Managing in a Global Economy : Demystifying International… by Marthinsen
Chapters 14 - 16
1. Present recent exchange rates between two currencies, and then show how this exchange rate changed to cause appreciation for one of the currencies. Then chose another set of currencies showing depreciation of one of the currencies. The examples should include 4 different currencies.
2. What are the 6 major segments of the foreign exchange market according to the text? Who are the participants in the foreign exchange market? Give examples.
3. What is the forward exchange market? Basically explain how this market works.
4. How are exchange rates determined? Use diagrams to supplement your answer-- for example, begin with Exhibit 15-9.
Make sure that you explain how the vertical axis currency ratio relates to the variable measured on the horizontal axis.
5. What are the principal parts of the balance of payments statement based on the presentation in the Marthinsen text? What is meant by balance of payments surpluses and deficits?
