Foreign Exchange
There are price differences between the U.S. And UK sites for Toys 'r' Us. One example is the animated Talking Ben stuffed bear, which sells for $9.99 in the U.S. And £21.99 in the UK. The equivalent U.S. price in the UK should be £6.56, so there is a substantial price difference on this product.

Consumers do not, however, have the right to demand equal prices. Each nation represents its own market, so the economic conditions for each nation will be distinct. There are significant differences in the costs that underlie each product on retail shelves that are reflected in the retail price. Thus, the conditions for each market are different and the result will be different prices. Goods can flow across borders, but that does not imply that there is a global market -- each local market has its own conditions.

Furthermore, retail prices for consumer goods do not direct…...

In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental initiatives in eastern Europe as well. Likewise, Arbed of Luxemburg was involved in steelmaking facilities in the former East Germany. According to Mangum et al., "The rising market for improved galvanizing for automobiles, appliances, canning, and other uses is producing a rash of joint ventures throughout the world. Some of these are internal to various countries and others involve international partners" (p. 74).
As a result, nearly 30% of the world's steel supply is now produced by plants belonging to companies that did not exist just 3 decades ago (Ahlberg, Pitkanen & Storsch 1999). As these authors point out, "Such upstarts have entered a global market that since 1980 has grown by less than 1% a year -- an average combining…...

mla

References

Ahlberg, J., A. Pitkanen and L.L. Schorsch. 1999. "Forging a New Era for Steel." The McKinsey

Quarterly 83.

Altunisik, M.B. And O. Tur. 2004. Turkey: Challenges of Continuity and Change. New York:

Routledge.

Foreign Exchange
South Africa

he currency in South Africa is the rand. he rand is a free floating currency meaning that there are few controls on the value of the currency. While the rand is a reference currency in the southern Africa region, it is not considered to be a "hard" currency. he performance of the rand against the USD in the past year is as follows:

he chart shows the downward trajectory of the rand against the dollar. A year ago, the rand traded at 7.73 to the dollar, and today it is 9.12, a decline of 18%. his bodes well for a manufacturing operation in South Africa, where the already-low labor costs would be decreasing over time. It does not bode well for selling in South Africa, however, as the country's currency continues to get weaker, which means profits from South Africa will be worth less in dollar terms.

he trend is…...

mla

The Chinese yuan is not a floating currency. Its exchange rate is managed heavily by the Chinese government and as a result trades within a band set by the Chinese government, on a soft peg to the U.S. dollar. China's currency manipulation may perpetuate the band, but the country is under severe inflationary pressure. This puts the yuan on a steady, long-run appreciation, which can be seen in its chart for the past year:

The yuan one year ago traded at 6.29 to the dollar and today it trades at 6.23. This represents an appreciation of 0.9%. The country face high inflation for much of the year, but that inflation is reported to have dropped to 2.1% in March 2013. This inflation rate is not much different than that of the U.S., which would imply that the exchange rate should remain fairly stable. However, the overriding factor is China's currency band, which is likely to be maintained for the foreseeable future. As a result, the yuan will appreciate in the next year, but only by around the same amount as last year, so that the rate will be around 6.17 yuan to the dollar.

Overall, China represents the best option for Dorchester for selling it televisions. This is almost by default. South Africa is facing a weakening rand amid economic uncertainty. The country still has potential, but the timing is wrong given that the macroeconomic conditions are tough and the rand is depreciating faster than the inflation rate. The situation in Japan is worse. The economy might be better, but the yen is depreciating and there is deflation in the economy. This is bad news all round, and earning yen right now it not wise. This leaves China. China has its own problems -- growth is slowing and currency controls mean that there is a difference between earning yuan and being able to return those earnings to the United States. However, the slow appreciation of the yuan and some overtures to convertibility highlight the reality that China is a fairly safe country in which to invest, in terms of currency exchange rate expectations.

One of the more popular analytical methods that is used with MT4 that is used to coordinate share trades is based on the Fibonnaci series (each number in this series except one is the product of the preceding two numbers; i.e., 1, 2, 3, 5, 8, 13 & #8230;). This Fibonacci series is used in quantitative trading systems such as MT4 to help traders modify their investments in real-time as the market changes as described further below.
2- Fibonacci

The Fibonacci series can be found throughout nature in the way a pinecone grows when viewed from above or the patterns in a seashell such as the nautilus. Humans have a natural affinity for the Fibonacci series which is also known as the "Golden atio" because it provides an aesthetic that is pleasing to humans (Gelet, 2009). Also pleasing to humans is the power of the Fibonacci series to help manage Forex…...

mla

References

Artis, M. & Weber, A. (2000). The Euro: A challenge and opportunity for financial markets.

London: Routledge.

About Us. (2010). PIPPoint Forex Brokerage. Retrieved from http://pippoint.net/index.php?option=com_content&view=frontpage&Itemid=75.

Salcedo, Y. (2004, April). Forex FCM report. Futures, 33(5), 33-34.

Foreign Exchange isk Management
a) What are the causes of UK and Brazilian markets' revenues in Dollars being lower than expected?

One of the main causes of the revenue in dollars generated from the markets in Brazil and UK being lower than anticipated by the company is due to the depreciation of the countries' currencies against the U.S. dollar. Between January and September, the GBP constantly depreciated against the USD, an aspect that had not been anticipated by the financial team of the company.

b) How is the company doing in these markets?

The company is not operating well in these two markets as the revenues generated in the market have incessantly decreased in the nine months period. As the currency continue to depreciate against the dollar so has the expected revenue depreciated over the period.

c) Based on the given data, should it continue or cease the operations in these two countries: UK and…...

mla

References

Dohring, B. (2008). Hedging and invoicing strategies to reduce exchange rate exposure: a euro-area perspective. Economic Papers. Retrieved 21 October 2015 from:  http://ec.europa.eu/economy_finance/publications/publication11475_en.pdf 

Gonnelli, A. (1993). The Basics of Foreign Trade and Exchange. Federal Reserve Bank of New York, Public Information Department.

The stability is evident in the statistics as well. Between 1880 and 1914, the golden age of the gold standard, inflation averaged 0.1%. Between 1946-2003, even with Bretton oods, inflation average 4.1% (Bardo, n.d.). Short-term price changes, however, could be highly unstable. This is a consequence of the fact that the gold standard ignores fundamental economic principles. Any system where the value of a good is established by artificial means is subject to such shocks. Another drawback to the gold standard is that it gives governments very little discretion over monetary policy. Another drawback is the cost of producing gold. The gold standard relies on having physical gold reserves. Thus, gold must be produced, and for that there is a cost (Ibid).
ith the decline of Bretton oods, the gold standard died. It was replaced by the modern foreign exchange system. At the core of this system are fiat currencies.…...

mla

Works Cited:

Bordo, Michael D. (no date). The Gold Standard. Concise Encyclopedia of Economics. Retrieved April 11, 2009 from  http://www.econlib.org/library/Enc/GoldStandard.html 

Cohen, Benjamin. (no date). Bretton Woods System. University of California at Santa Barbara Retrieved April 11, 2009 from  http://www.polsci.ucsb.edu/faculty/cohen/inpress/bretton.html

Foreign Monetary System
A monetary system is any structure initiated by the government and mandated to issue currency, acknowledged as the medium of exchange by its citizens and governments of other nations. The central bank manages the monetary system of a country; this same bank has the responsibility of printing money and controlling the economy. Since the colonial period, coins from the European colonies had circulated in all the colonies. The Spanish coins gained dominance due to the scarcity of coins, during this time; the main form of trade was barter trade. The trade-involved items such as rice, tobacco, or animal skins, which took the form of money paper and notes, had varying rates of discount in different colonies rendering them of very low value (onald & Wright, 2006).

The high population in the U.S. called for increased trade and commerce. This forced the United States government to look for ways to…...

mla

References

Ronald, M. & Wright, R.E. (2006). Development of the U.S. Monetary Union. Journal of Financial History Review, 13(1), 19-41.

Anonymous, (2011). Challenges and risks of the International Monetary System. Journal of Economic Review, 22(5), 768.

Eichengreen, B.J. (2008). Globalizing capital: A history of the international monetary system.

Princeton: Princeton University Press.

Exchange Rate Crisis
Exchange rate crises are quite common phenomena in the economic world. From the 1994 Mexican crisis and the 1997 Asian crisis to the 1999 Argentine crisis, currency crises have occurred with a somewhat remarkable frequency. Also, known as currency crises or balance of payments (BOP) crisis, exchange rate crises occur when a country's monetary authority (central bank) has inadequate foreign exchange reserves to sustain its set exchange rates. This is usually caused by trade shocks, persistent budget deficits, foreign interest rate shocks, political uncertainty, banking system weaknesses, and moral hazard problems. An exchange rate crisis is often symbolised by factors such as hyper-inflation, banking crisis, devaluation, and economic recession, clearly indicating the dire consequences a currency crisis can have on the economy. More importantly, an exchange rate crisis can easily spread beyond the national boundary, underscoring the need for measures to prevent the crisis. This paper discusses the…...

country can interfere in the foreign exchange markets. In many cases, the motivation for doing so lies with propping up exporters, by lowering the value of the domestic currency. While this is the most common reason for currency manipulation, it is not the only one. In some cases, currency manipulation aids in the cause of making debt disappear, lowering the value of that debt in order that it might be paid back early. This paper will discuss some of the different ways that countries can affect their exchange rates.
A freely-traded currency should reflect the economic strength of a nation, in particular the expectations for future interest rates. Where expectations for future rates are relatively low, that means that the economy is expected to perform worse. This is the case for Japan. The country has adopted a policy recently of a low yen, in order to provide some spark to…...

mla

References

Kim, Y. & Ying, Y. (2007). An empirical assessment of currency devaluation in East Asian countries. Journal of International Money and Finance. Vol. 26 (2007) 265-283.

Palmer, B. (2012). If currency manipulation is so great for exports, why don't we do it? Slate. Retrieved November 24, 2014 from  http://www.slate.com/articles/news_and_politics/explainer/2012/10/china_currency_manipulation_how_does_it_harm_the_u_s_and_what_can_we_do.html 

Staiger, R. & Sykes, A. (2008). Currency manipulation and world trade. National Bureau of Economic Research. Retrieved November 24, 2014 from  http://www.nber.org/papers/w14600 

The Economist. (2014). A fistful of dollars, or perhaps not. The Economist. Retrieved November 24, 2014 from  http://www.economist.com/blogs/americasview/2014/04/venezuelas-byzantine-exchange-rate-system

exchange rate risk can be hedged. The current cost of the room is £50 per day, which is: 50 * 1.50 = $75.00. For a consumer, the easiest way to hedge this risk would be to purchase pounds today, so that the cost of those pounds is locked in. The transaction is a money-loser because of the time value of money, except that in this situation the nominal amount of pounds is locked in, so the nominal amount of pounds needed will not change. Only the opportunity to make interest on that money changes. For £50 and one year, this amount is negligible, but for larger transactions the time value of money is significant and important, making this an undesirable option.
If the transaction was larger, it could be hedged on the futures market or with interest rate swaps. A forward contract could also be purchased. Futures have a downside…...

mla

Works Cited:

Investopedia. (2011). How are futures used to hedge a position. Investopedia. Retrieved March 27, 2011 from  http://www.investopedia.com/ask/answers/06/futureshedge.asp 

"Foreign exchange forward." (2010). Montego Data. Retrieved March 27, 2011 from http://www.montegodata.co.uk/consult/fx/fxforward.htm

forward discount in predicting exchange rate modifications. The conclusion of the literature review is that the forward discount is a biased predictor and that are two possible explanations for this situation. One cause would be the presence of a time varying risk premium, and the other the failure of agents to make rational expectations (the inability to use all available information in an efficient manner).
The forward discount puzzle (as a predictor of exchange rate modifications) is a very discussed puzzle in the international finance literature, since its importance is quite high. As a result, numerous studies have concentrated on this issue, i.e. On the causes on the bias. Some authors (Fama, 1984), believe that this problem is traceable to the existence of a time-varying risk premium. Others connect it to learning effect (Lewis, 1989) or irrationality (Bilson, 1981) the "peso problem" (Krasker, 1980),

The "peso problem term" was introduced into…...

mla

REFERENCES

Beng, G.W. And W.K. Siong. (1993) Exchange Rate Expectations and Risk Premium in the Singapore/U.S. Dollar Exchange Rate: Evidence from Survey Data Applied Financial Economics, 3(4), pp. 365-73.

Bilson, John F.O., (1981) The Speculative Efficiency Hypothesis, Journal of Business, 54, pp. 435-452

Cavalgia, S.W., F.C. Verschoor and C.C.P. Wolff (1993a) Further Evidence on Exchange Rate Expectations Journal of International Money and Finance, 12 (1), pp. 78-98.

Cavalgia, S.W., F.C. Verschoor and C.C.P. Wolff (1993b) Asian Exchange Rate Expectations Journal of the Japanese and International Economics, 7(1), pp. 57-77.

Theoretically speaking, there is only one factor affecting the exchange rate of a country adopting a floating exchange rate regime: the supply and demand of the respective currency on the international market. In this sense, if demand exceeds supply, then the value of the currency will go up and the respective currency will appreciate. On the other hand, if supply exceeds demand, the currency will depreciate and the price of the currency will decrease.
Starting from this statement, however, we can discuss several different factors that make the demand and supply vary, affecting thus the exchange. First of all, we have the level of the interest rate in a country. If the interest rates are higher, then foreign investors will choose to enter the national capital markets, purchase local currency and invest in local bonds or T-bills, which bring high returns, due to high interest rates. This mechanism will lead to…...

mla

Bibliography

1. Fixed and Floating Exchange Rates. (2003). On the Internet at  http://www.tutor2u.net/economics/content/topics/exchangerates/fixed_floating.htm 

2. S Johnson (July 2004). Dollar falls as data put focus on U.S. deficit. Financial Times

3. Fixed and Floating Exchange Rates. (2003). On the Internet at

ETFs
The first step is setting up an investment account is to understand the client. Everything flows from this. The client profile is developed through an extensive interview process, wherein the advisor seeks to gain an understanding of the client's personal circumstances, current and envisioned financial situation, risk tolerance and investment knowledge (Anthony, 2011). With this information, the financial advisor can then build a profile based on the portfolio objectives and risk constraints. For this portfolio, the focus will be on exchange-traded funds. The objective of this exercise is to build the optimal portfolio for the client, taking into account the client's personal circumstances and the variety of funds that are available to build the portfolio.

Client Profile

The client is a male, late 20s, with a long-term girlfriend. They have no current plans for children. They are American, living and working in Miami, and therefore are eligible to purchase securities on American…...

mla

References

Anthony, M. (2011). The evolving client profile. Financial Advisor Magazine. Retrieved November 30, 2013 from http://www.fa-mag.com/news/the-evolving-client-profile-7650.html

Baidu 2012 Annual Report. Retrieved November 30, 2013 from  http://media.corporate-ir.net/media_files/IROL/18/188488/BaiduAR2012.pdf 

BIO. (2013) What is biotechnology? Biotechnology Industry Organization. Retrieved November 30, 2013 from  http://www.bio.org/node/517 

CBO. (2013). Economic projections. Congressional Budget Office. Retrieved November 30, 2013 from  http://www.cbo.gov/topics/economy/economic-projections

S. billion in 1998. eported as the dominant source of inward FDI in China is that of Hong Kong, followed by Japan, the U.S. And Taiwan.
Summary and Conclusion

This study set out to examine Foreign Direct Investment in China by the multinational enterprise. At present China is a primary source for foreign direct investment due to the favorable laws and regulations governing Foreign Direct Investment in China and the attempt to make location siting of the organization equitable and fair. China has been attempting to pull the company in line with their own expectations as have the multinational enterprises who desire to directly invest foreign funds into China.

eferences

Investment (2008) Multinational Corporations. Cush & Wakefield. etrieved from: http://www.cushwake.com/cwglobal/jsp/audienceDetail.jsp?audienceId=18&Country=900095&Language=EN&groupBy=audience

Kroll, CA and Bardhan, a. (2007) Globalization and the eal Estate Industry: Issues, Implications, Opportunities Haas School of Business, UC Berkeley, Paper Prepared for the Sloan Industry Studies Annual Conference. Cambridge, April 2007. etrieved from:…...

mla

References

Investment (2008) Multinational Corporations. Cush & Wakefield. Retrieved from:  http://www.cushwake.com/cwglobal/jsp/audienceDetail.jsp?audienceId=18&Country=900095&Language=EN&groupBy=audience 

Kroll, CA and Bardhan, a. (2007) Globalization and the Real Estate Industry: Issues, Implications, Opportunities Haas School of Business, UC Berkeley, Paper Prepared for the Sloan Industry Studies Annual Conference. Cambridge, April 2007. Retrieved from:  http://web.mit.edu/sis07/www/kroll.pdf 

MULTINATIONAL CORPORATIONS (nd) Cush and Wakefield. Retrieved from:

S. directly. Evidently, the long-term objectives indirectly face the smooth running of the U.S. government. Priority should be given to those aspects that will pull the resources of the country to extreme levels. The U.S. As a super-power is privileged when tackling issues affecting other nations; it is mandated to help developing long-term solutions.
Long-term also implies that the impacts and effects need to be widespread in order to maintain balance and ensure the prosperity of all sectors is recognized. The above long-term objectives are issues that need time and resources in order to be able to resolve the issue that affects the stability of these countries among other issues. The Soviet Union, for example, is crying to have political relations with ussia. This means that the military forces will be deployed to this country. However, the negotiation process is hefty and requires time and adequate resources in order to meet…...

mla

References

Bruce, J. & Bennett, M. (2008). "Foreign Denial and Deception: Analytical Imperatives,"

Analyzing Intelligence: Origins, Obstacles, and Innovations. Washington, DC:

Burch, J. (2008). The Domestic Intelligence Gap: Progress Since 9/11? Homeland Security

Affairs, 2.

Importance of Understanding the Law on E-Commerce

E-commerce, or electronic commerce, has revolutionized the way businesses and consumers interact. With the rise of the internet and digital technologies, transactions are increasingly taking place online, creating both opportunities and challenges that require a thorough understanding of the legal framework governing e-commerce.

1. Consumer Protection

E-commerce laws aim to protect consumers from unfair or deceptive practices. Consumers have specific rights related to online purchases, including:

Right to Accurate Information: Merchants must provide clear and accurate information about products and services, including descriptions, prices, and delivery terms.
Right to Return Goods: Consumers may have the right....

The financial market is a platform where individuals and entities trade financial securities, such as stocks, bonds, and currencies. Its key components include stock exchanges, bond markets, and foreign exchange markets. The main functions of the financial market are to facilitate the allocation of capital, price discovery, and risk management for participants. It also provides liquidity and enables investors to buy and sell financial assets.
The financial market also plays a crucial role in economic growth by channeling funds from savers to borrowers, aiding in capital formation. Additionally, it serves as a barometer of the overall health of the economy, reflecting....

Components of the Financial Market

The financial market is a complex and dynamic system that plays a crucial role in the allocation of capital and the facilitation of economic growth. It consists of various components that interact to facilitate the flow of funds between borrowers and lenders. These components include:

Financial Institutions
Banks: Provide lending, deposit-taking, and other financial services.
Investment banks: Underwrite and sell securities, providing capital to corporations and governments.
Broker-dealers: Execute trades for clients in various financial instruments.
Insurance companies: Provide protection against risk by offering insurance policies.
Mutual funds: Pool investments from multiple individuals to provide diversified portfolios.
....