Assessment 1
Assessment – MKT5000 S3 2015
Assessment details
Description Marks
out of
Wtg (%) Due date
Marketing
Reflection
10 10 07 December 2015
Assignment 1 100 40 21 December 2015
Assignment 2 100 50 30 January 2016
Notes
1. All assessment items are to be submitted through the Moodle assessment
links found on the Study Desk.
2. The marketing reflection can be submitted in any format.
3. Assignments 1 and 2 are to be submitted using Word format (2010 or
earlier). Assignments submitted in a PDF format cannot be marked and will
be returned to students unassessed.
4. Assignments 1 & 2 are expected to have a title page which includes your
student name (as it appears on your enrolment record), your student
number, the course name and the assessment task as outlined in the
Communications Skills Handbook.
5. Submission times and dates refer to Australian Eastern Standard Time
(AEST).
6. Late submissions will incur a penalty of 5% per day unless a request for an
extension has been granted prior to the due date. Note the USQ extension policy
found at http://policy.usq.edu.au/documents.php?id=14749PL particularly
section 4.2.4 which states:
4.2.4 Late submission of Assignments
Students can apply for an extension of time to submit an Assignment at any
time up to the deadline. Students are strongly advised to make a request for
an extension as soon as their need becomes apparent. Delay in making a
request involves the risk that there will be insufficient time (with
consequential loss of Marks) if the request is refused.
The Course Examiner may grant a short extension of the deadline for
submission of an Assignment. Extensions are usually granted only in cases
of Compassionate and Compelling Circumstances in accordance with the
Assessment of Compassionate and Compelling Circumstances Procedure.
Generally, extensions will be limited to a maximum of five University
Business Days. A Student requiring an extension for a period of time in
excess of this should consider applying for a Deferred Assessment as per
section 4.4 ‘Deferred, Supplementary and Varied Assessment Items and
Special Consideration’ of these procedures.
Assessment 2
Granting of an Assignment extension is considered a significant concession.
Applications may be rejected if there is reason to believe that the Student is
seeking an unfair advantage as might be suggested by a pattern of repeat
requests for Assignment extensions.
Applications for extensions must be made in writing to the Course Examiner
together with accompanying documentation as specified in the Assessment of
Compassionate and Compelling Circumstances Procedure.
The application and all supporting documentation must be submitted
electronically.
An Assignment submitted after the deadline without an approved extension of
time will be penalised. The penalty for late submission without a preapproved
extension will be specified in the assignment instructions. At the
very least, the penalty for late submission is a reduction by 5% of the
maximum Mark applicable for the Assignment, for each University Business
Day or part Business Day that the Assignment is late. An Assignment
submitted more than ten University Business Days after the deadline will
have a Mark of zero recorded for that Assignment.
Course Examiners may refuse to accept Assignments for Assessment
purposes after Marked Assignments and/or feedback have been released. If
Compassionate and Compelling Circumstances appear to exist, Course
Examiners must consider these before refusing to accept an Assignment.
Assessment 3
Marketing Reflection – Explaining marketing management
philosophies (for the development of marketing strategy).
Description Marks out of Wtg (%) Due date
Marketing
Reflection
10 10 07 December 2015
Background
Reflective writing is the evidence of reflective thinking and reflective thinking is part of
the critical thinking process where people analyse, evaluate and make judgements from
new information and knowledge to ultimately arrive at an informed perspective. The
practice of reflective writing will be introduced in this first assessment task. In this
assessment you will be asked to prepare information for a business audience about
marketing management philosophies.
The Task
There are five alternative marketing management philosophies (also called marketing
philosophies) under which any organisation can conduct its marketing activities, and
these are; production concept, product concept, selling concept, marketing concept, and
societal marketing concept.
You have been asked to prepare a short commentary (500 – 700 words or equivalent 5 –
10 minute presentation) for a business audience explaining these marketing management
philosophies in such a way that business owners, who may have never had any formal
marketing education, could understand the five concepts and be able to decide which
one(s) to adopt as the fundamental building block of marketing activity and strategy.
Your commentary can take any form that would be acceptable to this audience (for
example, a blog, an article, newsletter item, a wikki, a short video presentation or slide
share presentation). In your submission you are to conclude your discussion with at least
one example of how a business could now incorporate or use this information to help
them develop a marketing plan.
Submission Instructions
All assessments are to be submitted using the link on the Study Desk for Marketing
Reflection Assignment which you will find at the end of module 3. You can submit
this task in any format you choose. If you choose to develop a video presentation then
you must also upload a script and/or power point slides with notes to accompany the
work.
Your work will require references to support your discussion. If you are submitting a
presentation, these references need to be evident in the script or presentation notes that
you also attach. Make sure you use the Harvard AGPS referencing style. There is an
electronic Harvard AGPS referencing guide in the USQ Library, and you can also refer
to the Communications Skills Handbook.
Assessment 4
The grading rubric
Below the
required
standard
0% – 49%
Meets the
required
standard
50% – 80%
Exceeds
the
required
standard
81 – 100%
Total
mark
Content
Did the student accurately define the marketing
management philosophies in such a way that a
person without university or marketing
knowledge could easily understand?
Did the student provide sufficient information
in their commentary about how you could
incorporate the understanding of these
concepts into a marketing strategy such that a
business person could understand enough to
make a decision on how to incorporate them
into their marketing efforts?
/5
Format and Evaluation
Did the student present their work; use a
communication style, and adopt a language
that would be appropriate for the audience
nominated?
Did the student present their work in a creative
and informative manner?
Did the student present their information in
such a way that they were able to confidently
convince the reader/watcher that they knew
what they were talking about, including
sufficient and appropriate theoretical evidence
and support?
/5
Final Comment:
/10
Total Mark /10
Assessment 5
Assignment 1 – Marketing Audit
The Assignment (You have two options)
Your first assessment task asked you to reflect on and write about marketing
management philosophies. This assignment now asks you to build on this by conducting
a marketing audit and then from that information develop a marketing plan – assignment
2.
You have 2 choices for these next 2 assignments as follows:
1. You can choose to complete these assignment tasks using the organisation or
company that you work for,
or
2. You can base your assignment on an organisation or company with which you
are familiar, or one that you may simply have an interest in.
Should you experience problems in choosing a company/organisation, please get in
touch with the course examiner.
Once you choose an option you are not able to change it between the two assignments as
assignment 2 builds on assignment 1. You do not need to declare your intent to use
either method until you submit your assignment.
Before you can develop your marketing plan and recommendations you need to know
more about the product offering, possible competitors, market opportunities and other
environmental factors that are likely to impact your strategy and implementation plan.
This review and analysis is known as a Marketing Audit. In assignment 1 you are
required to conduct a Marketing Audit that includes an analysis of the internal and
external factors that will be relevant to the development of a marketing strategy for
either a company or product of your choice. This assignment should be 2500 words
maximum – excluding references; refer to the Communications Skills Handbook1
for
more information about what is and what is not included in a word count.

1 A useful text for this course.
Description Marks out of Wtg (%) Due date
Assignment 1 –
Max 2,500 words
100 40 21 December 2015
Assessment 6
The Assignment Task
The assignment will have four sections as follows:
Section 1 – Organisational Overview
A marketing audit should always commence with an overview of the company, its
vision, mission and brand value. This information provides the reader with sufficient
context to then understand and evaluate your future recommendations and analysis. In this
section you should also provide sufficient information about the company and the
product/service you are focusing on so that the marker can appreciate the contextual issues
you explore in later sections of the assignment. It is also important that you incorporate here
some insights about the value proposition for this product/service.
Section 2 – Environmental Scan
In reviewing the organisation you are studying it is also important to consider and review
the organisation in terms of its internal strengths and weaknesses and the external
opportunities and threats it faces. SWOT, TOWS and PESTEL analyses are good
tools to assist this stage of your analysis as are environmental scans and it is
recommended that you use some of these tools in this section to summarise and highlight
relevant information. You may also use any other additional analysis tools that you deem
appropriate to provide you with the information for your audit. In this section you would
use tables, graphs and other ways to summarise the information – do not forget to
discuss your analysis and findings do not just present the information and hope that the
marker will understand what you think is important here.
Section 3 – Customer, Competitor and Stakeholder analysis
Next, you would consider the market in which the firm operates in terms of both
competitors and customers and this is done in 4 parts as outlined next:
1) A Target Market Analysis – Who are the target markets for this company
and product? It is likely that you will discover more than one possible target
market from the information you source, whilst you need to list them all in this
part of your audit and to analyse their priority and relevant merits, when it comes
to your second assignment and to the customer analysis (the next step) you are
only required to focus on ONE (1) target market. This is important – at this
stage of your assignment choose ONE target market, defend that choice (justify
with information from the first two sections and other sources) and then only
Assessment 7
discuss and plan for that ONE target market.
2) A Customer Analysis – Once you have selected and justified the ONE target
market you wish to focus on, outline any demographic and/or behavioural
characteristics of this segment. You would need to comment on:
i. Who is this market (demographics), where are they located, how
do they spend their time and money (psychographics); what else
defines them (interests, attitudes, values and/or lifestyles);
ii. the relative size of the segment;
iii. potential market share and opportunities for growth and
development;
iv. any other information including their likely purchase behaviour
and motivations purchasing this product as well as what the
product offering would be for this segment (what are they buying
and why); and
v. refer and reiterate how the value proposition discussed in section 1
relates to this segment with this product/service.
3) A Competitor Analysis – Given how you have defined the product offering
and value proposition for your chosen target audience in terms of its
benefits or features, this section would focus on how your product offering
compares to alternative purchase choices. Remember this can be broader
than just substitute brands – think more broadly here about substitute options
for spending their money. So you need to also include an analysis of the
products/services/substitutions that are likely to be competition for this
product offering in this market segment. You are also required in this
section to include an overview of the current positioning, value-chain
structure, marketing channels used and relevant market drivers for this
product/service.
4) A Stakeholder Analysis – You need to consider any other stakeholders who
might have an interest in or be able to impact the marketing of this product
offering in this segment.
Section 4 – Conclusions and recommendations for preliminary marketing
strategy
Once you have completed these steps you are then required to summarise the main
points and salient elements of this analysis to a concise statement of the overall
Assessment 8
strategic approach you will be recommending for your marketing and implementation
plan – a preliminary marketing strategy (which is assignment 2).
You need to defend your final decisions using both theory and practice references and
the content and learning activities presented in modules 1–4 will support this
assessment task. You should try to have a good list of references showing where you
have found your information and it is important to cite all work and websites you
have visited. Check with a USQ reference librarian if you are having trouble finding
appropriate information.
Report Writing
Guidelines on writing reports are provided in chapter 3 of the 4th edition of
the Communication Skills Handbook.
For assignments 1 and 2 (not the marketing reflection) your reports should
comprise:
1. An executive summary (no more than 1 page);
2. An introduction (approximately 200 words);
2. The body that includes all the analysis of the current marketing and internal and
external firm environments, customer analysis, competitor analysis and any
other analysis. (Approximately 2000 words); and
3. A conclusion. This includes the statement of the issues you have found, the gaps
identified, overall strategic approach and future recommendations.
(Approximately 200 – 300 words).
The report should present logical, sequential and persuasive arguments, justified or
supported by secondary sources of evidence. The purpose of your audit is not to
simply reword or describe the product or brand or to provide direct quotes from the
literature, but to offer a thorough understanding of the marketing issues, challenges
and opportunities facing your chosen organisation in their goal of growing their
market share in this industry and with this product. Assignment 2 will then outline
the proposed marketing plan to take the next step forward to market.
In this assignment you will be assessed on:
1. The ability to locate, assess and research material related to current marketing
planning process and environmental scanning requirements. You will need to use
Assessment 9
logic and read widely to identify issues and leads to where you should research
for this firm. These are important skills for a marketer to develop;
2. The ability to demonstrate an understanding of the current marketing planning
process and environmental scanning requirements;
3. The ability to identify and assess relevant theoretical and management
issues in the environmental scan and audit (SWOT, PESTEL, TOWS,
customer, competitor and stakeholder analysis);
4. How well you present logical arguments and gap analysis and how well
you defend your recommendations and conclusions.
5. The ability to justify your position with use of supporting references;
and
6. The communication style you adopt, including correct spelling, grammar
and referencing. Your report should be in Times New Roman 12 point
with one and a half line spacing.
Assessment 10
Marking criteria for assignment 1 – MKT5000
Criteria
Does not meet minimum
standard required (fail)
0 – 19 marks
Work is of minimum
standard (pass)
20 – 26 marks
Exceeds Minimum
standard (distinction)
27 – 33 marks
Work is of a high
achievement standard
34 – 40 marks
Learning objective 1
– problem solving
and analysis.
The audit has shown
understanding of the
internal and external
factors relevant to the
organisation that will
impact the
development of a
marketing strategy.
It has demonstrated
clear problem solving
and critical thinking
in the analysis and
choice of theory.
Total Mark
/40
Students who are awarded a mark in
this section have done one or more of
the following:
? Discussion of key points and
themes has failed to demonstrate a
clear understanding of theory and
the characteristics of the target
market chosen.
? The marketing issues (either
internal or external or both)
relevant to the product and the
company have not been adequately
identified and included in the
analysis.
? The tools for analysis have not
been correctly used and the results
have been incorporated into the
conclusions in a manner that shows
logical integration of theory and
other sources of information.
Students who are awarded a mark
in this section have done one or
more of the following:
? The discussion of key points
and themes which has
demonstrated an adequate
understanding of theory and
the characteristics of the
product. More detailed and
deeper analysis would have
resulted in a better score for
these criteria.
? The marketing issues relevant
to the product and the
company have been
adequately identified and
included in the analysis
? The tools for analysis have
been correctly used and whilst
the results have been
incorporated into the
conclusions there are some
inconsistencies with the
integration of theory and other
sources of information.
Students who are awarded a mark
in this section have done one or
more of the following:
? The discussion of key points
and themes has demonstrated a
solid understanding of theory
and the characteristics of the
product.
? Analysis was clear and wellconstructed
with some
questions and inconsistencies.
? The marketing issues relevant
to the product and the
company clearly identified and
included in the analysis.
? The tools for analysis have
been correctly used and results
have been incorporated into
the conclusions.
? Some inconsistencies exist
with integration of theory and
other sources of information.
Further information and
analysis would have improved
the work.
Students who are awarded a mark in
this section have done one or more of
the following:
? The discussion of key points and
themes which has demonstrated
a superior understanding of
theory and the characteristics of
the product.
? Analysis was detailed and
included appropriate additional
sources of information.
? The marketing issues relevant to
the product and the company
have been clearly and
thoroughly identified and
included in the analysis.
? The tools for analysis have been
correctly used and the results
have been incorporated into the
conclusions.
? There are no inconsistencies
with the integration of theory
and other sources of
information.
Assessment 11
Criteria
Does not meet minimum
standard required (fail)
0 – 9 marks
Work is of minimum
standard (pass)
10 – 13 marks
Exceeds Minimum
standard (distinction)
14 – 16 marks
Work is of a high
achievement standard
17 – 20 marks
Learning objective 2
– Professional
Communication and
academic literacy
The work is well
written, uses language
and style appropriate
for a professional
marketer.
The work is
appropriately
supported with
relevant theory and
referencing style
reflects academic and
professional
requirements.
Total mark
/20
Students who are awarded a mark in
this section have done one or more of
the following:
? Failed to correctly cite relevant
sources of information to support
their conclusions and discussions.
? Failed to use correct Harvard
AGPS referencing style.
? Failed to submit the assessment in
the required report format.
? Submission has grammatical
and/orspelling errors.
? Have failed to use the required
analysis tools (SWOT, TOWS,
PESTEL, customer, stakeholder
analysis, and competitor analysis)
and/or have provided only cursory
analysis with limited
understanding of the tools used and
the context of the analysis.
? Failed to provide a report that
shows logical presentation of
information and synthesis of
material is shallow and superficial
in its analysis of information and
largely lacks coherence for
conclusions.
Students who are awarded a mark
in this section have done one or
more of the following:
? Generally cited relevant
sources of information to
support their conclusions and
discussions using the correct
Harvard AGPS referencing
style and in report format.
? Many analysis tools (SWOT,
TOWS, PESTEL, customer,
stakeholder analysis, and
competitor analysis) used –
not all, but largely failed to
conduct a deep and
meaningful analysis with
limited understanding of the
tools used.
? Have provided a report that
shows some attempt to provide
a logical presentation of
information and synthesis of
material. Analysis is
somewhat superficial and there
are some problems in terms of
the coherence of discussion
and conclusions.
Students who are awarded a mark
in this section have done one or
more of the following:
? Consistently cited relevant
sources of information to
support conclusions and
discussions using Harvard
AGPS referencing style and in
the required report format.
? Have consistently utilised the
appropriate analysis tools and
have conducted a deep and
meaningful analysis which
shows a good understanding of
the tools used and context for
the analysis.
? Report shows logical
presentation of information
and synthesis of material,
demonstrating a sound
understanding of the analysis
of information and a
coherence of discussion and
conclusions.
Students who are awarded a mark in
this section have done one or more of
the following:
? Provided exemplary referenced
support for their work correctly
cited using Harvard AGPS
referencing style and in the
required report format.
? Have utilised the required
analysis tools and have included
information and/or analysis that
exceeds the requirements for this
assessment task.
? Have conducted a detailed and
thorough analysis of the
information using referenced
evidence and other sources to
demonstrate a deep
understanding of the tools used
and have presented a synthesis
and analysis of material that
shows considerable coherence
and depth of discussion and
conclusions.
Assessment 12
Criteria
Does not meet minimum
standard required (fail)
0 – 19 marks
Work is of minimum
standard (pass)
20 – 26 marks
Exceeds Minimum
standard (distinction)
27 – 33 marks
Work is of a high
achievement standard
34 – 40 marks
Learning objective 3
The work shows an
understanding of the
environmental and
contextual issues in
marketing and
provides a creative
presentation of
conclusions.
Total Mark
/40.
Students who are awarded a mark in
this section have done one or more of
the following:
? Incorrectly identified or failed to
identify the key environmental and
contextual issues relevant for the
product and target market of their
choice.
? The assignment lacks a
demonstrated understanding of
marketing strategy.
? There is an inadequate analysis and
consideration of competitors and
market opportunities
? Conclusions do not link logically
to the discussion and analysis.
Students who are awarded a mark
in this section have done one or
more of the following:
? The key environmental and
contextual issues relevant for
the product and market chosen
have generally been identified
in the report.
? The proposal shows a
superficial understanding of
marketing strategy
? The analysis and consideration
of competitors and market
opportunities is adequate but
would benefit from a greater
understanding of theory and
work collecting data.
? Conclusions link logically to
the discussion and analysis but
are somewhat superficial in
nature.
Students who are awarded a mark
in this section have done one or
more of the following:
? The key environmental and
contextual issues relevant for
the product and market chosen
have been clearly identified in
the report.
? The proposal shows a sound
understanding of marketing
strategy.
? The analysis and consideration
of competitors and market
opportunities is sound but
would benefit from a more
incorporation of theory and
other data.
? Conclusions link logically to
the discussion and analysis.
Students who are awarded a mark in
this section have done one or more of
the following:
? The key environmental and
contextual issues relevant for the
product and market chosen have
been clearly and thoroughly
identified in the report.
? The proposal shows a detailed
and well-reasoned understanding
of marketing strategy.
? The analysis and consideration
of competitors and market
opportunities is thorough and
demonstrates a detailed
understanding of theory and
data.
? Conclusions link logically and
consistently to the discussion
and analysis and show a solid
understanding of the material
covered.
Final mark /100
Final Comments:
Assessment 13
Assignment 2 – The strategic marketing plan
Description Marks out of Wtg(%) Due date
Strategic marketing plan
(modules 5 – 8)
100 50 30 January
2016
Maximum word count 3,000 words
General overview
This assignment leads on from assignment 1. Essentially you are required to establish
a marketing plan to grow the market and sales for the organisation you have chosen
in the target market you have focused on and given the situational analysis you have
conducted in assignment 1.
This assignment should commence with an overall summary (about one page) of the
context that you established in assignment 1. This will allow the marker to come up to
speed on your analysis and thinking as the baseline for your recommendations in this
assignment (it is unlikely that you will have the same marker for both pieces of
assessment, so consider this in what you present). You DO NOT need to include the full
assignment 1 here but you may wish to replicate some of the analysis tables in
appendices to this assignment if they are relevant – if you do this, make sure you refer to
them in your summary and highlight the key features that a reader needs to note from
these tables and analysis summaries. You may make adjustments to your original
analysis and conclusions here based on the marking feedback you received in the first
assignment.
This assignment should then commence with a specific statement of the marketing
objective/s that will guide this plan based on the context you have set from assignment
one. You will then show how each of the marketing mix elements (the 4 Ps) will
contribute to the achievement of this objective in your plan. Each of the elements of the
marketing mix are to be considered (product, place, price and promotion) and for each
you will need to discuss the strategy you will adopt (with appropriate justification from
theory and other sources), and the tactics you would recommend.
Finally, you will conclude with consideration of a timeline for this plan indicating the
ordering of your tactical elements which will result in the achievement of the overall
Assessment 14
objectives of the plan. You also need to present a contingency plan which would
consider any threats or potential reactions from competitors that you identified in
assignment one as potentially having a negative impact on your plan and how you
would propose these be dealt with if and when they arise. There is no requirement in
this plan to focus on or prepare and defend a budget.
Be sure to attach all pertinent documents to your report such as any relevant tables and
analysis from assignment one, to support your recommendations. Before submitting
your plan, ask yourself the question, “Does this contain all of the information that
would be needed for someone else to make a decision in my favour and adopt the
recommendations I have made?” If not, revise your work.
Assignment format
This assignment needs to be written as a formal report (refer to chapter 3 of the
Communications Skills Handbook for all the required elements) and would include the
following sections:
1. An executive summary (no more than 1 page)
2. An introduction which will be the overview or summary of assignment
one – no longer than one page (this will not be included in the word count for
this assignment), the summary should briefly summarise the analysis work
conducted including information about the target market you selected and the
summary of the issues identified in assignment one about the product offering,
the target market’s decision making process and any other psychological
factors that are relevant, competitor analysis and the overall marketing
objectives you suggested be adopted in the development of the marketing plan.
Include any relevant tables and analysis you provided in assignment one as
evidence to support your recommendations here in assignment two. These can
be included either as appendices to the assignment or they can be incorporated
into the body of assignment two as you deem relevant. Regardless of which
approach you take, it is important that it is clear that these are the tables and
analysis from assignment one.
3. The Marketing plan: This represe

Assessment 1:Note: In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted. The maximum possible points is 40.
Maximum points: 40 points
1. The following excerpt is from the case study “The Euro in crisis: Decision Time at the European Central Bank”. (distributed in the class)

“……a bailout for Greece would send a signal to other indebted member states that the ECB would step in if private lenders become nervous.”

Answer the following questions with appropriate diagram and using AD-AS model, Money market, aggregate expenditure model, and forex market (as required). For part a, b and c appropriate diagrams are MUST. Else points will be deducted.

a. When ECB went out for bail out then what was expected to happen to the interest rate in Greece? (10 points)

b. Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices. (10 points)
c. If government of Greece also increases (assume) the expenditure (expansionary fiscal policy) then what do you think can potentially happen to prices? Provide the relevant diagram and explain your answer.(10 points)
d. Overall do you think that bail out of Greece is healthy policy from the perspective of ECB? Answer this one in context of the Case study. ( 5 points)

e. Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case study. Page limit is one page. (5 points)

Assessment 2:
Note: In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted. The maximum possible points is 40.

1. The following information is from International Business Times (April 4, 2012)

“China has reacted to U.S. QE in the past by expressing dismay, primarily given the overweight U.S. dollar position in their foreign currency reserves.”

(Source: http://www.ibtimes.com/exnet/chinese-reaction-fed-qe3-not-happy-797141 )
Explain the dismay of Chinese government due to quantitative easing (QE) using the FOREX market model discussed in the class. Make sure that you consider the undervalued exchange rate of China while answering the question. Provide neat diagram (s) to explain your answer. (20 points)
2. Let’s assume the following information for an economy.

C=10000+0.6Y
I=2000
G=5000
X=600
M=400
[All the notations are standard as discussed in the class]

a. Find the size of the multiplier in this economy. (3 points)
b. Find the short run equilibrium output. (7 points)
3. The following news was issued in Bloomberg.

“Thailand’s baht fell for a second week to reach the lowest level since 2010 and the benchmark stock index led losses in Southeast Asia on concern worsening political unrest will spur further capital outflows”.

(http://www.bloomberg.com/news/2013-12-27/baht-falls-a-second-week-on-concern-protests-to-spur-outflows.html )

a. Why do you think that there is going to be capital outflow? (3 points)

b. If indeed there is going to be huge capital flight, what should be the policy taken up by Bank of Thailand to avoid a free fall of their exchange rate and how they can achieve it (explain at least one instrument)? (5+2=7 points)