Ch7SlidesAndNotesBus187 - LEARNING OBJECTIVES After...

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LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. undeEtand the determinants of foreign exchange rates 2. track the evolution of the international monetary system 3. identify firms'strategic repons to deal with foreign exchange movements 4. participate in three l€ding debat6 on foreign exchange movemsts 5. draw implicataons for action FACTORS BEHIND FOREIGN EXCHANGE RATES foreign exchange rate - price of one currency in terms of another purchasing power parity - theory that suggests that in the absence of trade barries (such as tariffs), the price for identical products sold in different countries must be the same balance of payments - country's international transaction statement EEffilirunrs c xircrnnr-Hcr exciirce nms I EiEi.:ll'ttl BF B)G MAc rND€r [ *"AT DE RMTNEs FoRErcN CHANGE ATES? itf:;l'.;'',"Il"{ i: -'>jiii\ r;1. ir\Tiiri. :;li.!.t€:i.r'h:.':;i;ll1;.,:1=l':;i ffi
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[email protected] ntnar cr nr us oar,cfi 0t,r5r0E .tHE ufl mD rrnris Voli," et:rBl\':abi:{iJdni$ti rrlati i).la.iPjFrri(.iil r:to'; c,r. Ft :1 j,r+:?:.ii ^-.n-D\,;r r "t .\ : r:.,-l rr e,i=g: - . : ::\- , dt'ertrlmt:il.',:ni9.:SJd:":'1g. .{::lr'rr,r'rr$rr-r,1.-r hFtgllhiuFf, rt*w ll.r eTEnld !\r :.utri 1e :v rumm i l: dee ^ Lh:ertr:r5'fi .,ialFi14ii,:-.r'2:crritsf tlrrz.irli:: v{{ i :.1": l 'r.:5 !m l;e.;'ainr;,': ir':- :. l r ::: r.r. .rr :i : . ;: nird:' e. t{htc ru'., Jf:i atl:,;i6 G5 Veid€ @F1 sud a:+6rultral:ni dx r--I iorm, ilt+r\ugr dl las jhr ;a[:zr,o;ctlaro.lrtl'ol*r; rlr+rrn Exchange Rate Policies floating (or flexible) exchange rate policy - willingns of
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This note was uploaded on 09/08/2010 for the course BUS 187 at San Jose State.

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Ch7SlidesAndNotesBus187 - LEARNING OBJECTIVES After...

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