About This Chapter
Exchange Rate Determination & Forecasting - Chapter Summary
Learn how to determine and forecast exchange rates with this helpful collection of international business lessons. Inside the chapter, you'll study the effects of currency changes and examine types of fiscal and monetary policies. These lessons are taught by expert business instructors who craft each lesson to highlight the most important definitions and concepts. This way, you can review quickly and efficiently. We've included lesson transcripts and quizzes to help you see how well you understand the information covered. You can access these lessons at any time and study wherever and whenever it's convenient. After finishing this chapter, you should be able to:
- Explain foreign currency exchange
- Evaluate how changes in currency affect imports and exports
- Calculate exchange rates across countries
- Measure the effects of exchange rate changes on currency appreciation and depreciation
- Consider how fiscal and monetary policies affect exchange rates
- Compare different methods of exchange rate forecasting
1. Foreign Currency Exchange: Supply and Demand for Currency
In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.
2. How Currency Changes Affect Imports and Exports
Learn about how currency changes can affect imports and exports. Find out how this affects you. Discover what happens when a dollar is strong compared to other currencies and what happens when it is weak.
3. Exchange Rate: Determination and Conversion Across Countries
Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.
4. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes
Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.
5. How Fiscal and Monetary Policies Affect the Exchange Rate
Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.
6. Different Methods of Forecasting Exchange Rates
Investors and traders use several forecasting models in the course of decision-making; this includes investing in foreign markets. This lesson will cover methods for forecasting exchange rates.
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Other chapters within the Business 320: Advanced International Business course
- Globalization & International Business
- Organizational Structure & Communication
- Understanding Global Economic Environments
- World Trade Organization
- Entering the Global Marketplace
- Regional Integration
- International Trade Theory & Policy
- Global Money System
- Factors of Economic Growth & Development
- Foreign Direct Investments
- Balance of Payments
- International Business Strategy
- Crisis Management & International Business
- International Business Ethics