1. The U.S dollar has lost value to the Brazilian real recently.

a.What recent events (political, economic, etc.) may have contributed to this? In what ways?
b.If general mills build a factory in brazil what impact would the weakening of the dollar have on general mills investment calculations (NVP, ROI, ect.) for this facility? Explain

a. To determine the recent events that may have contributed to the U.S dollar losing value to the Brazilian real, you can follow these steps:

1. Monitor Economic Data: Check for any economic indicators or reports that may have had an impact. Examine factors like GDP growth, inflation rates, interest rate changes, and trade balance between the two countries.

2. Assess Political Developments: Investigate any significant political changes or events that could have affected the currency exchange rate. Political stability, government policies, and international relationships can have an influence on currency values.

3. Analyze Trade Relations: Look at the trade relationship between the United States and Brazil. Any fluctuations or imbalances in terms of imports, exports, tariffs, or trade agreements can impact currency valuations.

4. Consider Market Sentiment: Market sentiment plays a crucial role in currency movements. Factors like market speculation, investor sentiment, and risk aversion can contribute to changes in exchange rates.

By analyzing economic data, political developments, trade relations, and market sentiment, you will be able to identify the recent events that may have contributed to the U.S dollar losing value to the Brazilian real.

b. If General Mills builds a factory in Brazil, the weakening of the U.S dollar would have an impact on their investment calculations, such as Net Present Value (NPV) and Return on Investment (ROI). Here's how:

1. Cost of Materials and Labor: A weaker U.S dollar means that General Mills would need to pay more for imported materials and labor from Brazil. This increase in costs would directly impact their investment calculations by reducing their projected ROI.

2. Export Revenue: If General Mills plans to export products from their Brazilian facility, a weaker U.S dollar might be beneficial. A weaker dollar would make their products relatively cheaper for international buyers, potentially increasing export revenue and positively impacting their investment calculations.

3. Exchange Rate Risk: General Mills would also need to consider the exchange rate risk associated with a weakening U.S dollar. Fluctuations in the exchange rate could impact the profitability and cash flows generated by their Brazilian facility, affecting NPV and ROI calculations.

Overall, a weakening U.S dollar can complicate investment calculations for General Mills' Brazilian facility, primarily due to increased costs, potential revenue fluctuations, and exchange rate risk.