What were the main causes of Argentina’s crisis of 2001–2002? What lessons were learned and what steps were taken to normalize Argentina’s economy?
Answer to relevant QuestionsWhat is meant by the term “overshooting”? What causes it and how is it corrected? Explain the meaning of “cross-rate consistency” as used by MNEs. How do MNEs use a check of cross-rate consistency in practice? Describe six arguments against a firm pursuing an active currency risk management program. What is the central problem involved in consolidating the financial statements of a foreign subsidiary? Explain how currency swaps can hedge foreign exchange operating exposure. What are the accounting advantages of currency swaps?
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