Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency in the whole or some parts of currency function. Nowadays‚ dollarization has become popular all over the world. 2 Classification ← Official dollarization Official dollarization occurs when foreign currency is only legal currency in the economy. This means that foreign currency is not only used in legal contracts between private parties
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References: Nidhi Singh (2007) “Rupee Appreciation: Sectoral Impact on Exports and Imports”‚ ICAI journal‚ June. C.R.L.Narsimhan (2003) “Rising Rupees Hidden Massage”‚ The Hindu‚ April 3 2003. Shankar Acharya (2007) “Exchange Rate Policy” ‚ Business Standard‚ April 26. Amit Kapoor (2007) “Rising Rupee and India Growth Story”‚ The Economics Times‚ August 29. 273 www.zenithresearch.org.in ZENITH International Journal of Business Economics & Management Research Vol.2 Issue
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International operations motivation Answer: e Diff: E . Which of the following are reasons why companies move into international operations? a. To take advantage of lower production costs in regions of inexpensive labor. b. To develop new markets for their finished products. c. To better serve their primary customers. d. Because important raw materials are located abroad. e. All of the statements above are correct. Multinational financial management Answer: d Diff: E . Multinational
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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 influence on the currency exchange rate. There are three main type of the exchange rate regime: • a floating exchange rate‚ where the market dictates the movements of the exchange rate‚ • and the
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EX.NO: FOREIGN TRADING SYSTEMDATE:SRSINTRODUCTION This project emphasizes about the Foreign Trade System which is an interface between the Accountholder and the market. In the initial phase details about the various currencies and the profit and loss of currency hold is collected PROBLEM STATEMENT: The practice of currency trading is also commonly referred to as foreign exchange‚ Forex or FX for short.All currency has a value relative to other currencies on the planet. Currency trading
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some instances. Globalization is the process of international integration arising from the interchange of world views‚ products‚ ideas‚ and other aspects of culture. Put in simple terms‚ globalization refers to processes that advance world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure‚ including the rise of the Internet‚ are major factors in globalization‚ generating further interdependence of economic and cultural activities.
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Currency Futures are standardised foreign exchange derivative contracts on a recognised stock exchange to buy or sell a standard quantity of one currency against another on a specified future date at a specified price. It allows clients to take a view on the movement of the exchange rate as well as hedge against currency risk. Clients can use Currency Futures as a trading‚ investing and hedging tool.The Reserve Bank of India (RBI) has permitted the recognized stock exchanges to offer Currency Futures (CF)
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Detailed Reading List Lecture 1: Globalisation‚ Multinational Enterprises and International Monetary System On Globalisation‚ MNEs and Corporate Governance: Textbooks: ESM‚ Ch. *1 and *2 OR ER‚ Ch. 1 and Ch. 4. On the International Monetary System and Exchange Rate Regimes: Textbooks: ESM‚ Ch. *3 (except the section on the Euro) OR ER‚ Ch. 2 (except the section on the EMU). Pilbeam‚ Ch. 10 (Sections 10.1-10.3) and 11 (Sections 11.13-11.14) Papers: * Levy-Yeyati‚ E. and Sturzenegger‚ F. (2003)‚ “To Float
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UNIT - I Foreign Exchange Markets A Foreign exchange market is a market in which currencies are bought and sold. It is to be distinguished from a financial market where currencies are borrowed and lent. General Features Foreign exchange market is described as an OTC (Over the counter) market as there is no physical place where the participants meet to execute their deals. It is more an informal arrangement among the banks and brokers operating in a financing centre purchasing and selling currencies
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BIS WORKING PAPERS No 93 – October 2000 TRADING VOLUMES‚ VOLATILITY AND SPREADS IN FOREIGN EXCHANGE MARKETS: EVIDENCE FROM EMERGING MARKET COUNTRIES by Gabriele Galati BANK FOR INTERNATIONAL SETTLEMENTS Monetary and Economic Department Basel‚ Switzerland BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements‚ and from time to time by other economists‚ and are published by the Bank. The papers are on subjects of topical
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