What best explains the collapse of the Mexican currency.

Global Masters in Business Management

Introduction

The assessment of this unit is an individual presentation and written report. The written component willaccount for 70% of the mark and the presentation for 30%. The written report and presentation will be based on the students` findings on a case study which will be provided at the beginning of the unit and saved in the relevant folder in myuca.

The case study
The students will be provided with a case study which they will analyse in order to respond to the questions provided in together with the case study. The case study is based on real events that happened in the past and it contains quantitative and qualitative information which the students need to take into account in order to respond to the questions.

The Brief

Word limit:1,500
Structure: it should include an introduction paragraph introducing the case study, main body where the students will analyse their findings in order to reply to the questions and conclusions where the students will provide their personal opinion and observations based on facts regarding the case in order to provide alternative solutions or high light any other issues in the case study they may deem appropriate and caught their attention while analysing the case study.

Presentation
Prepare a presentation of no more than 5 slides summarising the salient points of the findings of their report. The students will not be requested to present.

Hand in requirements:
On completion of this unit, you will be expected to submit a written report with your findings and conduct a presentation.
Written report (1,500 words)
Presentation - digital copy
Case Study
Mexico: The tequila Crisis 1994 -1995

Questions
1 What is your answer to the question posed by the Banco de Mexico officials on page 1 of the case: "How could extensive and well-executed fiscal, supply -side and trade reforms end up in such a dismal situation?"

2 What best explains the collapse of the Mexican currency: psychological factors (expectations and confidence) or fundamental factors (economic phenomena such as current account and fiscal deficits)?

3 Should Mexico be " bailed out" by the international community? How does your answer to this question relate to your position on question 1 and 2 above?