Question

what is the foreign exchange market and how does it affect globalization?

what is the foreign exchange market and how does it affect globalization?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Foreign exchange market is the international market of the transaction of currencies. International trade facilitated and expanded with the advent of globalization impacts the balance of trade level between nations. For example, goods which are internationally demanded implies an appreciation in the currency. A country which imports massively would sell more of its currency to get foreign currency in order to buy imports would have a negative consequence on the value of the currency of importing country. Hence there are many economic factors like political impact, economic scenario, and capital markets.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is globalization, and how does it affect different countries?
What is globalization, and how does it affect different countries?
How does rapid economic growth at home affect foreign exchange markets?
How does rapid economic growth at home affect foreign exchange markets?
How does an increase in government purchases financed by an increase in the deficit affect exchange...
How does an increase in government purchases financed by an increase in the deficit affect exchange rates? Support your answer with graphs of the loanable funds market and the foreign exchange market.
How does globalization affect producers and consumers? How are producers of products like clothing or food...
How does globalization affect producers and consumers? How are producers of products like clothing or food affected differently by globalization than consumers? In what ways is globalization experienced differently by people from wealthy countries compared to people in developing countries? How does this connect to global health? Does globalization affect the health, specifically, of producers of products like clothing or food differently than it does consumers? If so, how? If not, why not?
How does the Internet affect international business activity and the globalization of the world economy?
How does the Internet affect international business activity and the globalization of the world economy?
Explain how automakers interact with the foreign exchange market.
Explain how automakers interact with the foreign exchange market.
How would the fluctuation of foreign exchange rates affect the presentation and comparability of financial statements?
How would the fluctuation of foreign exchange rates affect the presentation and comparability of financial statements?
"In the market for reserves, what determines demand? What determines supply? How does an increase in...
"In the market for reserves, what determines demand? What determines supply? How does an increase in the discount rate affect supply? An increase in Treasury deposits at the central bank? An open market purchase of securities? A purchase of foreign exchange? A reverse RP? A higher interest rate paid on excess reserves?"
How do global firms manage the global financial environment and the foreign exchange market? in relation...
How do global firms manage the global financial environment and the foreign exchange market? in relation to the foreign exchange market and Foreign currency derivatives
What is foreign exchange market? Why are developing nations at weaker side of negotiations in foreign...
What is foreign exchange market? Why are developing nations at weaker side of negotiations in foreign trade?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT