--%>
Assignment Help - homework help

What 2 points are required to emphasis foreign exchange

What 2 points are required to emphasis foreign exchange market?

E

Expert

Verified

Two points require emphasis with respect to these markets.

1. Real world foreign exchange markets are competitive, with large numbers of buyers and sellers dealing with a standardized product, the currency of some country.

2. Exchange rates link of one country’s domestic prices with all foreign prices.  They allow you to interpret the cost of foreign products into dollars.

For example, if the dollar/yen exchange rate is 1 cent/per yen, a Sony T.V. set priced at ¥20,000 will cost an American $200 = (20,000 x .01).

   Related Questions in Business Economics

  • Q : Illustrate the 4th role is the

    Illustrate the 4th role is the reallocation of resources?

    		•
  • Q : Meaning of Economic Development

    Question Discuss what "economic development" means in the context of this game? (Hint: How do you win, and what do you have at the end of the game that you did not have at the beginning of the game?)

  • Q : Difference between normal and inferior

    Difference between normal goods and inferior goods. Give illustration.

    		•
  • Q : Explain a refutation of the doctrines

    Adam Smith wrote his Wealth of Nations within part like a refutation of the doctrines: (1) classical liberalism. (2) utilitarianism. (3) mercantilism. (4) physiocracy. (5) laissez faire capitalism.

  • Q : Why producers not be able to find

    Why producers not be able to find enough paying buyers for “public goods”?

    		•
  • Q : What are patent rights Patent rights :

    Patent rights: It is a unique license or right granted to a company or an Individual to make a specific product or utilize a specific technology.

    		•
  • Q : The Federal corporate income tax Use

    Use the circular flow model to confirm this assertion for a 2% reduction in the Federal corporate income tax.

    		•
  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : Divide of the study of economics MOST

    The study of economics is MOST frequently divided within: (1) positive economics and negative economics. (2) macroeconomics and microeconomics. (3) subjective economics and objective economics. (4) supply side and demand side economics. (5) conservative economics and

    		•
  • Q : New firms entry in industry What

    What persuades new firms to enter in an industry? Answer: Abnormal profit encourages new firms to enter an industry. 

    		•