What are some of the issues that factor into the fluctuation of global and domestic markets?

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Economics

Description

When we look at the issue of the ability of markets to function (hopefully well) what are some of the issues that factor into the fluctuation of markets, both on a domestic and global level? How does this affect us on a daily basis?

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Explanation & Answer

Attached.

Running head: FLUCTUATION OF GLOBAL AND DOMESTIC MARKETS

Fluctuation of Global and Domestic Markets
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Institution

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FLUCTUATION OF GLOBAL AND DOMESTIC MARKETS

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Fluctuation of Global and Domestic Markets
Various factors may influence both domestic and global markets positively or negatively.
These factors include government policies, supply, and demand, currency exchange rate,
international transactions, and market expectations or speculations. Exchange rates influence the
flow of imports and exports. The issue arises when countries with high-valued currency import
cheaply while countries low-valued currency import expensively. Countries with lower exchange
rate are expected to have a better balance of trade as compared to th...


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