Access over 20 million homework & study documents

search

MBA FP 6008 McAndrewVanessa Assessment5 Attempt1

Content type
User Generated
Rating
Showing Page:
1/7
Running head: INTERNATIONAL TRADE: ECONOMIC ANALYSIS 1
International Trade: Economic Analysis
Vanessa McAndrew
MBA- FP 6008 U05A1 International Trade: Economic Analysis
Capella University
Professor Dr David Wolfe
March 7, 2018

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/7
INTERNATIONAL TRADE: ECONOMIC ANALYSIS 2
International Trade: Economic Analysis
International trade can be defined as the exchange of goods, services, and capital between
two or more countries. International trade involves the mobility of particular goods, services, and
capital across international borders. The 21
st
Century has heralded the rapid growth of
globalization, which has resulted in increased international trade. The increased use of innovative
technology in trade has greatly reduced certain barriers to international trade leading to its
exponential growth. Advancement in technology has made international trade to be more
accessible for people across the world. In effect, the world is a global village anchored on strong
international trade and interactions (Frenkel & Johnson, 2013).
The Concept of Exchange Rates
An exchange rate may be defined as the price of one country’s currency about another
country’s currency. This, in essence, means that an exchange rate consists of two foundational
currencies, that is, domestic currency and foreign currency. An exchange rate can either be
expressed directly or indirectly. In direct quotation of an exchange rate refers to the expression of
the price of foreign currency in relation to the domestic currency whereas indirect quotation of
an exchange rate refers to the price of domestic currency in relation to a foreign currency
(Frenkel, 2010). Normally, an exchange rate will have a base currency and a counter currency.
How exchange rates are determined
The exchange rates of a particular country can be fixed or floating. In fixed exchange rate
jurisprudence, the government of a particular nation decides to ground their local currency on
another currency whereas demand and supply forces (Copeland, 2008) decide floating exchange
rates. When using fixed exchange rates, the Central Bank a particular country pegs its domestic

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/7

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 7 pages?
Access Now
Unformatted Attachment Preview
Running head: INTERNATIONAL TRADE: ECONOMIC ANALYSIS International Trade: Economic Analysis Vanessa McAndrew MBA- FP 6008 U05A1 International Trade: Economic Analysis Capella University Professor Dr David Wolfe March 7, 2018 1 INTERNATIONAL TRADE: ECONOMIC ANALYSIS 2 International Trade: Economic Analysis International trade can be defined as the exchange of goods, services, and capital between two or more countries. International trade involves the mobility of particular goods, services, and capital across international borders. The 21st Century has heralded the rapid growth of globalization, which has resulted in increased international trade. The increased use of innovative technology in trade has greatly reduced certain barriers to international trade leading to its exponential growth. Advancement in technology has made international trade to be more accessible for people across the world. In effect, the world is a global village anchored on strong international trade and interactions (Frenkel & Johnson, 2013). The Concept of Exchange Rates An exchange rate may be defined as the price of one country’s currency about another country’s currency. This, in essence, means that an exchange rate consists of two foundational currencies, that is, domestic currency and foreign currency. An exchange rate can either be expressed directly or indirectly. In direct quotation of an exchange rate refers to the expression of the price of foreign currency in relation to the domest ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Awesome! Perfect study aid.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4