IBUS2301 Study Guide - Final Guide: Hong Kong Dollar, Foreign Exchange Market, Foreign Exchange Risk
Document Summary
Monetary system viernes, 13 de abril de 2018. Lo 4. 1 explain the forces that influence exchange rates. Lo 4. 2 outline the nature and functions of foreign exchange markets, and the international monetary system and its institutions. Lo 4. 3 assess the effectiveness of different exchange rate regimes in reconciling national policy goals and the goal of international monetary stability. Lo 4. 4 demonstrate the impact of exchange rates on international business decisions. Lo 4. 5 recommend strategies that international business can use to reduce foreign exchange rate risks. A market for converting the currency of one country into that of another country. The rate at which one currency is converted into another. http://www. xe. com/ The risk that arises from changes in exchange rates. Most international business (imports, fdi, lending, shares, etc) requires currency exchange. Foreign currency transactions are mostly conducted through the forex market. Foreign exchange market sets spot exchange rates for floating currencies (eg aud1= usd 76. 83 cents)
