Topic: The effects on China’s economy due to fluctuation of exchange rate. 1. Introduction China’s economy is huge and expanding rapidly. In the last 30 years‚ the rate of Chinese economic growth has been almost miraculous‚ averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period‚ with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts
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the demise of the Zimbabwean dollar. In 2008 in an 18-month ‘experiment’‚ foreign currency was accepted as legal tender for transactions with a set number of retailers. “Honorable Members will be aware that in the hyper-inflationary environment characterizing the economy at present‚ our people are now using multiple currencies for day to day business transactions‚ alongside the Zimbabwe dollar. These currencies include the South African Rand (ZAR)‚ United States Dollar (USD)‚ Botswana Pula (BWP)
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less profit and earn less money. Consequently‚ U.S companies will pay fewer dividends for investors who invest in these companies. So‚ investors will tend to invest in foreign securities where they can get higher dividend. On the other hand‚ a weak currency can reduce unemployment but maybe it can lead to high inflation‚ and simultaneously it may reduce U.S imports and boost U.S exports or buy more goods than it sells abroad (imports exceed exports). Another thing‚ in the long run‚ trade deficits may
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is a currency board system‚ which requires both the stock and flow of the monetary base to be fully backed by foreign reserves. It is the exchange rate system implemented in Hong Kong to stabilize the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD). This means that any change in the monetary base is fully matched by a corresponding change in foreign reserves at a fixed exchange rate. (1)(2) The Hong Kong Monetary Authority (HKMA) is Hong Kong ’s currency board
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ASB-1200 Business Study Skills Assignment 2: Individual Report (50%) This report provides an analysis and evaluation of the current and prospective profitability of Austria. The data will be used to advise a US-based multinational company that manufactures and sells its products in a number of other countries. Methods of analysis will include the extensive analysis of valid secondary economic data‚ regarding economic indicators ranging from GDP to population size. Economic indicators are
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have currencies different from each others. It means that their values are not the same‚ and they change every time. So‚ firms have to take into account this problem‚ because it could no be easy at all. The aim of this essay is to understand the problem of exchange rate. In order to answer to this problematic‚ various topics will be analysed. First‚ the concept of exchange rate will be defined to understand well the topic‚ then a summary of the movements of the four most used currencies‚ Dollar
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Bretton Woods Conference The Background During the World War I and World War II the international monetary system is split into several competing currency blocs‚ the fierce trade war between the global recession and nation. In the post-World War II‚ at the end of World War II‚ the U.S. dollar has enjoyed a unique and powerful position in international trade and also because British and American governments for consideration of national interests‚ ideas and design of post-war international monetary
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Until 1997‚ Asia attracted almost half of the total capital inflow into developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return. As a result the region’s economies received a large inflow of money and experienced a dramatic run-up in asset prices. At the same time‚ the regional economies of Thailand‚ Malaysia‚ Indonesia‚ Singapore‚ and South Korea experienced high growth rates‚ 8–12% GDP‚
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Definition: The foreign exchange market can be defined as the collective activity of exchanging currencies i.e. where currencies are bought and sold. The price for the currency is known as the exchange rate. This is one unique market that is not located anywhere but exists on electronic platforms – telephones‚ telex‚ internet and other electronic gadgets. The reality of today is that most convertible currencies offer a 24-hour access for market participants. This unique feature has brought with it
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acquisition. She has to keep in mind Tirstrup has 30 million in cash‚ they earned 163 million from a sale and the priorities are not to issue additional equity of convertible shares. QUESTIONS Question 1: Which of the many debt characteristics – currency‚ maturity‚ cost‚ fixed versus floating rate – do you believe are of the highest priority for Julie and Tirstrup? According to the case study‚ Julie Harberj is assembling a proposal pertaining to the financing requirements for the acquisition of
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