International Financial Environment: Exchange Rate
NASDAQ, New York, America∗
International business operations are highly subjected to the international financial environment. The operations are conducted within the prevailing international monetary system, in which the exchange rate plays a very crucial role. The objective of the present chapter is to:
- Discuss the exchange rate regime beginning from the early days to the present one.
- Show how exchange rates are quoted.
- Explain how the exchange rate is determined in the spot market as well as in the forward market and the factors infiuencing exchange rate determination. ...