Price per Pair
THB 826,920,000 $
THB Exchange Price per Pair
Rate after a
Total price Dollars
Cost of goods Total Cost of goods
Blades, Inc. Case
1. One point of concern for you is that there is a trade-off between the higher interest rates in
Thailand and the delayed conversion of baht into dollars. Explain what this means.
If the net baht-denominated cash flows are con
3. In general, do you think it is easier for Blades to hedge its inflows or its outflows
denominated in foreign currencies? Why?
It will be easier for Blades to hedge its outflows compared to inflows denominated in
foreign currencies because it can easily
1- Did the intervention effort by the Thai government constitute direct or indirect intervention?
As the government exchanged the reserves in dollars for baht for the currency strengths, the
intervention efforts by the Thai government constituted