Name ____________________________
Chapter 7
DEALING WITH FOREIGN EXCHANGE
VIDEO CASE: “CREATING FINANCIAL ACUMEN WITHIN YOUR COMPANY.”
1. Blythe McGuire stressed that all employees are affected by finance and can affect
finance. As a result, she felt that there is a need for all to understand something about
finance so that everyone can have a “common language” on financial issues. One
aspect of finance is the topic for this chapter “Dealing with Foreign Exchange.” Do
her comments apply to understanding the currency market?
2. How can employee understanding of the currency aspect of finance contribute to
corporate strategy and strategic response?
3. Blythe McGuire pointed out that the amount of financial acumen could affect the
assumptions made in decisions. What acumen involving the currency aspect of
finance could affect such assumptions?
4. Blythe McGuire indicated that results are key in evaluating financial decisions but
that it might take years before the results can be adequately measured. Based on what
you have learned in this chapter, do you think that decisions in the currency market
take that long to evaluate?
5. Ms. McGuire gave an example in which one person was given responsibility for both
financial decisions and monitoring the decisions. What would be the danger of
allowing one expert to make all the decisions concerning foreign exchange?