The current state of the US macroeconomy is not as strong as it has been in the past. The cost of living is high‚ imports are high‚ and the overall economy is suffering. Businesses are suffering because it is cheaper to import goods than it is to produce them in the US. With this in effect‚ the GDP is suffering as well. Even with the tariffs and quotas that the government has put on these items coming into the country‚ it is still cheaper to purchase from overseas. The macroeconomy of the US is suffering
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Coffee etc b) Energy Based- Crude Oil‚ Heating Oil‚ Natural Gas etc 1 2. Bullions Market- It deals with Gold‚ Silver‚ Copper‚ Platinum and Palladium. 2 3. Forex Market- it is also a 24-hour market. It deals with the following currencies: US Dollar (USD)‚ Swiss Franc (CHF)‚ Australian Dollar (AUD)‚ Japanese Yen (JPY)‚ Great Britain Pound (GBP)‚ Euro (EUR). It gives an opportunity to trade in the following major exchanges:- * NEWYORK BOARD OF TRADE (NYBOT) * CHICAGO
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with fixed currency exchange rates. This gold standard remained in effect until the start World War 1. Most of the countries restored the prewar gold exchange practice‚ without considering the gold parity in terms of price as compared to the prewar rates. This resulted in lower ratio of value of gold exchanged‚ and subsequently a shortage in gold reserves and widespread use of foreign currency exchanges. The basic conflict to maintain gold standard was to minimize the risk of currency devaluation
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following‚ exchange rates depend the most upon relative a) monetary systems b) political systems c) trade deficits d) inflation rates between nations Ans: d Section: The nature of money and currency values Level: Easy 2.4 ______ is another name for the complete replacement of the local currency with the U.S. dollar. a) Seignorage b) Dollarization c) Depreciation d) Appreciation Ans: b Section: Dollarization Level: Easy 2.5 To some U.S. manufacturers and labor unions‚ a cheap yuan
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for whom‚ and why? 4. Key issues: a) Were the increased costs due to currency fluctuations covered by the open-price term? b) Had the exchange rate risk had rendered performance under the contract commercially impracticable? 5. Reasons: a) In theory‚ the currency fluctuation may be covered by the open-price term when both two parties use different kinds of currency. However‚ in this case‚ the currency fluctuation may not be covered by the open-price term in the contract between
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fluctuations in currency exchange rates is called: (Points : 1) hedging. transaction exposure. the direct quote. floating. None of the above Question 2. 2. In an options market hedge there is the option to sell or purchase certain currencies at a certain exchange rate either on or before a certain date. The agreed-upon exchange rate is called the: (Points : 1) international leverage. trade dimension. leveraging currency.
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make use of the same currency as well. The biggest advantage of having the Euro zone is that the member countries can trade among themselves without having to face the risk of exchange rates. As the countries use the same currency‚ there is no problem of exchange rate. This not only facilitates trade for these countries but also makes their position stronger in the market by strengthening Euro. The international trade also increases with the adoption of one single currency and attracts more of international
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B Diff: 1 Topic: 9.1 Types of Foreign Exchange Exposure Skill: Recognition 5) ________ exposure is the potential for accounting-derived changes in owner ’s equity to occur because of the need to translate foreign currency financial statements into a single reporting currency. A) Transaction B) Operating C) Economic D) Accounting Answer: D Diff: 1 Topic: 9.1 Types of Foreign Exchange Exposure Skill: Recognition 8) MNE cash flows may be sensitive to changes in which of the following? A)
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Think prices to the customers Think affordability to customers Think economic growth in the country Currency Identify the currency we have within the UK compared to the currency in Germany. What benefits/ drawbacks does having the (£) mean for Sub Xpress? Think about costs Think about raw materials and suppliers Think about the size of the impact of having the (£) as a currency In a second paragraph underneath What benefits/ drawbacks does having the Euro mean to BMW? Think transaction
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China’s perspective Chinese officials argue that their currency policy is not meant to favor exports over imports‚ but instead to foster economic stability through currency stability. The policy reflects the government goals of using exports as a way of providing jobs to Chinese workers and to attract Foreign Direct Investment (FDI) in order to gain access to technology and know-how. Yuan exchange rate regime could affect China’s economic growth also can through two aspects: the first is through
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