Billabong Value of the Australian Dollar against the United States

Module 3

Read the Billabong case on page 318.

By the end of day 7, provide a written analysis of the case, giving a brief synopsis and answering the following questions:

Why does a fall in the value of the Australian dollar against the U.S. dollar benefit Billabong?
Could the rise in the value of the Australian dollar that occurred in 2009 have been predicted?
What might Billabong have done in order to better protect itself against the unanticipated rise in the value of the Australian dollar that occurred in 2009?
The Australian dollar continued to rise by another 20 percent against the U.S. dollar from 2010 and 2012. How would this have affected Billabong? Is there anything that Billabong might have done to limit its long-term economic exposure to changes in the value of the currency in its largest export market?
Post your analysis as a 3-5 page (doubled-spaced) Word document. Use 12 pt Times New Roman font, proper grammar, and APA writing style. Your paper will be graded using the following rubric:

Grading Criteria

Maximum Points

Described and explained the benefits to Billabong resulting from a rise in the value of the Australian dollar.

23

Explained the likelihood of predicting the 2009 change in the value of the Australian dollar.

23

Identified those things that Billabong could have done to protect itself from currency fluctuations.

23

Explained the effect of long-term exposure to currency changes and identified what Billabong could do to protect itself.

23

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources, displayed accurate spelling, grammar, and punctuation.

8

Total

100

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