Question: Please discuss the following in your case study analysis: (1) Define currency risk. (2) Discuss factors that cause and contribute to changes in currency exchange

Please discuss the following in your case study analysis: (1) Define currency risk. (2) Discuss factors that cause and contribute to changes in currency exchange rates and a firm's exposure to exchange rate fluctuations. (3) Discuss how currency rate fluctuations and currency risks apply to a firm's: Discuss the effect on Balance Sheet Discuss the effect on Income Statement Discuss the effect on Cash Flow Statement (4) Discuss the economic performance of Germany and the United Kingdom from 1988 to 1992. Discuss the effect of differences in economic performance affect exchange rates How does the Exchange Rate Mechanism (ERM) work (5) Discuss the attack on the Hong Kong dollar. Discuss the mechanics of a speculative attack and the "double play" process. (6) Provide an evaluation of the actions taken by the Hong Kong government compared with alternatives it might have taken. How does Mundell's Trinity factor into your analysis? Was this a first-, second-, or third-generation crisis?

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