Exchange Rate Essays and Term Papers
Last update: July 13, 2014-
China’s Exchange Rate Peg Concerning
China’s Exchange Rate Peg concerning Trade Policy with U.S. Overview of the Problem The U.S. and China trade imbalance continue to be on the rise. U.S. manufacturing firms and workers voiced complaints over the competitive challenges posed by cheap Chinese imports. China’s trade policy of pegging its currency, the yuan, to the U.S. dollar has enabled an unfair trade advantage according to the U.S. Some have gone as far as calling it “currency manipulation.” The
Rating:Essay Length: 1,983 Words / 8 PagesSubmitted: November 10, 2009 -
Economic Effects of the Foreign Exchange Rate
INTRODUCTION This paper tackles the effects of the foreign exchange rate as a whole and how it affects the country and at the same time how it gets affected. This paper enumerates the advantages and disadvantages of having a strong Peso. The paper also discusses what factors affect the strengthening and weakening of the Philippine Peso. This paper also includes an in depth analysis of how the foreign exchange could affect and gets affected by
Rating:Essay Length: 3,653 Words / 15 PagesSubmitted: December 4, 2009 -
Exchange Rate Mechanisms - Currency Hedging
Exchange Rate Mechanisms Paper - Currency Hedging University of Phoenix Global Business Strategies MGT 448 Oct 05, 2005 Exchange Rate Mechanisms Paper - Currency Hedging Currency hedging involves deliberately taking on a new risk that offsets an existing one, thereby reducing a businesses’ exposure to negative change in exchange rates, interest rates, or commodity pricing (Economists.com, n.d.). “Currency hedging allows a business owner to greatly reduce or eliminate the uncertainties attached to any foreign-currency
Rating:Essay Length: 906 Words / 4 PagesSubmitted: December 7, 2009 -
Foreign Exchange Rate Sensitivity and Stock Price : Estimating Economic Exposure of Turkish Companies
FOREIGN EXCHANGE RATE SENSITIVITY AND STOCK PRICE : ESTIMATING ECONOMIC EXPOSURE OF TURKISH COMPANIES INTRODUCTION Variability in exchange rate is a major source of macroeconomic uncertainity affecting firms. After the 1970’s, the rapid expansion in international trade and adoption of floating exchange rate regimes by many countries led to increase exchange rate volatility. The firm’s exposure to exchange rate risk increased. In the literature three types of exposure under floating exchange rate regimes are identified;
Rating:Essay Length: 1,640 Words / 7 PagesSubmitted: December 8, 2009 -
Exchange Rates
Global Economic Issues Assignment Exchange Rates Question 1 Explain why the exchange rate is such an important ‘price’ in terms of the impact it can have on a country’s economic system. The exchange rate is an important ‘price’ in terms of the impact it can have on a country’s economic system. It can have an affect or be affected by many parties. Some for example, unemployment, inflation, growth and the trade balance between imports and
Rating:Essay Length: 1,436 Words / 6 PagesSubmitted: December 11, 2009 -
The Australian Exchange Rate
The Australian Exchange Rate By: Dontae Smith Introduction: What factors affect the demand and supply of Australian dollars in the foreign exchange markets? Distinguish between the possible causes and effects of currency depreciation and a currency appreciation on the Australian economy. What forces have come into play, if any, in the past four months that have affected the value of the Australian dollar? Exchange Rate: "The rate at which one unit of domestic currency is
Rating:Essay Length: 1,218 Words / 5 PagesSubmitted: December 20, 2009 -
Factors That Determine the Currency Exchange Rates
Factors that Determine the Currency Exchange Rates Exchange rate is often referred to as the nominal exchange rate. It is defined as the rate at which one currency can be converted, or 'exchanged', into another currency. For example, the pound is currently worth about 1.824 US dollars. One pound can be converted into 1.824 dollars. This is the exchange rate between the pound and the dollar. There are four types of currencies can be operated,
Rating:Essay Length: 1,709 Words / 7 PagesSubmitted: January 2, 2010 -
Is China’s Exchange Rate Undervalued?
Recently China has come under increasing pressure to revalue its currency, the Renmbini (RMB) from US policy makers. Indeed, in July 2005 China succumbed to the pressure with a revaluation of roughly two percent. This quieted the objections for a few months; however US politicians are again applying pressure on China to further revalue the RMB. Concern relating to the ballooning US current account deficit is the major motivation for the political posturing. The US’s
Rating:Essay Length: 1,216 Words / 5 PagesSubmitted: January 6, 2010 -
Global Financing and Exchange Rate Mechanisms Paper
Global Financing and Exchange Rate Mechanisms Paper Counter-trade Counter-trading is defined as the exchanging of goods or services that are already paid for, in whole or part, with other goods or services. (Wikipedia [W], 2007) Another way that you could think about counter-trading is by thinking about bartering. Bartering is very much like counter-trading as you are trading services or goods for the same in return. Speaking of bartering, that is actually one of the
Rating:Essay Length: 660 Words / 3 PagesSubmitted: January 25, 2010 -
Real Exchange Rate Stabilisation and Managed Floating: Exchange Rate Policy in India
Real Exchange Rate Stabilisation and Managed Floating: Exchange Rate Policy in India, 1993-99 Renu Kohli* The paper examines the exchange rate management strategy of the Indian central bank after the shift to a floating exchange rate regime in 1993. A policy reaction function tests for its intervention behaviour and finds significant effort to lean against the wind during 1993-99. This is tempered with purchasing power parity considerations as evidenced by the central bank’s response to
Rating:Essay Length: 682 Words / 3 PagesSubmitted: February 18, 2010 -
Analysis of a Chosen Exchange Rate Trend Exchange Rate Under Analysis: Euro Against Polish Zloty
Analysis of a chosen exchange rate trend Exchange rate under analysis: Euro against Polish Zloty (EUR/PLN) The trend period under analysis: 1/12/2006 – 28/02/2007 (3 months) Introduction Following an approximate three-month trend of the Euro depreciating against the PLN up to the beginning of December 2006, the next period of over 2 months is of an upward trend. I will be analysing this upward trend and its causes, followed by a turnaround of the general
Rating:Essay Length: 2,216 Words / 9 PagesSubmitted: February 20, 2010 -
Global Financing and Exchange Rate Mechanisms Paper
Global Financing and Exchange Rate Mechanisms Paper In this paper I will examines tariff and non-tariff policies that restrict trade between countries in agricultural commodities. Many of these policies are now subject to important disciplines under the 1994 GATT agreement that is administered by the World Trade Organization (WTO). The paper is organized as follows. First, tariffs, import quotas, and tariff rate quotas are discussed. Then a series of non-tariff barriers to trade are examined,
Rating:Essay Length: 753 Words / 4 PagesSubmitted: February 23, 2010 -
Global Financing and Exchange Rate Mechanisms
Running head: Global Financing and Exchange Rate Mechanisms Global Financing and Exchange Rate Mechanisms Global Financing and Exchange Rate Mechanisms Who really benefits from tariffs? “A tariff is a tax on foreign goods upon importation.” (Wikipeidia, 2007) When a ship arrives in port a customs officer inspects the contents and charges a tax according to a tariff formula. Since the goods cannot be unloaded until the tax is paid, it is the easiest tax
Rating:Essay Length: 732 Words / 3 PagesSubmitted: March 12, 2010 -
The Exchange Rate Mechanism (erm)
5.2 Problems in a fixed exchange rate system: The collapse of the ERM. Examine the causes of the collapse of the ERM in 1992. In so doing demonstrate your understanding of the following: uncovered interest parity condition; international capital mobility; the difference between the nominal and the real exchange rate; how to analyze an asymmetric aggregate demand shock to the country setting monetary policy in a fixed exchange rate arrangement. What does the open economy
Rating:Essay Length: 1,517 Words / 7 PagesSubmitted: March 20, 2010 -
The Effect of Exchange Rate Changes on Hedge Funds’ Net Asset Value
I. Introduction According to economic theory, an investment strategy based on exploiting differences in interest rates across countries should yield no predictable profits. The economic theories that link exchange rates, price levels, and interest rates together are called international parity conditions. According to the uncovered interest rate parity (UIP), the difference in interest rates between two countries reflects the rate at which investors expect the high-interest-rate currency to depreciate against the low-interest-rate currency. According to
Rating:Essay Length: 2,103 Words / 9 PagesSubmitted: March 22, 2010 -
The Exchange Rate in Europe
Long Term Advantages of a high exchange rate: There are certainly several advantages to keep the Euro (EUR) at a high level compared to the US Dollar (USD): Import Strength: The fall of the USD versus the EUR will cause a shift in the import/export balance between Europe and the US. Given the relative higher purchasing power of the EUR, it enables the EUR users to import goods cheaper from the US and therefore imports
Rating:Essay Length: 1,160 Words / 5 PagesSubmitted: March 26, 2010 -
Global Financing and Exchange Rate Mechanisms Paper
Global Financing and Exchange Rate Mechanisms Paper Global finance operations include financial procedures, such as accounting, financial planning and analysis, strategic planning, treasury, investor relations, and financial compliance. Exchange rate is the existing market cost for which one currency can be exchanged for another (Moffatt, n.d.). For instance, when the U.S. exchange rate for the Japanese Yen is Ґ1.10, this means that 1 American Dollar can be exchanged for 1.1 Japanese Yen. The purpose of
Rating:Essay Length: 855 Words / 4 PagesSubmitted: April 7, 2010 -
Prices, Interest Rates, and Exchange Rates in Equilibrium
“Prices, Interest Rates, and Exchange Rates in Equilibrium” (International Parity Conditions) Table of Content Executive Summary………………………………………………………3 1. Introduction………………………………………………………….4 2. Literature Review……………………………………………………6 3. Findings and Analysis: ………………………………………………10 a. PPP………………………………………………..…………10 b. FE……………………………………………..……………..12 c. IFE…………………………………………..……………….14 4. Conclusion & Recommendations …………….……..………………16 Bibliography……………………………………………………………….17 Appendix A. Historical Data………………………………………………18 Table of Figures Figure 1. International Parity Conditions Figure 2. Scatter Diagram for PPP Figure 3. Time-series data for inflation rates differential and exchange rate change Figure 4. Regression Plot for PPP Figure
Rating:Essay Length: 730 Words / 3 PagesSubmitted: May 6, 2010 -
Global Financing and Exchange Rate Mechanisms-Countertrade
RUNNING HEAD: Global Financing and Exchange Rate Mechanisms Global Financing and Exchange Rate Mechanisms-Countertrade Alyson Anderson University of Phoenix Online MGT 448/Global Business Strategies Dr. Richard Dool October 15, 2006 In pre-monetary societies, the most logical way of managing the material needs of a community was to distribute goods by bartering among the members according to need and surplus production. For example, if one family or group grew corn but another raised sheep, items
Rating:Essay Length: 327 Words / 2 PagesSubmitted: May 8, 2010 -
History of Foreign Exchange Rates
History of Foreign Exchange Rates The Gold Standard (1876 – 1913) ? Gold has been a medium of exchange since 3000 B.C. The "rules of the game" were simple; each country set the rate at which its currency unit could be converted to gold. So the currency exchange rates were in effect "fixed." But, expansionary monetary policy was limited to the government's supply of gold. ? The Gold Standard was in effect until the outbreak
Rating:Essay Length: 898 Words / 4 PagesSubmitted: May 5, 2011 -
The Political Economy of Exchange Rates
References Bearce, D. 2003. Societal preferences, partisan agents, and monetary policy outcomes. International Organization, 57: 373–410. Bernhard, W., Broz, J. L., and Clark, W. R. 2003. The Political Economy of Monetary Institutions. Cambridge, Mass.: MIT Press. and Leblang, D. 1999. Democratic institutions and exchange-rate commitments. International Organization, 53: 71–97. Broz, J. L. 1997. The domestic politics of international monetary order: the gold standard. Pp. 53–91 in Contested Social Orders and International Politics, ed. D. Skidmore.
Rating:Essay Length: 517 Words / 3 PagesSubmitted: May 7, 2011 -
How the Exchange Rate Will Respond When the Domestic Money Supply Decrease Happened Permanently and Anticipated
How the Exchange Rate Will Respond When the Domestic Money Supply Decrease happened Permanently and Anticipated Since the post-second World War, an enormous capital markets have been developing rapidly, in this condition, more and more international investors would like to switch a huge amount of currency into another based on the expected rate of return of being in one currency compared to another (Pilbeam K, 2006:148). Nowadays, the exchange rate is among the most active
Rating:Essay Length: 1,579 Words / 7 PagesSubmitted: May 10, 2011 -
Trade Deficit Effects on Exchange Rates
CHAPTER 4 10. (2 Points) Trade Deficit Effects on Exchange Rates. Every month, the U.S. trade deficit figures are announced. Foreign exchange traders often react to this announcement and even attempt to forecast the figures before they are announced. a. Why do you think the trade deficit announcement sometimes has such an impact on foreign exchange trading? ANSWER: b. In some periods, foreign exchange traders do not respond to a trade deficit announcement, even when
Rating:Essay Length: 789 Words / 4 PagesSubmitted: May 14, 2011 -
Exchange Rate and Transaction and Translation Exposure
1. Analyze the major effects that relative interest and inflation rates could have on a country’s currency. Suggest the crucial steps that a company could take in order to minimize the adverse effects of currency fluctuations. 2. Evaluate the efficiency of two (2) of the most common currencies / foreign exchange derivatives that companies use in order to minimize translation and transaction exposure. Give one (1) example of an instance where entities such as MNCs,
Rating:Essay Length: 600 Words / 3 PagesSubmitted: July 20, 2014 -
U.S. Energy Prices and Canadian to U.S. Exchange Rate
5. Canada is one of the largest oil exporters. Result from data shows how energy prices in the U.S. influences the value of Canadian dollars to one US dollar. The study shows a strong relationship between U.S. energy prices and Canadian to U.S. exchange rates which suggests movement in energy prices serves as a forecast for the Canadian dollars. From the graph, energy prices expressed in U.S. Consumer Price Index and the value of Canadian
Rating:Essay Length: 651 Words / 3 PagesSubmitted: January 16, 2017