International Business Case Study Example | Topics and Well Written Essays - 750 words

International Business - Case Study Example These suggestions and recommendations are further used to chalk out the effective strategies for the accomplishment of organizational goals. Any effective formulation stage always facilitates the ideas and recommendations which are flexible and can be customized as per the emerging challenges and scenarios (Thomas 28). Besides all viable recommendations proposed at this stage need to be pragmatic, realistic and readily implementable. 3. Implementation- In a way this happens to be the most crucial stage of strategy formulation as the eventual litmus test on any effective diagnosis and formulation is that it eventually gets implemented in a methodical and planned manner (Proctor 164). Response- Exchange rates need to be stable and predictable, as reliable and predictable exchange rates have many advantages (Schaefer 46). Stable exchange rates instill confidence in both the importers and exporters regarding the certainty with regards to the foreign payments. Besides unstable exchange rates can wreck havoc on the economies that are predominantly dependent on trade. Unstable exchange can jeopardize the economic growth in such nations. Moreover, stable and predictable exchange rates encourage the international investors to engage in long term investments. In contrast, unstable exchange rates give way to speculative trading in the international capital markets and are more prone to stimulating capital flights from one nation to other. It is a fact that many developing nations do rely on imports to sustain their technology and capital associated requirements. Stable exchange rates enable the developing nations to go on with their development initiatives in a planned an d predictable manner. Stable exchange rates also boost multilateral trade and close trade cooperation between the regional partners. Stable exchange rates are also of pivotal relevance