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    1) Discuss how the fall in the value of the peso affected bu

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    1) Discuss how the fall in the value of the peso affected business opportunities for companies doing business in Argentina and in exporting and importing?
    2) should the government allow thepeso to fall even farther to stimulate exports? why, or why not?
    3) Do you think HSBC should remain inArgentina? provide rational for your opinion.

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    I have read this case before. Here is your homework solution:

    1) Discuss how the fall in the value of the peso affected business opportunities for companies doing business in Argentina and in exporting and importing?

    -- The main effect from the fall in the value of the peso in this case is that it caused hyperinflation, which is characterized as inflation occurring at extremely high rates. The fall in the value of the peso caused the exporters to become more competitive, but the main problem was that the prices of the goods being imported increased quicker than the prices of the domestic goods. The depreciated peso also caused ...

    Solution Summary

    1) Discuss how the fall in the value of the peso affected business opportunities for companies doing business in Argentina and in exporting and importing?
    2) should the government allow thepeso to fall even farther to stimulate exports? why, or why not?
    3) Do you think HSBC should remain inArgentina? provide rational for your opinion.

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