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Foreign exchange refers to the global market where currencies are traded virtually around-the-clock. Exchange rates are determined by supply and demand and are influenced by factors such as inflation, interest rates, speculation, competitiveness, relative strength of other currencies, balance of payments, government debt, and government intervention. For example, lower inflation in one country will make its exports more competitive and increase demand for its currency, causing an appreciation of its value.
Foreign exchange refers to the global market where currencies are traded virtually around-the-clock. Exchange rates are determined by supply and demand and are influenced by factors such as …