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Excerpt from Term Paper:
Exchange Rates and Export Opportunities
This kind of paper compares exchange costs between Australia, Great Britain, and Japan via last February 28th, the year 2003 and August 28th, 2002. Analysis of where a company may focus their export business based on past current and 180 times forward exchange rate trends and other factors will then be reviewed. Finally a memorandum to convince supervision that building an foreign trade business to a single of the countries below is advisable.
Comparative exchange rates among 4 selected countries plus the U. S i9000.
Below are the exchange costs listed by the Pacific Stock market for February 28, the year 2003 for Australia, Great Britain, and Japan. (Pacific Stock Exchange Website)
Code
Nation
Units/USD
USD/Unit
AUD
Sydney (Dollar)
GBP
Great Britain (Pound)
JPY
The japanese (Yen)
KRW
South Korea (Won)
Underneath are the exchange rates posted by the Pacific cycles Stock Exchange to get August twenty-eight, 2002 pertaining to Australia, England, and Asia. (Pacific Stock market Website)
YYYY/MM/DD 2002/08/28
USD/AUD
USD/GBP
USD/JPY
USD/KRW
AUD/USD
GBP/USD
JPY/USD
KRW/USD
Examining exchange rates between the 4 chosen countries and the U. S.
Just like be seen by the charts around the previous page in the past six months (August 30th, 2002 – February 28th, 2003) the dollar is becoming stronger resistant to the currencies of Australia and Japan although losing power against the foreign currencies of To the south Korea and Great Britain. Current geo-political concerns, specifically the increasing belligerency of North Korea plus the concurrent cooling of contact with the Southern Korean govt are bring about for getting rid of South Korea from the set of possible sites to open new company ventures with, at least in the immediate.
The current exchange rate tendency between the U. S. Plus the U. K. appears to hold steady in the very immediate. However 180 forward rates indicated industry believes the dollar will gain a little bit against the English Sterling and can continue to do so for a 2-yr period.
Period Bid Question Period Put money Ask
Month
12-Month
Source: OZFOREX
http://www.ozforex.com.au/cgi-bin/forwardrates.asp basic financial theory in international trade is that forex depreciation motivates exports, (Blaine, 1996). The GBP/USD charge should continue to favor the U. S. For the foreseeable future.
The united kingdom uses persistent floating exchange rate regime. The exchange rate is definitely market identified, with any kind of foreign exchange treatment aimed at moderating the rate of change and preventing unnecessary fluctuations in the exchange charge, rather than at establishing a good for it, (Bank of England, 2003). With this plan financial predicting for trends and income potential can be more accurately tested based on genuine market rates for the Pound.
Different determining elements for concentrating the within the U. E. For a great export market include the steadiness of the Govt, the fairly high level education and growing discretionary income in it’s population as a feet hold pertaining to acquiring marketplaces in The european union.
A brief conversation on the usage of exchange prices alone
