Question

The dollar’s value on international currency markets – what’s up, and is it a problem? (and/or:...

The dollar’s value on international currency markets – what’s up, and is it a problem? (and/or: why has the Mexican peso fallen in value?)

Homework Answers

Answer #1

The Mexican Peso can be mentioned as one of the worst performing currencies in the current day in the North America. It has fallen to the lowest since 2015 and it is because of various reasons. Let's consider the political reasons where renegotiation of NAFTA is done with which there rose certain implications of it and apart from that, the oil prices have also significantly effected the currency value. The expected decisions of Federal reserve and also the growth of United States has been slow and this is also one of the important reasons for fall in value of Peso. However many of the other major currencies have depreciated against the Peso which indeed made it less appealing.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Around 1900, a small town on the U.S.-Mexican border was experiencing a strange currency exchange situation....
Around 1900, a small town on the U.S.-Mexican border was experiencing a strange currency exchange situation. On the Mexican side of the border, a U.S. dollar was only worth ninety Mexican peso (1 USD = 0.90 MXN), while on the U.S. side, a Mexican peso was only worth ninety U.S. cents (1 MXN=0.90 USD). In other words, the citizens of both countries discounted the other country's currency by ten percent. In this particular town, the international border ran right down...
Explain how each question is relevant to international markets. Give examples. 1. Define the Fisher Effect...
Explain how each question is relevant to international markets. Give examples. 1. Define the Fisher Effect and explain why it's application is relevant to international markets. 2. What are the methods of Central Banks' intervention in the currency markets, how does this intervention effect the domestic and international FX markets.
1-Given the factors that affect the value of a foreign currency, describe the type of economic...
1-Given the factors that affect the value of a foreign currency, describe the type of economic or other conditions in Mexico that could cause the Mexican peso to weaken, and therefore to adversely affect your business. 2-Explain how currency futures could be used to hedge your business in Mexico. Explain how currency options could be used to hedge your business in Mexico. a. Explain how your business would likely be affected (at least in the short run) if the central...
What you can make if your local currency goes up or down in international market area?
What you can make if your local currency goes up or down in international market area?
Is it to your advantage to trade stock in the international market? Would you get value...
Is it to your advantage to trade stock in the international market? Would you get value for your American currency? What is the value of the Euro in relationship to the US dollar? Do you feel that the Euro or any other currency can really challenge the US dollar as the dominant currency in the World? Why or why not?
According to a recent UN report, International Foreign Direct Investment (FDI) flows may contract by up...
According to a recent UN report, International Foreign Direct Investment (FDI) flows may contract by up to 15 percent due to Covid-19, while the capital outflows from the emerging economies have already exceeded US$97 billion since January 2020. How would this affect the currency exchange rates in emerging markets? Mention the reasons for your answer .
According to a recent UN report, International Foreign Direct Investment (FDI) flows may contract by up...
According to a recent UN report, International Foreign Direct Investment (FDI) flows may contract by up to 15 percent due to Coronavirus, while the capital outflows from the emerging economies have already exceeded US$97 billion since January 2020. Question: How would this affect the currency exchange rates in emerging markets? Provide the reasons for your answer as well
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local...
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap. In Egypt, you calculate that the annual value created by one distributor is $180 million per year, but would be $240 million if two distributors carried your product line. Assuming a nonstrategic view of bargaining, you would expect to capture $ million...
Consider the following trade situation: The U.S. demand for imports of tomatoes from Mexico is QD...
Consider the following trade situation: The U.S. demand for imports of tomatoes from Mexico is QD = 24 - P The supply of tomatoes to the United States from Mexico is QS = 6 + P The units are million boxes and U.S. dollars per box One U.S. dollar buys 10 Mexican pesos 1. Draw a graph showing clearly the quantity of US imports of tomatoes from Mexico and their price in dollars 2. There is free trade in tomatoes...
Case 16-13 Determining the Functional Currency of a Foreign Manufacturing Facility Maxwell Company is a U.S....
Case 16-13 Determining the Functional Currency of a Foreign Manufacturing Facility Maxwell Company is a U.S. corporation that uses the U.S. dollar as its reporting currency. Gonzalez Company is a wholly-owned subsidiary of Maxwell Company located in Mexico, and functions as a maquiladora facility of Maxwell Company. Consider the following facts regarding Gonzalez Company: • Maxwell Company manufactures parts for one of its products at a facility in the United States. Maxwell Company packages the parts and ships them to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT