some pros and cons of exchange rate in International trade or the author had facing the problem when doing this research. According to Nicita (2013); Auboin and Ruta (2012) had found exchange rate misalignment do affect international trade flows in a substantial manner and the currency undervaluation is found to promote exports and restrict imports, moreover, in magnitudes misalignment across currencies result in trade diversion quantifiable in about one percent of world trade. According to Wong (2004)
fluctuating exchange rate. A fluctuating exchange rate may not augur well with a country’s growth; manufacturers tend to postpone job creation due to the uncertainty brought about by the volatility of exchange rate. It is argued that although this concept concerns investment projects, hiring workers represents an investment in the sense that there are high costs to reversing this decision, particularly if dismissal regulation is strict. Studies have shown that the volatility of exchange rate has impact
The foreign exchange market also know as Forex, is one of the most exciting, fast-paced markets around the world. The participants are able to buy, sell, exchange and conjecture on the currencies in the market. Currencies are important to the people because they need currencies to do the transaction on the foreign trade and business. For example, if you are living in Malaysia and you want to buy white wine from France, either you or the company must pay in euro currencies in order to get import from
real world, unpredictable volatility or shock is always a challenge or a test for an individual, firm, and country as well. Economic shock has its own wide meaning and its effect
the main stay of the Nigerian economy, volatility in the price of oil are to a large extent of prime interest to economist. According to Adeniyi et al (2004), exchange rate appreciate in response to rising oil prices and depreciates in response to falling oil prices in oil producing exporting countries while the reverse is the case in oil importing countries. therefore, the impact (positive or negative) which oil price could have on exchange rate volatility of a country depends on what part
the main stay of the Nigerian economy, volatility in the price of oil are to a large extent of prime interest to economist. According to Adeniyi et al (2004), exchange rate appreciate in response to rising oil prices and depreciates in response to falling oil prices in oil producing exporting countries while the reverse is the case in oil importing countries. therefore, the impact (positive or negative) which oil price could have on exchange rate volatility of a country depends on what part
A6030115037 INTRODUCTION Exchange rate between the two currencies is the rate at which one currency is exchanged for another currency. It can also be regarded as the value of the currency of one country in relation to the currency of the other country. The fluctuations in the exchange rate occur when the values of either component currencies change. There are various factors that lead to the determination and fluctuation in exchange rate which could be inflation rate, rate of interest, public debt
consumers and businesses have declined their demand of company products and services in response to tighter credit, higher unemployment, negative financial news, and financial market volatility even decreased in income or asset value. Besides, the fluctuation of currency such as interest rates and foreign currency rates affect the demand different
Introduction Over the recent international financial market has become very popular because it simplifies the trade between countries. People can enter to sell or to buy financial assets since borrowers and lenders can enter to the commitment of financing each other through this market. This market is segmented into money market and capital market, money market is associate with buying and selling of assets in a short term period which occurs not more than one year. Example of money market products
world spice trade from 2006-07 to 2008-09. Spices stable rose to more than 75 per cent of total spices traded from the country. Yet no attempt has been made to understand the ground of changes in fares of major Indian spices. Kusuma, D.K. and Basavaraja, H. (2014) analysed the changing structure of Indian mango exports the data for analysis was taken for a period of 10 years from 2001-02 to 2010-11. Compound Annual Growth Rate (CAGR) was used for analyzing