This assessment is linked with the following CLOs (as per syllabus):

CLO 2 Distinguish the features of different types of foreign exchange markets

CLO 5 Calculate the extent of foreign exchange risk exposure and recommend tools for its management

Question(s) link with CLOs:

Question	CLO 1	CLO 2	CLO 3	CLO 4	CLO 5	CLO 6	Max. point	Points earned
1	0%	100%	0%	0%	0%	0%
2	0%	0%	0%	0%	100%	0%
TOTAL

Instructions for Case Analysis

• The tables should be prepared using the table feature of MS WORD within the descriptive answers of the project and uploaded as MS WORD documents.
• Last Date for Submission: April 11, 2022 - 12 AM
• No. of attempts: 01
• Minimum Words for the theory question: 300 words
• Plagiarism percentage Allowed: 20%
• The student’s name and ID # should be written on the first page of the assignment.

RUBRICS

Project Grading Rubrics

Criteria	Poor 0-50%	Average 51-70%	Good 71-90%	Excellent 91-100%
Identification of the problem – 20%	Unable to identify the key issues of the topic	Just able to identify the key issues of the topic	Clearly identified the key issues of the topic	Excellent ability to identify the key issues of the topic
Analysis and arguments – 40%	Unable to select and use the relevant methods of analysis/theories for arguing the point	Able to select and use some methods of analysis/theories for arguing the point	Skilled at selecting and using appropriate methods of analysis/theories for arguing the point	Adept at selecting and using appropriate methods of analysis/theories for arguing the point
Conclusion -20%	The conclusions do not flow from the analysis	Fairly appropriate conclusions	Good conclusions that flow from the analysis	Excellent conclusion closely flowing form the analysis
References and Formatting – 10%	Poor formatting and unprofessional references	Basic formatting and few references	Good formatting and references	Excellent formatting and professional references
Submission -10%	Not submitted	Late without a valid reason	Late with a valid reason	On time

Part 1 - CLO 2 - 10 marks

CLO 2 Distinguish the features of different types of foreign exchange markets

The following link takes you to the Triennial Central Bank Survey of Foreign Exchange Markets in 2019 published on the website of the BIS (Bank for International Settlements). https://www.bis.org/statistics/rpfx19.htm?m=6_381_677

1. Observe the data published and depicted in the graph ‘Global foreign exchange market turnover’.
2. Your task is to select any five countries and show the comparative data of the various types of foreign exchange market instruments traded by each of those countries.
3. Prepare a table showing the comparative data.
4. Give your comments in 500 words about the relative importance of each type of instrument for the countries that you have selected.

Part 2 - CLO 5 - 10 marks

CLO 5 Calculate the extent of foreign exchange risk exposure and recommend tools for its management

Dragon Corporation is the Taiwanese affiliate of a U.S. manufacturer. It has the balance sheet at the end of the financial year 2020 as shown below. The historical exchange rate between the two currencies was $0.0322=NT$1. During the year the Taiwanese dollar revalues to US $0.0357=NT$1.

The head office is preparing its consolidated financial statements for 2020. Calculate and comment on the accounting exposure and the translation gain/loss from the Taiwanese affiliate using different translation methods that arise due to foreign exchange risk exposure.

ASSETS	NT$	LIABILITIES & OWNERS’ EQUITY	NT$
Cash	5,000	S-T payables	21,000
Receivables	14,000	L-T Debt	27,000
Inventories	22,000	O/E	32,000
Fixed Assets (net)	39,000
Total	80,000	Total	80,000

Answer rating: 100% (QA)

Part 1 CLO 2 Comparative Data of Foreign Exchange Market Instruments Traded by Selected Countries Country Spot Transactions USD bn Outright Forwards USD bn Foreign Exchange Swaps USD bn Currency Swaps ... View the full answer