Marketing Planning and Strategy (Global Exchange Rate Effects)1 Assignment

Marketing Planning and Strategy (Global Exchange Rate Effects)1 - Assignment Example For exporting companies the most favorable conditions are when a national currency is week. Gali and Monacelli (2005) demonstrate the case which implies that in countries with weak currencies, what seems good for the exporters, the exchange rates fluctuations are usually high, what decreases the favorability of the situation. Currencies often have inflations at those times, and it implies additional difficulties, as to prognosing that inflation, planning pricing policy, and making urgent decisions when situation changes abruptly. In the example by Taylor (2009) the financial crisis in August of 2007-2008, which touched the whole world, especially South America and Asia – important strategic US trading partners, the exchange rate sharp changes caused the change in the structure of trading in general. For example, the exporting companies in countries with weakened currency have got the