COMM 220 Chapter Notes - Chapter 19: Excess Supply
Document Summary
When canadian dollar falls in value, foreign goods become more expensive for. : the price of one currency in terms of another (highly volatile) Canadians and canadian goods become cheaper for foreigners. When canadian dollar rises in value, foreign goods become cheaper for canadians and. : the financial market where exchange rates are determined. There are two kinds of exchange rate transactions: spot transactions and forward. : the exchange of assets at some specified future date. : the exchange rate for the spot transaction. : the exchange rate for the forward transaction. : when a currency increases in value relative to other currencies. : when a currency falls in value relative to other currencies. Exchange rates are important since they affect the relative price of domestic and foreign. E. g. the price of french goods to a canadian is determined by two things: The price of french goods in euros.