Regarding the Harvard Business School "Universal Circuits,Inc" case study (9-236-006).Answer the following questions with as much detail as possible:

1. Does Universal Circuits Irish controller have a convincing argument for the weakness of the dollar? Why or why not? How do you interpret the evidence?

2. In view of the fact that the dollar is the Irish subsidiarys functional currency, should the controller be worried about its exchange value? What is the nature of the foreign exchange exposure(s) faced by the Irish subsidiary? Why isnt the Irish subsidiarys functional currency the Irish punt?

3. Would you approve the controllers request to buy punt forward? What considerations factor into your decision?

4. Considering Universal Circuits exposures worldwide, what general policy would you recommend concerning the handling of foreign exchange exposures? Should all exposures be covered or just some? How much of a role, if any, should local operating managers play in exposure management?