In today’s global economy, exchange rates have a significant influence on a firm’s competitive position. It is critical, therefore, that business managers understand exchange rates so that they can make informed decisions and manage risks in order to better compete in the marketplace. Exchange rates, however, can be misunderstood. Indeed, managers often don’t know what they are, how to calculate them, or how they impact the firm. This note provides definitional information and a basic analytical tool set with which to understand exchange rates and their effect on business performance.
Note on Understanding Exchange Rates
by: Robert E. Kennedy
Publication Date: March 31, 2008
Length: 8 pages
Product ID#: 1-428-646
Core Disciplines: Economics, International Business, Strategy & Management
Partner Collection:
Available Documents
Click on any button below to view the available document.
Don't see the document you need?
Don't See the Document You Need?
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
$3.95
Need to make copies?
If you need to make copies, you MUST purchase the corresponding number of permissions, and you must own a single copy of the product.
Electronic Downloads are available immediately after purchase. "Quantity" reflects the number of copies you intend to use. Unauthorized distribution of these files is prohibited pursuant to term of use of this website.
Teaching Note
This product does not have a teaching note.
Description
Teaching Objectives
After reading and discussing the material, students should:
- Describe how exchange rates are quoted.
- Explain the difference between "nominal" and "real" exchange rates.
- Recognize the differences between currency appreciation and depreciation.