Chan chee m ang tp021569

Chan Chee Mang TP021569 BM024-3-3-ICFIN

BM024-3-3
INTERNATIONAL CORPORATE
FINANCE

Student Name Chan Chee Mang
Student ID TP021569
Intake Code & Course UC3F1201 IBM
Assignment Code & Description BM024-3-3-ICFIN
International Corporate Finance
Assignment Title Exchange Rate Determination
Hand in date 15th October 2012
Lecturer name Edward Thangaratnam Paul

Asia Pacific University of Technology & Innovation
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Table of Contents
1.0 Introduction ................................................................................................................................. 3
2.0 Currency Value’s Percentage Change Measuring Methods in Thai Baht. .................................. 3
3.0 Basic Factors That Determine the Value of Currency and Its Relationships. ............................. 5
4.0 Level of Inflation and Interest Rates affect the Baht Value in Thailand..................................... 8
5.0 Losing confidence in Thai Baht and the effects ........................................................................ 11
6.0 Interest rate prevent further changes in the currency’s value.................................................... 12
7.0 Conclusion ................................................................................................................................ 13
8.0 References ................................................................................................................................. 14
8.1 Offline Resources........................................................................................................................ 14
8.2 Online Resources ........................................................................................................................ 15
9.0 Appendixes (refer to the CD) .......................................................................................................... 17

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1.0 Introduction
In the modernisation era, it is all about Globalisation in the international business context.
With the rise in Globalisation resulted the increase level of international business activities
and yet led to the rise of exchange rate events. Exchange rate is the price of a country’s
currency expressed in another country’s currency or the rate at which one currency can be
exchanged for another and this has to be taking into consideration by Multinational
Corporations like Blades Inc. as the Thai based entertainment retailer In another word,
appreciation of exchange rate for one Dollar in terms of one Baht (fixed rate) would result in
depreciation of the value of Baht. The changes in exchange rates are determined by the
factors of changes in interest rates, inflation, trade balance, political stability, internal
harmony, high degree of transparency in the conduct of leaders and administrators, general
state of economy, and quality of governance. The exchange rate is considered as the vital
factor of any country’s economy and indication of the financial health.

2.0 Currency Value’s Percentage Change Measuring Methods in Thai
Baht.
Exchange rates and its fluctuation are important aspects involving in any types of business
especially Multinational Corporations like Blades Inc. Role of regional managers of MNCs
should monitor closely the changes in rates from time-to-time with well understanding about
the “game”, be alert and cautious of the impacts and effects on the organisation’s cash flow.
For instance, the MNC’s value can be affected by the changes in exchange rates due to the
sum of cash sales received from their subsidiaries, and cash outflows reimburse for trade in.
The exchange rate can be measured by calculating the once currency’s value based on
another currency. Of course, economic changes would significantly revolutionise the
exchange rates.

In the case study of Blades Inc., the managers should pay attention to the fluctuations of the
Thai baht compared to the US dollar. This is because the movements of the value of the Thai
baht will have an impact to the cash flow of the firm. A depreciation of the baht could result
to the decrease of a currency’s value, which decreases the income of a firm whilst an
appreciation of Thai baht could result on the increase of the income of Blades Inc. This
shows that when Thailand’s currency (Baht) value decline over United States’ currency (US

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Dollar), there is intensification of the US Dollar compared to Baht which is the boost of
currency value of appreciation in US Dollar.

However, at the same time, there will be difference in currency spot rate caused by the
changes in economic market. In addition, exchange rate movements can be measured by
computing the change in percentage of foreign currency value which the difference would be
ending spot minus beginning spot divided by ending spot rate multiplied by hundred but there
are also separations in exchange rate determination considering the prospective of the specific
country.

To measure the percentage change of Thai Baht, Blades Inc. should consider the two main
types of movements- direct and indirect. Direct exchange rates movement takes into account
the difference in exchange rate value in home currency in terms of one foreign currency and
in contrast, indirect exchange rate movements are foreign rates denoted into one home
currency (Madura, 2012). The formula used is direct where ending spot minus beginning spot
whereas indirect is where beginning spot minus ending spot.

Formula: % ∆ =

S is the above formula is equivalent to the most recent spot rate while the spot rate at the
earlier date is to be represented as St-1 (Madura, 2012). For the case study of Blades Inc.,
assume that there is a change in Thai’s currency-Baht value from a value of $0.022 to $0.026,
percentage change in Thai baht would be (S is equivalent to $0.026 and St-1 is equivalent to
$0.022):

Direct Approach:

From the above calculation, Thai Baht is anticipated to appreciate by 18.18%. The positive
percentage has shown that Thai Baht will appreciate compared to US Dollar. Whereby, if the
percentage is negative shown, meaning that Thai Baht will depreciate comparative to US
Dollar (Madura, 2012).

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3.0 Basic Factors That Determine the Value of Currency and Its
Relationships.
Madura (2012) stated that there are 2 forces which influence the currency’s value on the
supply of the currency for sale and its demand. Like any kind of industry life cycle, supply
and demand would affect the movements of exchange rates and could be revealed in its
foreign exchange rate, meaning that the price of a currency has its own particular supply and
demand based on the country’s economic condition. Less demand in its currency would leads
to depreciation against the country that possesses stronger economies; in contrast, boosting of
country’s economy would elevate its currency value under the condition of without
government interference. In the case of Blades Inc., each value of the Thai Baht has a
different supply and demand when exchanging to another currency like British Pounds, South
Korean Won, Japanese Yen and so on especially in US Dollars. Furthermore, a high level of
demand for any given currency increases the value of that particular currency while in case of
a higher supply compared to the demand; the value of the currency will decrease until there is
a rise in demand and a decrease in supply (Madura, 2012).

If the demand of any currency is higher when the value of that particular currency is low,
MNC like Blades Inc. will tends to buy products at prices (more quantity) whereby the
currency of the foreign country is less powerful compared to their own when the value of the
manufacturer’s company is lower. For example, MNC firm like Tickle Me Elmo. When it
was initially launched, there was a high demand for it. Parents were crazily crushing each
other to grab it for their kids. As Elmo was rapidly sold out at stores, another alternative for
purchasing it would be through eBay which was sold at an incredibly overpriced. Elmo was
popular due to its demand which it would not be if no children would want it. In order to gain
profit in currency markets, investors would have to know where the appreciation of supply
and demand is, in the market. In the case study, if the value of the Thai Baht is $0.022,
MNCs will tends to buy more products and services compared to the period whereby the Thai
Baht might be $0.026 whereby the products will be more expensive. Below figure 3.1 is the
graph shows the relationship between exchange rate and quantity (rate versus quantity), the
demand is curved downward.

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Figure 3.1: Demand curve (CMSForex, 2012)

While In terms of supply for a currency, the supply of any currency is usually higher when
the value of that particular currency is higher (Madura, 2012). Furthermore, Madura (2012)
also stated that there is a positive relationship between the value of a currency and the amount
of that particular currency which is on sale. In the case study, when the Thai Baht is $0.026,
Thai based firms will tends to exchange the Baht to US Dollars while purchasing American
products and services. This measure will raise the supply of Thai Baht on the market. But if
the Baht value is $0.022, the supply of the currency will be relatively lower. Below figure 3.2
is a graph shows the relationship between exchange rate and quantity (rate versus quantity)
with an upward curve.

Figure 3.2: Supply curve (CMSForex, 2012)

Another situation is Equilibrium when the supply of the currency is equal to the demand for
the currency. According to Madura (2012), equilibrium is a particular point where the supply
of the currency for sale is equal to its demand on the economy market. Considering if US
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inflation is higher than of Thai’s, the Thai people demanding for US products may depreciate
and conversely US people demanding for Thai products may boost up to steer clear of the
high US prices resulting in an upward pressure on the value of baht. In this case, the demand
for Thai Baht on sale at $0.022, then demand of the currency would be higher than the supply
of the currency. In contrast, the demand for Thai Baht for sale at a price of $0.026 would be
less than the supply of the currency. In the case study of Blades Inc., the equilibrium
exchange rate between US Dollars and Thai Baht would be $0.024 when the demand for
currency is equal to the supply of the currency. Below figure 3.3 is a graph shows the
equilibrium price when the demand of the currency is equal to the supply of the currency.

Figure 3.3: Equilibrium of Prices.

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4.0 Level of Inflation and Interest Rates affect the Baht Value in
Thailand
Inflation rates and interest rates have a considerable impact on the international trade activity
which then affects the exchange rates (Madura, 2012). The changes in inflation and interest
rates will affect the supply and demand of a country’s currency. For the case study of Blades
Inc., a high inflation rate and interest rate will lower the value of the Thai Baht. This is
because the rise in the inflation might lead to Thai individuals and firms to buy product from
East Asian countries such as Indonesia, India, and China or even the USA if the inflation rate
within those areas are relatively lower. This will result in a higher demand of the different
foreign currencies like China Yuan, Japanese Yen, Indian Rupee, US Dollar and so on. In
return of this, the demand for local products will decrease and therefore resulting in a
decrease of the demand for Thai Baht by other countries and thus Baht values are lowered.

Inflation is referred as the rate at which the general level of prices for goods and services is
rising, and subsequently, purchasing power is falling (Madura, 2012). Example, the baby
boomer generation used to purchase daily products half of the price in the same early age
much cheaper compared to generation X and Y. This shows that as years passed, prices have
radically increase and currency value has depreciated, and this is the scenario of inflation
which is essentially caused by the demand and supply economic principle, and perceptions
towards value. In addition, currency value of a country is also influenced by consumer
spending power and does not remain invariable during inflation.

Meaning that high inflation will reduce spending power, enhances interest rates and yet
reduce competitiveness resulting in depreciation of currency value. Also, enhancing the
demand for US products by Thai nation and the same goes for the demand in Dollars.
Furthermore, there will also decrease for Thai products by American , resulting in increment
in supply of Baht for sale overpasses demand. High inflation rate also have an adverse impact
on the different economic sectors of the country. Algrim and Darcy (2012), Braumann (2000)
and Madura (2012) argued that there are several negative outcomes of high inflation rates
with commons findings of decrease in investments, lower wages, decrease in GDP per capita,
reduced private consumptions and sharp declines in real money holdings and real outputs. In
summary, high inflation rates obligate consumers to purchase overseas or import products.

In contrast, countries often achieve low inflation will lead to increase in currency value. This
is because overly high inflation rates will jeopardize a country’s economy conditions, and act
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as a bullish sign diue to the drives of a strong force in its economy. Thai occurring high
inflation levels would weaken Baht by increasing the import pricing leading to increase of
pricing in Thai materials and supplies affects the increase in prices of end products as well.

Furthermore, in the case study of Blades Inc., a high level of interest rate in Thailand could
also lead to an increase in the value of the Thai Baht and therefore appreciate compared to
foreign currencies such as the US Dollar (assuming that the interest rates within America is
the constant). Thus, the rise of the interest rate attract US investors to have excess cash to
invest in Thailand. The rise in investment within Thailand will result into an increase in the
demand of the Thai Baht value to appreciate compared to the US dollar. For instance, the
stability of the interest rate within the United States of America will make the US securities
less appealing to the Thai investors which later selling US dollars and causes an increase in
the supply of the Dollars resulting the depreciation of the US dollar compared to the Thai
Baht.

In addition, if the investors believe that the high inflation rate would be more influential than
the interest rates, and yet causing depreciation of the Thai Baht, the investors will unwilling
to operate in Thailand. At the same time, if the Central Bank of Thailand increases the
country interest rates drastically, may have an adverse impact on the economy of the country.
Also, the high interest rates will slow down the economic development of the country and
enhance more investment from Thai firms to foreign countries with attractive interest rates
resulting lower percentage of local borrowing and operations.

The 2 important keys of inflation and interest rates are determined by the supply and demand
as the forces in determining the exchange even though countries secure their currency’s
exchange value (Algrim and Darcy, 2012). For example, to purchase American products,
Europeans are ought to supply Euro and to demand Dollar resulting in depreciation of Euro
and appreciation of Dollar. If supply overpasses demand, value of euro would depreciate in
foreign exchange market because government tends to increase lending by lowering loans
interest rate to encourage demand for their currency. In contrast, if demand overpasses supply,
value of Euro would appreciate. The rise of one country’s currency supply is simultaneously
rising of another country’s currency demand (Braumann, 2000).

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Figure 4.1 The Global Economics Game, 2012

The above figure 4.1 is the example of Global Economic Game. In further explanation, Point
A is where French convert euro to dollar in banks to purchase American products. Euro
depreciates from $1.00 to $0.98. On the other hand, Dollar appreciates from €1.00 to €1.02 at
point B. At point C, American convert dfrom Dollar to Euro in banks to purchase France
products. Dollar depreciates from €1.02 to €1.00. At the same time, Euro appreciates to its
original $1.00. If both supply and demand is equal, both countries would have an even
exchange rate. In contrast, if supply and demand does not stabilize, there would be
fluctuation in exchange rate.

For the case study of Blades Inc., high interest rate levels in Thai would result in appreciation
of Baht value relative to dollar influencing US investors to be more tempted to invest in Thai.
This would enhance the demand for Thai Baht. The supply of dollars for sale would
overpasses the demand as Thai investors would not be tempted by the US. In return,
considering if Thai’s inflation will affect the depreciation of Baht value might causes US
investors reluctant in investing in Baht-denominated securities. Furthermore, inflation can be
driven by low interest rates as the increase of pricing which is driven by low interest forcing
surplus money into economy. To prevent the adverse effects of high inflation rate, the Central
bank of Thailand and its government should closely monitor the inflation rate in order to
calm the market (Braumann, 2000).

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Interest rate movements will influence the currency value of loans through the impact on
demand and supply resulting cash loses its value continuously. In United States, demand and
supply of currency affects the quantity and pricing of products and services that are
purchased and sold, and yet interest rate help identify the upcoming return of investment for
purchasing loans now.

5.0 Losing confidence in Thai Baht and the effects
Some speculators had foreseen the Thailand’s weak economy influenced by the declination of
capital inflows in the country. Thus, the foreign investors began to shift their directions
together with the direct capital. The withdrawal of funds from the country-Thailand will
causes depreciation of demand and currency’s value of Baht. This is seen in the Asian
Financial Crisis in the year 1997 that Thailand was having the fixed or semi-fixed exchange
rates resulted downward pressure in Thai’s Baht of currency speculative attacks. Furthermore,
the appreciation of home interest rates has also influence nation to acquire loans heavily at
lower interest rates resulting the happens of poor oversight of home lending such as
increment of public debt contribute to crisis.

At the current situation many foreign investors lost their interest and confidence in the Thai
Baht. The withdrawal of the capital funds increase the movements in velocity of money,
money supply and actual productivity of economy, will result in the depreciation of the
currency as the investors are withdrawing their currency thus leading to an increase in the
supply of the Thai Baht on the market and yet hyperinflation.

For example, Germany went through deflationary collapse in 1920 (Carbonnel, E., 2008). It
was getting tougher and tougher for its citizens to obtain money to purchase necessities.
MNCs were challenged with having to pay by cash for their materials with banks running low
on money and not honoring checks. German government anxiously printed money as an
effort to re-inflate the economy fearing that a collapse will increase in unemployment. Apart
from the government’s effort of printing money, its currency value appreciated comparative
to other currencies resulting in decrease of 50% on imported products. German people lost
confidence in their currency due to the high velocity of money supply, economy downturn,
and huge foreign debt.

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In Blades Inc. case, the changes in the currency’s value of Baht will directly affect the firm as
Thai people are one of their major consumers. Furthermore, it is stated that the deal is at a
fixed price denominated in Baht. As the value of Baht weakens compared to Dollar, it would
negatively impact the Blades’ income. When the firm does a conversion on its profit from
foreign currency-Baht to its home currency Dollar, there will be a decrease in receivable
amount of Baht per Dollar. Meaning the income perceived is depreciated compared to
preceding sales. In this situation, Blades Inc. should reflect on negotiating back on the terms
with Diversified Entertainment Products to reduce the economic risk.

6.0 Interest rate prevent further changes in the currency’s value
To stop the withdrawling and drastic fluctuations of the Baht value, the Thailand Central
Bank- Bank of Thailand (BOT) should set up policies which would reduce the motivation of
investors to leave. An example of most secured solution is to increase the current interest
rates of the country.

Interest rate is one of the most important macroeconomics variables which are directly related
to the economic growth. Generally, interest rate is considered as the cost of capital, that is,
the price paid for the use of money within a specific time period. From the point of view of a
borrower interest rate is the cost of borrowing money-borrowing rate, while on the lender’s
point of view, interest rate is the fee charged for lending money-lending rate (Allam and Udin,
2009).

According to Madura (2012), interest rates greatly influence investment in foreign securities.
Meaning that the changes in the interest rates have an impact on the equilibrium of the
currency of the country. In further statement, the increase in the interest rate in any country
will also increase the appreciation demand of Thai country’s currency and decrease the
demand for foreign deposits resulting an increase in exchange rate of the country’s currency.
BOT has to be aware of the possibilities of home investors shifting money to other country
with higher interest rates. This is because depreciation of interest rates encourages inflation.

For the case study, assuming the interest rate for US is 3.5% and Thai is 5%, investors would
benefit by shifting funds from securities denominated from Dollar to Baht and therefore
resulting upward pressure in appreciation of demand for Baht and supply for Dollar when
investors will get more Baht per Dollar in coversion and increases the import prices. In

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addition, the difference of interest rates would affect the supply and demand of currency and
change in equilibrium value.

7.0 Conclusion
In conclusion, exchange rate is the main factor of global industry framework, the country
Central Banks and Multinational Corporation should be alert and be cautious! This is because
exchange rate may severely impacts all business opreations in foreign countries including
MNC like Blades Inc operating in Thailand. Also, well understand in the fluactuation in
inflation, interest rate, supply and demand movements will benefit firms like Blades
preventing risk in losses in income due to in depreciation of currency value.

Although suggestion on the increase of interest rate is given to attract more Foreign Direct
Investment (FDI) and reduces withdrawal of funds, the BOT still need to be more careful
when raising the interest rates. This is because an excess in the difference of the interest rate
might have an adverse impact on local investors and borrowers and even lower the operation
of foreign investors in the country.

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8.0 References

8.1 Offline Resources
Ahlgrim, K.C and D'arcy, S.P. (February 2012). The Effect of Deflation or High Inflation on
the Insurance Industry. Casualty Actuarial Society, Canadian Institute of Actuaries, Society
of Actuaries. pp1-30.

Allam, M.M and Udin,G.S.. (2009). Relationship between interest rate and stock price:
Emperical evidence from developed and developing countries. . International journal of
business and management. 4 (3), pp43-51.

Baumann, B., 2000, Real Effects of High Inflation, WP/00/85, IMF Working Paper, Western
Hemisphere Department, International Monetary Fund

Beirne,J. Caporale,G.M. and Spagnolo,N.. (2009). Market, Interest Rate and Exchange Rate
Risk Effects on Financial Stock Returns: A GARCH-M Approach. Quantitative and
Qualitative Analysis in Social Sciences. 3 (2), pp 44-68.

CMSforex. (2012). Exchange Rates and Supply and Demand. Available:
http://www.cmsfx.com/en/forex-education/online-forex-course/chapter-2-fundamental-
factors/exchange-rates-supply-and-demand/supply-and-demand/. Last accessed 8th October
2012

Juster F.P and Watchel,P.. (1972). A note on Inflation and saving rate. Rrnnkins,v Panprs on
Economic Activitvy. pp765-778.

Madura, J., 2012, International Corporate Finance, 11th Edition, South Western, Cengage
Learning

Moffett, M., H., Stonehill, A., I., Eiteman, D., K., 2012, Fundamentals of Multinational
Finance, 4th Edition, Pearson, Upper Saddle River, New Jersey

Ratprasatporn,P. and Thienpreecha. (2002). FOREIGN INVESTMENT IN THAILAND:
REVIEW OF THE CURRENT LEGISLATIVE REGIME. Tilleke & Gibbins International. s

Sloman, J., 2006, Economics, 6th Edition, Prentice Hall, Harlow

Taylor,M.P.. (1995). The Economics of Exchange Rates. Journal of Economic Literature. 33
pp13-47.
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8.2 Online Resources
Asmundson, I. & Oner, C. (2012) What Is Money? [online]. Available at:
http://www.imf.org/external/pubs/ft/fandd/2012/09/basics.htm [Accessed 10 October 2012]

Biz/ed (2012) The Impact of a Rise in Interest Rates on UK Sterling Exchange Rate [online].
Available at:
http://www.bized.co.uk/learn/economics/govpol/macropolicies/interest/exchange/index.htm?
page=4 [Accessed 10 October 2012]

Bofah, K. (2012) The Effects of Interest Rates on Currency Rates [online]. Available at:
http://www.ehow.com/facts_6005312_effects-interest-rates-currency-rates.html [Accessed 10
October 2012]

Business Dictionary (2012) Exchange Rate [online]. Available at:
http://www.businessdictionary.com/definition/exchange-rate.html [Accessed 10 October
2012]

Carbonnel, E. (2008) How Inflation Creates Hyperinflation [online]. Available at:
http://www.marketskeptics.com/2008/12/how-deflation-creates-hyperinflation.html
[Accessed 10 October 2012]

CMSForex (2012) Lesson 4: Exchange Rates and Supply and Demand [online]. Available at:
http://www.cmsfx.com/en/forex-education/online-forex-course/chapter-2-fundamental-
factors/exchange-rates-supply-and-demand/supply-and-demand/ [Accessed 10 October 2012]

Erik (2012) How can inflation affect currency trading in the forex market? [online]. Available
at: http://www.ikonfx.com/forexblog/how-inflation-affects-currency-trading/ [Accessed 10
October 2012]

eToro Online Forex Trading (2012) How inflation and deflation affect currency fluctuation
[online]. Available at: http://www.etoro.com/education/how-inflation-and-deflation-affect-
currency-fluctuation.aspx [Accessed 10 October 2012]

Federal Reserve Bank of San Francisco (2003) Is Official Foreign Exchange Intervention
Effective? [online]. Available at:
http://www.frbsf.org/publications/economics/letter/2003/el2003-20.html [Accessed 10
October 2012]

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Forex traders (2011) The Impact of Inflation Measures on the Forex Market [online].
Available at: http://www.forextraders.com/forex-strategy/the-impact-of-inflation-measures-
on-the-forex-market.html [Accessed 10 October 2012]

Grabianowski, E. (2012) What exactly is inflation? [online]. Available at:
http://money.howstuffworks.com/question737.htm [Accessed 10 October 2012]

Hansen, S. W. (2006) Supply and Demand in Currency Markets [online]. Available at:
http://www.forbes.com/2006/08/23/forex-trading-education-in_swh_0823investools_inl.html

Investopedia (2007) How do central banks inject money into the economy? [online].
Available at: http://www.investopedia.com/ask/answers/07/central-banks.asp [Accessed 10
October 2012]

Investopedia (2009) Forces Behind Interest Rates [online]. Available at:
http://www.investopedia.com/articles/03/111203.asp [Accessed 10 October 2012]

Investopedia (2010) 6 Factors That Influence Exchange Rates [online]. Available at:
http://www.investopedia.com/articles/basics/04/050704.asp [Accessed 10 October 2012]

Investopedia (2012) Exchange Rate [online]. Available at:
http://www.investopedia.com/terms/e/exchangerate.asp [Accessed 10 October 2012]

Investopedia (2012) Forex Walkthrough; Level 5 Economics – Inflation [online]. Available at:
http://www.investopedia.com/walkthrough/forex/intermediate/level5/inflation.aspx

Investopedia (2012) Inflation [online]. Available at:
http://www.investopedia.com/terms/i/inflation.asp [Accessed 10 October 2012]

Lien, K. (2012) Why Central Banks and Interest Rates are so Important [online]. Available at:
http://finance.yahoo.com/education/currencies/article/106078/Why_central_banks_and_intere
st_rates_are_so_important [Accessed 10 October 2012]

Madura, J. (2012) International Financial Management, 11th Edition, South-Western,
Cengage Learning

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MindXpansion (2008) Factors Influencing Currency Exchange Rates [online]. Available at:
http://www.mindxpansion.com/forex/factors_influencing_currency_exchange_rates.php

Ministry of Finance Japan (2012) Chapter 1: Causes and characteristics of the Asian
Currency Crises [online]. Available at:
http://www.mof.go.jp/english/about_mof/councils/customs_foreign_exchange/report/e1a703
d.htm [Accessed 10 October 2012]

Nolan, M. (2007) Higher interest rates – stronger currency? [online]. Available at:
http://tvhe.wordpress.com/2007/11/22/higher-interest-rates-stronger-currency/ [Accessed 10
October 2012]

Piana, V. (2001) Exchange Rate [online]. Available at:
http://www.economicswebinstitute.org/glossary/exchrate.htm [Accessed 10 October 2012]

Roos, D. (2012) How interest rates work [online]. Available at:
http://money.howstuffworks.com/interest-rate4.htm [Accessed 10 October 2012]

Russell, J. (2012) Supply & Demand: How They Move Currencies [online]. Available at:
http://forextrading.about.com/od/fundamentalanalysis/a/supplydemand_ro.htm [Accessed 10
October 2012]

Scharinger, J. (2012) Thailand in the Face of the 1997 Asian Crisis and the Current Financial
Crisis: An Interview With Johannes Dragsbcek Schmidt [online]. Available at:
http://www.seas.at/aseas/3_1/ASEAS_3_1_A6.pdf [Accessed 10 October 2012]

The Economist (2007) Ten years on: How Asia shrugged off its economic crisis [online].
Available at: http://www.economist.com/node/9432495 [Accessed 10 October 2012]

The Global Economics Game (2012) The Foreign Exchange Market [online]. Available at:
http://www.worldgameofeconomics.com/exchangerates.htm [Accessed 10 October 2012]

Wolfe, M. (2012) How Interest Rates Affect Currency [online]. Available at:
http://www.ehow.com/info_8106415_interest-rates-effect-currency.html [Accessed 10
October 2012]

9.0 Appendixes (refer to the CD)
Page | 17

Chan chee m ang tp021569

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