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?
Explanation & Answer
Attached.
Running Head: HOW MARKETS WORKS
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How Markets Works
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HOW MARKETS WORKS
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According to Gertler & Hubbard (1988), trends are what allow investors and traders to
attain profits. Whether on a long or short term setting, in an overall ranging environment or
trending market, the flow from a specific price to another is basically what makes losses and
profits. However, there are several major factors that trigger both short-term and long-term
fluctuations both in global and domestic level. In that case, these factors are international
transactions, supply and demand, governments, and speculation and expectations.
To start with international transactions, it should be noted that the strength of any
country’s economy including its currency is highly impacted by the funds flow between
countries. In that case, if a lot of money is leaving a country then the currency and...
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