--%>
Assignment Help - homework help

Joining the euro-the effect on the exchange rate

‘How is the equilibrium £:€ exchange rate presently determined? When UK was aiming to adopt the euro in the next to future we would be predicted to ‘shadow’ the euro for a while (the £:€ exchange rate would change merely among very narrow margins). How can this be attained?’

E

Expert

Verified

Making an understanding of the foreign exchange markets. The practice considers how demand and supply analysis can be related to this market and how equilibrium is attained beneath floating and fixed exchange rates.

   Related Questions in International Economics

  • Q : Influence of demand in exchange rate If

    If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in

    		•
  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

    		•
  • Q : Indian economic what are the key

    what are the key callenges to indian economic development

    		•
  • Q : Survey regarding Trade policy Find a

    Find a recent survey about a trade policy issue and assess it, examining the structure of the questions and the target audience. Verify the sample size, assess the methods used to administer the survey and analyze results, identifying the confidence around the results

    		•
  • Q : What is managed floating exchange rate

    Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.

    		•
  • Q : Components of capital account of

    Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.

    		•
  • Q : Problem regarding Comparative advantage

    Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency

    		•
  • Q : Economic environment in Australia and

    Explain the Economic environment in Australia and Internationally and their factors which affect them?

    		•
  • Q : Supply of foreign exchange Explain how

    Explain how foreign exchange rate is determined beneath flexible exchange rate system. Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equival

    		•
  • Q : Lone mill mine What challenges are

    What challenges are facing lone mill mine and what strategies can be used

    		•