Effect of Devaluation of Naira on Price Level

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

DIBB, S. SIMKIN L, L. PRIDE, W.M. and FERELL, O.C. Marketing: Concepts and Strategies. Fourth European ed. Boston: Houghton Mifflin, 2001

McDaniel, C. and Gates, R. (2001), Marketing Research Essentials, (3rd Edition), USA: South Western Thompson Publishing

This case study is being submitted on 02/20/2013, for Heather Teague MAR2011- Principles Of Marketing

An Individual Case Study Prepared by Yanan MIAO under the Supervision of Pro. Hans MUHLBACHER for International Marketing Course T1-2011-2012

David J. and John F. 2009, Foundations of marketing, 3rd ed., McGraw-Hill higher Education,5: 120-122

Kotler, P. , Wong, V., Saunders, J., Amstrong, G., 2005. Principles of Marketing 4th, edition Pearson educational editorial.

This article is mainly focus on the devaluation and depreciations of Australian dollar against US dollar, euro, pound and yen comparing in terms of floating exchange rate. The phenomena behind fixed exchange rate and floating rate is; fixed exchange rate is a rate that is set or fixed by the government or central bank to maintain its currency against gold or another major currency such US dollar or the currency basket. In fixed exchange rate, the country’s central bank or other concerns will maintain exchange rate by buying and selling its own currency on foreign exchange. The article was focusing on successful parties and defeated parties due to Australian dollar fluctuations.

This paper was prepared by Bruce S. Silver for Marketing Management 6013, taught by David Gregorich, MBA, Ed.D.

On December, 1994 the government of Mexico announced the devaluation of its currency which was a surprise to the financial markets. Mexico had followed an “exchange rate policy of maintaining the peso within a well defined band against the US dollar” (Truman,1996.199). As the current account deficit rose this policy had come under pressure. The devaluation on December 20 fail to stabilize peso and two days later was forced to let it float, causing its external value to plummet.

This report is an assessment for the marketing unit in the Higher National Diploma Business Course.

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.

I hereby confirm that this assignment is my own work. I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard Referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarising.

A project submitted to Dr. Vu The Dung in partial fulfillment of the requirements for the International Marketing course