December 2025
Intermediate to advanced
561 pages
27h 17m
English
book
International Financial Management: An Analytical Framework, 2nd Edition by Pearson
by Thummuluri Siddaiah
Content preview from International Financial Management: An Analytical Framework, 2nd Edition by Pearson
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C H A P T E R
CHAPTER OBJECTIVES
4
Introduction
Exchange rates are important not only for business organizations but also for governments
and individuals. Any change in exchange rates in either direction influences their cash flows.
So, it is in everyone’s interest to know how exchange rates move and what factors influence
them.
Broadly speaking, exchange rates are influenced by product prices and interest rates,
which, in turn, are determined by several factors. Exchange rates are even one such factor.
Changes in exchange rates cause and are caused by changes in product prices and interest
rates. Exchange rates (spot as well as forward), product ...
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