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The Foreign Exchange Market
- Locate a website that provides real time exchange rates
- Find the spot exchange rate for your country’s currency
- Include a one year currency chart showing the monthly movement between the US Dollar and your county’s currency
- If a hotel room rate was $210 USD, in your destination country how much would a US tourist pay for the room in the local currency? How much would he have paid one year ago? What does this suggest about the exchange rate between the US dollar and your countries currency? Is this a good time to travel to your destination country? Why or why not?
- Discuss the one-year currency trend. What direction is your currency moving in relation to the US Dollar. Why is this happening and what do you anticipate for future movement?
- How might fluctuating currency exchange rates specifically effect your business venture? How could your company hedge against future currency risk?
The Impact of the Global Monetary system
- Locate the Global Financial Stability Report for 2017
- Briefly summarize the most current data available for financial stability risk in your destination country.
- Explain the implications of a global monetary system on your currency management and your selected business strategy
