MGC2120 Chapter Notes - Chapter 10: Technical Analysis, Fundamental Analysis, Nominal Interest Rate

• School: Monash University
• Department: Management
• Course: MGC2120
• Professor: Dr Lakmal Abeysekera

Document Summary

International business chapter 10 the foreign exchange market. Insuring against foreign exchange risk. The functions of the foreign exchange market. Foreign exchange market market for converting the currency of one country into that of another country. When a tourist changes one currency into another, she is participating in the foreign exchange market. Tourists are minor participants in the market. Companies engaged in international trade and investments are major ones. Carry trade is a kind of speculation that has become more common in recent years. It is often on a minute- by- minute basis. It is transacted between international businesses and their banks, etc. it is not located in one place. It is a global network of banks, brokers, and foreign exchange dealers connected by electronic communications systems. Two features of the market: 1) market never sleeps 2) the integration of the various trading centers. Another feature is the important role played by the.