https://firstgrader.net/wp-content/uploads/2020/04/logo-300x75.png 0 0 Peninah White https://firstgrader.net/wp-content/uploads/2020/04/logo-300x75.png Peninah White2020-07-10 12:56:012020-07-10 13:00:37Explain how exchange rates are considered a self-correcting mechanism of international trade.
- Explain how exchange rates are considered a self-correcting mechanism of international trade.
- Explain with examples (at least 3) of arbitrage in exchange rates.
- Explain how a country’s balances of payment directly affect the exchange rate.
- Explain the many reasons why companies locate outside of their home country.
- Explain how the balance of payments is balanced. What pays for a current account defeicit or a capital account surplus.
- Explain the relationship between interest rates and exchange rates.