Suppose that all economies in the world agreed to use a single curre.docx

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Suppose that all economies in the world agreed to use a single currency that would be managed by an independent organization. What would the advantages and disadvantages of this be? Along with contributing your own answer by Saturday, provide a thorough, thoughtful response to at least one classmate by Tuesday.. ALSO PLEASE COMMENT ON ANOTHER STUDENTS COMMENT BELOW Valerie: Having multiple currencies is a little confusing and I could see some benefits to it as well as the disadvantages. My personal opinion however is that it is impractical and would do more harm than good. A single global currency could eliminate transaction costs. This would affect both ordinary citizens planning to spend money in other countries while traveling and multinational companies pursuing international transactions. This would eliminate the inconvenience of transaction fees when exchanging currencies for when traveling abroad and international transactions would increase. A disadvantage would be that countries would lose the ability to control their own financial policy. To ensure a stable economy, central banks will increase or decrease their economy by adjusting interest rates. The biggest disadvantage would be that countries that do not do well financially would cause strain for the rest of the world because other countries would have to use their resources to help stabilize that type of situation. .

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Suppose that all economies in the world agreed to use a single curre.docx

Multinational corporate management Discussion board The international monetary system facilitates international trade and investment. Historically there have been a variety of systems which has resulted in today’s multifaceted system. Describe the current international monetary system and your impression of the effectiveness and efficiency of the system. Discuss the various strategies that financial managers can use to optimize their company’s financial performance? Include in your answer the risks – transaction, translation, and economic. Which one of the three risks mentioned in #2 has the most impact on a company? Why? Your response should be at least 250 words Solution IMF is making strategies for supporting the developing and poor nations. they are providiing many guidelines and they are facilitating poor nations to become rich. it is taking different mesures and donating and contributing financial support to developing nations at lesser interest. it is also helping different nations to form associations and promote their common goal around the countries. they are assigning tasks based on regions and ask them to perform well and next they should assist remaining nations. but unfortunately what ever the measures or steps taken to minimize the inequality between poor and rich, they are resulting in opposite way only. the rich nations are becoming more rich and poor are becoming still poor and sick. indirectly it is giving chance to the strongers and they are becoming more stronger than earlier. the strategies are not giving the positive and expected results. the best ways to increase revenues and profits are either increasing the sales or decreasing the costs. now a days majority of the firms focusing on both these activities. to promote their product internationally they are using internaitonal markets for expansion. they are more stabilizing their revenues by concentrating on more than one market. they are exporting their products international wide and getting revenues from around the world. their transactions are international wide and selling the products around the globe. to minimise business and economic risks they are doing business with different nations at a time. and in this regards they are focusing on the foreign exchange transactions also. by taking correct strategies they are able to convert the international currencies into domestic currency. by diversifying into different nations and different currencies they are minimising the risk factors. and by contributing business services and activities they are promoting the economic well being of the community and economically the nation is becoming healthy and stronger..

INTERNATIONAL FINANCE EXERCISES

Imperial University

Complementary currencies and deflationary crisis

SehrGlobal

This essay describes the benefit of complementary currencies for the global economy. Especially in times of a deflationary crisis, as we can experience it actual with the EURO crisis, are complementary currencies valuable to ease the economical disaster. The idea of superneutralisation of monetary systems leads to the option to think about alternative monetary systems not only in local extension, as we know them from community currencies, but also in a global scale. The content of this essay does not argue for and against local or global approaches. It wants to show, that the experiences with local and community currencies are very valuable and important in an also global scale, not only as emergency monetary systems in times of deflationary crisis. The essay wants incorporate the dynamical growth of local initiatives with new economical approaches to domesticate the big business in advance. Following up the EURO crisis is it possible to transform parts of the mechanism of superneutralisation to the common currency area of the EURO zone. In this sense a superneutralised European currency incorporates the advantages of a common currency with the advantages of national currencies. The problems with inner European trading imbalances could be minimized due to the flexible exchange rates of this system. To reach the balance of trading is one of the main challenges to keep Europe political and economical stable. And the described measure would be that tool to reach this goal. It could help to stabilize the European economies. Alternative monetary thinking is important. One of the great achievements of community currencies is the use of low interest currencies. The essay describes the effect of reconciliation, which is based on superneutralisation and low interest currencies, as the most reasonable tool to solve the problems of public debts. As the superneutralised EURO zone would allow the implementation of low interest national currencies, it opens a opportunity for another tool to solve the EURO debt crisis. The subchapter “Compatibleness of low interest and interest free money in a superneutralised currency area” will deal with the orthodox tenets of the quantity theory of money and neutrality of money.

Future of Currency - Initial Persepctive

Future Agenda

Globalization, IMF AND WORLD BANK

Dr.Rehana Parveen

The student discusses globalization and the roles of the IMF and World Bank. Globalization refers to increased integration between countries through trade, technology, and transportation. While globalization aims to reduce poverty, it also widens wealth gaps and causes job losses. The IMF was established in 1945 to promote global monetary cooperation and provide emergency loans. The World Bank focuses on development projects but is criticized for prioritizing large projects over health and education. Both organizations are criticized for imposing conditions without input and increasing debt burdens for some countries.

I need a 125 word reply to each of the four following forum postings.docx

troutmanboris

I need a 125 word reply to each of the four following forum postings in a finance class (500 words total) You are responding to comments made by other students in the class. MUST BE ORIGINAL! Forum #1 When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. Foreign exchange risk occurs when the value of investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profit or returns earned in the foreign country will decrease after being exchanged back to the domestic currency. Political risk transpires when a country's government unexpectedly changes its policies, which now negatively affect the foreign company. These policy changes can include such things as trade barriers, which serve to limit or prevent international trade. “Since 2010, one in ten of the countries surveyed have experienced a significant increase in the level of short-term political risk. These risks include governments asserting control over natural resources, regimes being ousted by popular uprisings and the expropriation of foreign investors' assets” (Brown, Sophle. 2013). References Brown, Sophle. Political instability on the rise. Dec 11, 2013. Retrieved from web: http://www.cnn.com/2013/12/11/business/maplecroft-political-risk/ Forum #2 Multinational companies seem to be the standard for future business. They are typically more productive and pay their workers more than comparable locally owned businesses (Eun & Renick, 2015). With the many advantages that are available to multinationals it is no surprise that companies are shifting in this direction. However, all of the advantages do not come risk free as you may have expected. Two of the significant risks associated with multinationals and international financial management are foreign exchange risk and political risks. Foreign exchange risk is what would likely be the first thing you would consider when thinking about international finance. Exchange rates fluctuate on a regular basis and can be somewhat unpredictable at times. This has been the case since the early 1970s when fixed exchange rates were abandoned (Eun & Renick, 2015). Exchange risk is the difference between the exchange rate at the moment a business deal is closed for a given amount and the exchange rate at the moment when .

MTBiz November 2011

Mutual Trust Bank Ltd.

MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets. Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue. MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.

This document discusses money and banking globally and in Tunisia. It describes how central banks supply money and regulate banking systems around the world. In Tunisia, the dinar is the official currency, divided into 1000 milim. The banking sector has grown but faces risks like low liquidity and capitalization. The Central Bank of Tunisia is implementing reforms while opportunities exist to diversify the economy and increase financial inclusion in the future.

Chapter 14_The International Financial System

Rusman Mukhlis

The document discusses various topics related to the international financial system including: - Types of foreign exchange rate interventions and their impact on monetary bases - Components and purpose of a country's balance of payments - Fixed and floating exchange rate regimes and how central banks intervene to maintain fixed rates - Challenges of large current account deficits and the euro's challenge to the US dollar's global reserve status.

Evaluating The Merits And Demerits Of Fixed And Floating...

Angela Williams

This document discusses fixed and floating exchange rate regimes. It provides examples of the 2008 US financial crisis to illustrate how the US benefited from a floating exchange rate, and the 1929 stock market crash to show how the US economy suffered from excessive speculation under a floating rate. Similarly, it discusses dangers of speculation during the 1929 crash and Argentina's 2001 emerging market crisis to analyze fixed exchange rates. In general, floating rates provide more adaptability but can lead to instability and speculation, while fixed rates offer stability but reduce independence.

604 08-17solutionsmanual-130313081430-phpapp02

Hatim100

This document provides solutions to end-of-chapter questions and problems from the textbook "Multinational Finance" by Kirt C. Butler. It addresses conceptual questions about international finance topics such as foreign exchange risk, political risk, cultural differences, and goals of financial management for multinational corporations. The solutions also discuss trade pacts, trends in exports, and classifications of economies. Key events in international monetary systems like the Bretton Woods agreement and currency crises are summarized.

Imf2

NOMANTALUKDAR

The document provides information about the International Monetary Fund (IMF) in 3 sentences: The IMF is an international financial organization with 188 member countries that was formed in 1947 to assist in rebuilding the global monetary system after World War 2 and to facilitate international trade, financial stability, and poverty reduction. It provides policy advice, research and analysis, and loans to its member countries to help solve monetary problems and support sustainable economic growth. However, some criticize that IMF policies can negatively impact access to food and public health in developing nations and favor privatization over long-term development.

Chapter 06a

Arsl57

The document discusses different exchange rate systems used by governments and how governments can intervene in currency markets to influence exchange rates. It describes direct intervention where central banks exchange currencies they hold as reserves and indirect intervention where governments influence factors like interest rates. Government intervention aims to smooth exchange rate movements and respond to economic conditions, though market forces often overwhelm intervention efforts. Intervention is one policy tool governments use to achieve objectives like reducing unemployment or inflation.

Chapter 9 Foreign Exchange Market

Islam El-Shafie

The foreign exchange market allows companies to convert one currency into another. It provides insurance against risks from unpredictable exchange rate changes that could harm sales and profits. Companies use the market when paying or receiving funds in foreign currencies. Firms can hedge against exchange rate risk by entering forward contracts to set future exchange rates. Spot rates are current rates while forward rates are set for future dates. Currency swaps also allow companies to temporarily exchange one currency for another without exchange rate risk. The global foreign exchange market is a network of banks and dealers that trade currencies 24/7. Exchange rates are determined by supply and demand and factors like inflation rates and interest rates that can impact currency values. Managers must consider various types of exchange rate risk for their

Euro Crisis Immediate Solutions

Kannan Rajarathnam

The global economic crisis has had unprecedented and wide-ranging effects. While governments have tried stimulus measures, rising debt and uncertainty continue to hamper recovery efforts. One potential solution is for governments to print money and allocate it to reduce various stakeholder debt levels, up to 25% of the existing money supply, provided inflation and exchange rates can be managed. This approach would require international coordination and testing in the most affected country first before broader implementation. It could help make economic systems viable again by improving liquidity and removing gloom while maintaining functional financial systems.

E book forex

FNU

The document provides an overview of elementary concepts in the foreign exchange (forex) market, including: - Currency pairs involve a base currency denoted on the left and a counter currency on the right used for payment. The exchange rate is the price of the base currency in terms of the counter currency. - The spread is the difference between the buying and selling price and represents the trader's commission. Pips refer to the smallest incremental change in a currency's exchange rate. - On average, the EUR/USD fluctuates about 100 pips daily, representing a 0.7-0.8% change. More turbulent days see 200-300 pip moves or up to 2% changes. This stability

International business strategy

JisjissyChandran

Understanding How Money Works_ A Comprehensive Guide.pdf

goodwill36

Money is a system that allows people to exchange goods and services easily. It serves as a common unit of value and comes in various forms, like coins, notes, or digital currencies. Central banks and commercial banks create money through processes like issuing currency or lending. They control the money supply to regulate factors such as inflation and interest rates. Banks and financial institutions play a crucial role in the monetary system by facilitating lending and providing financial services. Money has a significant impact on the economy, influencing factors like growth and employment. To make better financial decisions, it's important to understand how money works. Take the time to educate yourself about money, its creation, and its impact on the economy. By doing so, you can make informed choices and achieve your financial goals.

Power Balance

Benjamin Morley

The document discusses the relationship between nation states, multinational corporations (MNCs), and transnational organizations in the global political and economic system. It argues that while nation states still dominate, MNCs and transnational bodies like the IMF and WTO also wield significant influence. Nation states determine economic rules but powerful MNCs can also influence weaker nations. These actors are interdependent: MNCs rely on stable nation states to operate, nation states need jobs and growth, and transnational organizations require nation state membership and funding. The relationships between these actors are examined through issues like economic cooperation, debt, and balance of payments. Zimbabwe is used as an example of a nation devastated by debt and economic mismanagement.

Imf

Srishti Shrivastava

The International Monetary Fund (IMF) is an intergovernmental organization that oversees the global financial system and enforces economic policy on member countries. The IMF aims to stabilize exchange rates and facilitate development through loans and aid that liberalize economies. It monitors members' economic policies and provides short-term loans to help countries address balance of payments issues. The IMF is funded mainly through member quota subscriptions and has about 187 member countries.

Optimum Currency Areas

Kolmhofer Martin

For all those interested in "Optimum Currency Areas" - my new infoposter "ECONOMICS" is now available: - the poster gives an overview of the development of economic theory from its beginnings. - the poster shows the historical roots of economic ideas and their application to contemporary economic policy debates. View and order at http://www.cee-portal.at/PrestaShop Best regards Martin Kolmhofer

I have been reading the work of Alesina , about the pros and cons of.pdf

Madansilks

I have been reading the work of Alesina , about the pros and cons of dollarization (i.e. adopting the currency of other country, say the dollar). It is not the case of the European Union by the way, here the small open economy completely gives up on having its own currency. Countries like Panama, El Salvador, and Ecuador have adopted such monetary policy and have done well during expansionary part of the cycle. Now, most commodities prices, of which these countries depends are down, and evidence will be available of the costs of dollarization. However, here I ask about theoretical reasons of why this extreme fixed exchange rate is better with a flexible scheme. The trade-off is between stable and credible monetary policies and flexible possibly manipulable ones in countries with weak institutions. Solution Like many questions in economics, optimal behavior depends on the set of alternatives. The alternatives of Panama, El Salvador, and Ecuador to dollarization are likely a heavily politicized monetary and exchange rate policy. And so for the hypothetical small open economy considered in the question, the key issue is \"What\'s the institutional effectiveness and independence of the potential monetary authority?\" There are small, open economies with well run central banks (Australia and Switzerland) but also less well run ones (Turkey). If Panama could have Australia\'s quality of central bank they\'d probably prefer that to dollarization. That might explain why Chile and Costa Rica, with some of the best institutions in Central America choose not to peg their currency to the dollar. If Panama did manage its own monetary affairs without a peg they\'d get likely get results more like Turkey. They likely prefer dollarization to the results they\'d expect from independent monetary policy. And indeed, when you peek into the past of many countries with pegged currencies, you often find an episode of poorly conducted monetary policy just before dollarization. Not Panama (never had its own currency since independence), nor El Salvador, but Ecuador introduced dollarization in response to a severe banking and financial crisis. Argentina also seemed to introduce dollarization in response to monetary crisis. There are of course other considerations related to optimal currency areas. In particular, if you do a lot of trade with the USA dollarization is less of a sacrifice with respect to the best possible independent currency and monetary policy then if you do most of your trade with a neighboring country that uses a different currency. If Mexico adopts a pegged currency at some point the dollar makes a lot more sense than the Euro when 70% of their trade is with the USA and trade is a big part of their economy. But neighboring countries often have similar trading partners, and are in a similar position with respect to other optimal currency area criteria (no labor mobility to the reference country, no fiscal transfer mechanism shared with the reference .

I have been reading the work of Alesina , about the pros and cons of.pdf

amitpurbey2

Imf developing countries

Keerthi Dasharadi

The document discusses the relationship between developing countries and the IMF, using India as an example. It notes that before 1991, India faced a severe balance of payments crisis and was bailed out by the IMF, allowing economic reforms that helped liberalize and globalize the Indian economy. Now India has grown strong enough to sustain itself without IMF assistance. However, IMF reforms have failed in some countries like Thailand, South Korea, Indonesia, and Mexico, possibly due to poor domestic policies. The document concludes that developing countries still need IMF help but reforms and conditions should be customized to each country.

Money and Our Monetary SystemThe monetary system in any economy fa.pdf

arjunstores123

Money and Our Monetary System The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is the Federal Reserve System (also referred to as the Federal Reserve, or informally, as the “Fed”.) For this use the Fed’s website (http://www.federalreserve.gov/) when addressing the questions below. What are the requirements for something to be considered money? Why does the dollar have value? What does the money supply consist of and what are the respective amounts in the total money supply for the United States? What are the primary functions of the Fed? What role does the Federal Open Market Committee (FOMC) play in our economy? What role do the financial institutions (commercial banks and other institutions) play in our financial system? What is meant by the term “fractional-reserve banking” in our system? What are the implications for consumers? What are the tools available to the FED for controlling the money supply? Which are used most often? Which are most effective? How does the money multiplier help to determine the effects of monetary policy? What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices? Solution Money is basically medium of exchange so for anything to be consideredd money there are three eligibility criterias It is a currency which is backed by a stable and sound government, other than that dollar has value because it fulfills all the three criteria mentioned above. It is widely accepted which provides good strength to its value. It consist of M1 and M2(the definitions and details are copied from fedreserve site) Money Stock Measures. Billions of dollars. There are four primar functions of Fed The role of FOMC is to make monetary policy for federal reserve stsrem which it could implement in the U.S. The most basic role of financial institutions is to provide circulate money in the economy and facilitate liquidity. It enables the flow of economic activities and helps in spreading the effects of implemented monetary policies.Table 1 Money Stock Measures. Billions of dollars.DateSeasonally adjustedNot seasonally adjustedM1 1M2 2M1 1M2 2Jan. 20142,688.411,033.82,697.511,058.9Feb. 20142,712.911,098.92,701.711,110.3Mar. 20142,746.111,153.52,768.711,235.4Apr. 20142,770.911,212.32,805.211,288.7May 20142,790.511,281.82,777.711,231.9June 20142,820.811,335.32,820.211,293.7July 20142,836.811,402.02,837.411,348.7Aug. 20142,807.411,438.72,786.111,379.9Sept. 20142,869.611,476.62,831.111,430.4Oct. 20142,874.011,528.62,860.411,496.4Nov. 20142,884.711,566.72,856.011,572.2Dec. 20142,927.311,636.42,985.211,717.4Jan. 20152,937.911,703.52,944.611,723.7Feb. 20152,985.111,800.12,976.111,812.2Mar. 20152,990.211,835.13,019.611,921.3Apr. 20152,995.611,888.03,032.411,970.7May 20152,989.811,923.92,973.111,873.0June 20153,015.311,970.63,017.011,926.7July 2015.

The annotated bibliography must consist of 8–10 references (primar.docx

Suppose that all economies in the world agreed to use a single curre.docx

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