1. You are the CEO of Millennium Plc, which is a multinational corporation, incorporated in the US
but invests in many emerging countries including Poland. Poland used to have a fixed exchange
regime regarding its currency (Before the year 2000). However, Poland moved to adopt a free
float exchange rate regime as from 14th of April 2000.
1.1. Discuss the motives of Poland’s move and its implications on the country’s economy (50%)
1.2. What consequences this change might have on Millennium Plc, and what strategy should
the CEO employ in order to manage the exchange rate exposure resulting from the change
in the currency regime? (50%)
Please keep a copy of the essay for your own records. The essay should be submitted
electronically via Turnitin.
Specific Guidelines
1- Your essay should not rely solely on the lecture notes and core textbooks.
2- You are expected to use external resources and professional databases to learn more about
the topic and provide an adequate analysis. All external sources must be referenced
accordingly.
3- You are expected to mention all possible techniques to manage the exposure of the
company, but speak in details about one technique of your choice.
4- A good essay should include real market examples, figures and tables to support your
arguments (especially when talking about Poland’s situation and the chosen hedging
technique).
5- You are entitled to use a numerical example of your own when it comes to the hedging
technique.
General guidelines:
I. Your essay should clearly demonstrate analytical, critical and evaluative skills in relation
to international financial management.
II. It is expected that your essay should demonstrate a wide background of reading and
research; and only then, you would get an above average grade.
III. All references should be acknowledged (see Library handout on reference styles –
Harvard approach is strongly recommended).
IV. Good standards of written English and presentation are expected and marks will be
deducted if such standards are not met.
V. The length of the coursework should be 1,000
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10% words.
