Explore Your Own Case in Point: How Currency Movements and Purchasing Power Parity Affect Your Company After reading this chapter you should be prepared to answer some basic questions about your favorite company.

1)Volatile currency movements can have important effects on your company. Historically speaking, were there any currency crises in different countries that would have affected your companys costs or revenues? What about the recent 2008 and 2009 global economic crisis period? 2)How can your firm lower its debt costs by tapping global credit markets in the future? Will it cost less to borrow from low interest rate countries? 3)How does purchasing power parity affect your firms purchases of goods and services from other countries? Will it cost less to buy identical supplies from other countries that have lower prices?