How are foreign exchange rates determined


Assignment:

1. How are foreign exchange rates determined? How do changes in interest rates, inflation, productivity, and income affect exchange rates? (150 minimum word count)

2. What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets? Who benefits from a tariff or quota? Who loses? (160 word count minimum word count)
Resource:

Colander, D. C. (2013). International Financial Policy (9th ed.). New York, NY: McGraw-Hill Company.

o Additional resources

https://analepsis.files.wordpress.com/2011/08/ha-joon-chang-bad-samaritans.pdf

https://mafhom.files.wordpress.com/2013/02/23-things-they-dont-tell-you-about-capitalism.pdf

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Microeconomics: How are foreign exchange rates determined
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