1. The CEO of Partido Switch Plc, which is a multinational corporation, incorporated in the US but invests in many emerging countries including Brazil. Brazil used to have a fixed exchange regime regarding its currency (Before the year 1999). However, Brazil moved to adopt a free float exchange rate regime as from January 1999. 1.1. Discuss the motives of Brazil’s move and its implications on the country’s economy (50%).

1.2. What consequences this change might have on company, and what strategy should  employ in order to manage the exchange rate exposure resulting from the change in the currency regime? (50%)