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Econ 372: International Economics
Dollar Rate Return on Asset
Return in exchange rate = $1.50 – $1.38
Return = $0.12 x 10% = 0.12 x 0.1
The Canadian Export Weighted Exchange Rates has been on a decreasing trend for the
five-year period. The same trend is noticed for all other country currencies in the table except for
the Korean export weighted exchange rate. On the other hand, the total trade weighted exchange
rates for the countries under research are on a similar decreasing trend since 2004 to 2009. This
trend is however not seen in Mexico and Korea.
Any country's financial market currency rate as modified against a floating currency
comprised of the financial assets of a country's dollar and other currencies. This makes it
possible for an Export Weighted Exchange Rates to be assessed even against currency pairs into
which it is most capable of converting instead of the economy in general. The stock market
influences the exchange shortage or surplus, that also influences t...