UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: MGMT 38000

QUESTION DESCRIPTION:

MGMT 38000 INTERNATIONAL BUSINESS

CASE 6  ZIMBABWE’S HYPERINFLATION WHO WANTS TO BE A TRILLIONAIRE?

Speaking before an audience of concerned citizens and international spectators in July of 2008, Gideon Gono, Governor of the Reserve Bank of Zimbabwe, tried to reassure the crowd that the government of Zimbabwe had its monetary policy under control. “This time, we will make sure that those zeros that would come knocking on the governor’s window will not return.” Not everyone believed that Mr. Gono had things under control.  .......... 

Discussion Questions:

1. What is the relationship between hyperinflation and currency devaluation?
2. What problems does hyperinflation create for MNCs operating in countries with such rapidly rising prices?
3. Do traditional methods of reducing exchange rate risk work for companies operating in an environment such as that being experienced in Zimbabwe today? Explain your answer.
4. What should Zimbabwe do re-establish confidence in its currency? 

 

 

 

 

SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:
1. Marketing
2. Strategic Business Management