1. Suppose XX Inc. has operations in multiple countries including the UK. If the pound depreciate significantly compared to US$, what will be the impact on XXs financial statements? If a foreign government orders to freeze XXs assets in that country due to political reasons, what are the potential options for XX Inc to reduce these risks? Explain?

2. Suppose XX Inc., a US firm, is an importer and exporter. What will be the impact of the following announcement on XXs business?

US government announced that it is comfortable with a rising euro relative to the dollar.

Mexican government announces that it will print billions of new Pesos and inject them into the economy to reduce the countrys unemployment rate.