Le Serpent- An International Finance Case

Study
I would try to analyze the case study in the following
manner :

 Brief overview
 Objectives
 Analysis in terms of :
 EMS
 Italian Era
 Impact of devaluation of Lira on Cost,
Prices and Sales
 Impact within Italy of devaluation on interest rates
 Overview
• The case concerns the role of the Italian lira in the ERM
and the causes and consequences of the devaluation of the
currency
• The issues concerning the case study are :
• EMS
• Impact of devaluation of lira on the
Company in terms of Costs, prices
and level of sales
• Impact of devaluation upon Interest
rates
 Objectives
• The case primarily reviews exchange rates and the
risks it poses to the operations of an international
business
• In this case French Company having its affiliate in
Milan.
• The case also throws light upon benefits and costs of
fixed exchange rates and thereby giving us a macro
economic side of the subject.
 Analysis
• In terms of EMS
