• Currency Board
    Administrative Region Government is firmly committed to the maintenance of the linked exchange rate system and the adherence to the discipline of the Currency Board arrangements under that system.(2) No foreign exchange control policies shall be applied in the Hong Kong by Article 112 of the Basic Law....
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  • Critical Comparison of Fixed and Floating Exchange Rate Mechanisms
    will examine independently floating exchange rate arrangements and other conventional fixed peg arrangements in separate sections. Each section contains four parts: • An examination of the mechanics of the regime; • A discussion of its advantages and disadvantages; • An analysis of the experiences...
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  • Foreign Exchange
    4. FOREIGN EXCHANGE Foreign exchange refers to the trading of one country’s currency for another (foreign) currency. Trading takes place in the foreign exchange market where currencies are bought and sold by banks, foreign exchange brokers and other financial institutions. The rate at which...
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  • 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...
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  • Fixed vs Floating Interest Rate
    Subject: Fixed versus floating exchange rates Introduction The exchange rate regime The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. Each country has its exchange rate policy which determines the form of a government...
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  • Words for Global Strategy
    Global sourcing The tendency among firms to source goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of product E.g.) Samsung’s production base for manufacturing handsets in Vietnam E.g.) Apple’s relationship with LG Display...
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  • Exchange Rate Policy
    2 2. Exchange control and its uses 2 2.1 . Disadvantages of tightly managed exchange control 2.2 . Advantages of flexible exchange controls 2.3 . Disadvantages of flexible exchange controls 3. Emerging markets and exchange control 3 4. South Africa and exchange controls...
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  • Essay
    Q. What are the advantages and disadvantages of Flexible Exchange Rates? Advantage of Flexible Exchange Rates Following are the advantages of flexible exchange rate: Independent Monetary Policy: Under flexible exchange rate system, a country is free to adopt an independent policy to conduct properly...
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  • Exchange Rate Mechanisms
    INTRODUCTION An exchange rate is the price at which one country's currency must pay in order to buy one unit of another county’s currency on the foreign exchange market. The concept of exchange rate mechanism may be explained as the technique employed by the governments in order to manage and control...
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  • Study Q
    Payments and the intervention if foreign exchange market. Balance of payments: Current account + capital account = net change in government international reserves. The current account balance tells us whether the United States is increasing or decreasing its claim on foreign wealth. A surplus indicates...
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  • Explain how the International Gold Standard that emerged in the half-century before 1914 can be interpreted as a system of ‘fixed exchange rates’
    Gold Standard that emerged in the half-century before 1914 can be interpreted as a system of ‘fixed exchange rates’. Hence discuss the advantages and disadvantages of the Gold Standard as a policy regime. The International Gold Standard that emerged during the late nineteenth century and continued through...
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  • financial markets
    FOREIGN EXCHANGE MARKET Money markets are the financial markets where short-term financial assets are bought and sold. By definition, the financial assets, such as stocks and bonds that are traded in these markets will mature in one year or less. Over a billion dollars in transactions take place in...
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  • The Costs and the Benefits of Hong Kong’ Currency Board System
    reserves of commercial banks and a currency board is a monetary institution that issues notes and coins (and, in some cases, deposits) fully backed by a foreign "reserve" currency and fully convertible into the reserve currency at a fixed rate and on demand. S b c d e f g w se f s f s f s f s f s f s Does...
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  • Currency Devaluation and Its Effects on the Economy. Focus on Argentina.
    1999/2001 period 2 1.1 Previous Devaluation Process in Argentina 2 2. First moments of devaluation 3 2.1 Fixed exchange rate vs. floating exchange rate regimes 3 2.2 Two types of exchange rates and free floating currency 5 2.2 Free floating currency 6 3. Effects of Devaluation process on 6 3...
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  • International Monetary System
    The International Monetary System Jiawen Yang As Samuelson and Nordhaus point out, while the simple supply-and-demand diagrams for the foreign exchange market explain the major determinants, they do not capture the drama and central importance of the international monetary system (2005, p. 609). The...
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  • Global Banking and Finance Exam Q & a
    There are three primary attributes of an ideal currency: - Exchange rate stability: The value of the currency would be fixed in relationship to other major currencies, therefore traders and investors could be relatively sure of the foreign exchange value of each currency in the present and into the near...
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  • Relationship Between Inflation and Exchange Rate
    between inflation and exchange rate The existence of linkages between the level of the exchange rate and the rate of inflation has been more commonly established in the theoretical literature. Using this definition, we can show the link between inflation and exchange rates. What is exchange rate and what is...
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  • Business Decision Analysis
    An exchange rate is the rate at which one currency can be exchanged for another. In other words, it is the value of another country's currency compared to that of your own. If you are travelling to another country, you need to "buy" the local currency. Just like the price of any asset, the exchange rate...
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  • The World Economy
    evaluation of some key areas of the global economy, mostly international trade and the role of trade organisation; analysis of UK balance of payments and exchange rate regiments. The submission date for the report is 16 December 2010. 2. PROCEDURES 1. Analysis of Learning Outcome 1, 2 and...
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  • China Currency Exchange Rate
    Question 4a The currency regime adopted by China is neither fixed nor flexible exchange rate system. China has announced in 2005 the “end of its firm peg against the dollar, instead allowing it to trade within a narrow band against a basket of currencies.” China regime is managed floating system where...
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