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Abstract

The Mexican government maintained the same exchange rate of about 3 pesos per the US dollar for five years before its dramatic depreciation on December 20, 1994. This devaluation plunged the country into economic and financial turmoil for 1995. This case is designed to provide a basis for discussing currency devaluation forecasting and for assessing the implications of the foreign exchange stabilisation program on foreign manufacturing operations. Moreover, two Internet exercises have been added to explain how the Internet can be used to obtain information on the case concepts. This case was sponsored by the Indiana University CIBER Case Collection.
Location:
Other setting(s):
1994-1995

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Abstract

The Mexican government maintained the same exchange rate of about 3 pesos per the US dollar for five years before its dramatic depreciation on December 20, 1994. This devaluation plunged the country into economic and financial turmoil for 1995. This case is designed to provide a basis for discussing currency devaluation forecasting and for assessing the implications of the foreign exchange stabilisation program on foreign manufacturing operations. Moreover, two Internet exercises have been added to explain how the Internet can be used to obtain information on the case concepts. This case was sponsored by the Indiana University CIBER Case Collection.

Settings

Location:
Other setting(s):
1994-1995

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