Exchange rates
- Created by: keefer1999
- Created on: 15-12-14 02:31
View mindmap
- Exchange Rates
- Definition: the price of one currency in terms of another.
- How are exchange rates determined
- market forces and if those forces change the price is also likely to change
- Factors affecting the demand of a currency
- the demand for exports
- firms selling goods and services to another country are expected to be paid in their own currency
- example: a UK firm selling goods to an Australian firm do not want to be paid in pounds. Demand for UK exports results in the demand for the Pound Sterling
- inward foreign direct investment (FDI)
- Untitled
- Interest rates
- the demand for exports
Comments
Report
Report
Report