AS.180.101 Chapter Notes - Chapter 18: Foreign Portfolio Investment, Foreign Exchange Market, Capital Outflow

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18 Feb 2016
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18 macro reading: macroeconomics in an open economy. Mcdonald"s has franchises: businesses with legal right to sell good/service in a particular area. Mcdonald"s has grown by expanding in foreign markets receives revenue in many different currencies so company"s profits are directly affected by fluctuations in value of dollar in exchange for other currencies. 2012: mcd"s profits increased globally by 6. 3% but measured in terms of dollars their profits fell by . 7%--discrepancy b/c value of dollar increased relative to other currencies, so converting them into dollars yielded fewer dollars. Look at linkages among countries at macroeconomic level. Countries linked by trade in goods and services and by flows of financial investment. See how policymakers take linkages into account when conducting monetary and fiscal policy. The balance of payments: linking the us to the international. Intro: nearly all economies are open economies (an economy that.

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