Currency Article Reviews Samples For Students

Currency Wars

Currency Wars is also referred to as competitive devaluation. It is a scenario where countries compete against each other to gain a low exchange rate for their own domestic currency. As the country’s domestic currency falls, so does the price of exports from that country. The imports become expensive and the domestic industry flourishes due to increase in demand from the domestic and foreign markets. The leaders of G-20 nations met in Moscow and took some important decisions regarding currency wars. In a statement issued at the conclusion of the conference, the finance ministers of G20 promised, by issuing a statement, that ...

Bitcoin is purely peer-peer electronic cash that makes it possible for online money payments to be remitted directly from one party to the other without having to go through financial institutions. With bitcoin, digital signatures are considered part of the solution but the problem arises when the trusted third party is needed to curtail any form of double spending. The solution to this double spending lies in bitcoin; this is because it timestamps transactions by hashing them into a hash-based work proof. This makes it form a network that will not be altered unless the proof-of work is redone. Bitcoin has ...

What did you learn from this article?

The United States currency has for a long time been used in the international monetary system to facilitate cross border trade transactions. However, the global economic and financial crisis experienced in 2009 exposed the vulnerabilities of the U.S. currency. The effect of the crisis on the United States economy sent an array of fears among many users of the currency. On the other hand, China has emerged as a powerful participant in international trade.
The Chinese government facilitates a significant volume of trade across its borders. The Chinese government has openly challenged the reliability of the U.S. currency as a ‘key’ currency ...

OPEN- ECONOMICY MACROECONOMICS

Fixed versus Flexible Exchange Regime, Determination of Exchange Rate in Free Markets:
Fixed currency exchange rate, or in other terms pegged exchange rate denotes the fixation of a currency value against any other currency or to a whole lot of other currencies. This is usually done for stabilization of the currency pegged to the other currencies. Floating Exchange Rate is the exchange rate of the currency value which is fixed by the free market. The exchange rate of a currency is variable depending upon the amount kept in foreign reserve and fluctuating demand and supply of the particular currency.
Another ...

Article Review

Executive summary
Since the 2008 recession—when financial instability resulted in the losses and insolvency of several banks and firms—there is an increased cautiousness about international investments and lending experiences in not just the emerging-market countries, but in any foreign soil. This article discusses the use of bonds by firms investing in international markets to avoid the adversities caused by exchange-rate fluctuations. While foreign-exchange risk is still being hedged by currency swaps and futures contracts, bonds in the local currency are being used increasingly by investing companies. They use the cash flow generated from the sales in ...

Kyle Torpey. “Hyperinflation in Venezuela: How Bitcoin May Help.” Inside Bitcoins.
The problem with the Venezuelan economy is that it has been collapsing for a long time so far. Bolivar, endemic currency, has lost in value so significantly that nowadays even the biggest bill in the Venezuelan system costs maximum sixty American cents. That is why the Venezuelan economy badly needs a boost.
Potentially a very good boost of Venezuelan economy may be introducing bitcoin. The idea is to trade bolivars to bitcoins and therefore reduce the amount of bolivars in Venezuela therefore increasing their value. However, there is ...

International Business

Culture Risk, the European Union and the United Kingdom
Introduction

Financial risk is not the only risk that faces international business managers. Now-a-days there is financial risk, culture risk and even environmental risk which must be determined. The United Kingdom has a special relationship with the European Union. The difference with the biggest impact for businesses is the fact that the UK did not adopt the single currency, Euro, with the rest of the European member countries.

This paper addresses the reasons the UK didn’t sign on to the single currency. Also a discussion is offered to try to ...

Introduction:

The government policy target of Nigeria for the minimization of credit cards use in Nigeria in areas involving alien transactions; control measures of foreign exchange and the overall implications
Exchange Control: The regulations that are adopted by the state for the management of foreign and local level currency amounts that are globally traded in the market. It generally includes ban and restriction of the exchange amount.
Demand-Supply: The theory that the forces of demand and supply have an interrelation as a result of an effect on each other for the establishment of the state of equilibrium.
Price Elasticity: The ...

Bose, S. (2016). Xerox (XRX) Misses on Q1 Earnings, Split Likely in 2016. Zacks. Web. 21 July 2016.
Supriyo Bose (2016) discusses financial results of Xerox Corporation in first-quarter of 2016. Despite a little decline in earnings some years ago and a challenging macroeconomic environment, a company has improved its positions and productivity that resulted in adjusted earnings. The author informs about the current economic environment, financial result of Xerox, and provides points of view of experts on how to increase earnings.

Areas of Agreement

Supriyo Bose (2016) proclaims that Xerox has adopted a decision to provide a three-year strategic transformation program ...

Discuss the risks associated with global investing.

There are various risks associated with global investing. First is the sovereign risk which involves the central bank making changes on its foreign exchange regulations. Failure to pay government debts is also a sovereign risk that may prevent a country from investing globally since it becomes difficult for the country to borrow funds to support its investments. In addition, is the interest rate risk which comes as a result of global investment. Interest rate risk involves the increase of interest rates by banks which in many cases come up during recession period. Central bank increases these rates as a strategy to control inflation ...

Introduction

In every democratic society, a country cannot survive on its own .It requires its neighboring countries to enhance its economic growth and development. To avoid conflict, all neighboring countries demarcate their borders to safeguard their resources and self-interest. Foreign policy relations enable countries to interact with each other especially in trading affairs and international policy discussions. To enhance a country’s external economies of scale dominance, it is necessary to observe the policies of other nations. Some countries advance their relations further to form a single union with common interests. For instance, United States of America was formed as a resolution of harmonious ...

Evidence showing that RBA is justified in considering an interest rate fall

At the beginning of the month of May, the Australian cash rate was said to be at 2.75%. This statistic was achieved shortly after the May’s bank rates were cut by the Reserve bank of Australia. This marked the lowest cut level achieved in the last 53 fiscal years in this country. The RBA’s board should consider cutting the cash rate because of the prevailing economic conditions in Australia today. The country’s financial markets are currently trading at a 14% chance of suffering a 25 basis points reduction; this sentiment was echoed by Credit Suisse while advocating for ...

Introduction:

This article gives an analysis of the recession and the youth unemployment in EU. This gives much focus on the economy of countries like Spain, France and Italy in relation to their budget and the impact on the youth unemployment and the general effect on the economy. The article also shows measure taken by the European Commission in trying to curb the economic recession with help of various monetary and fiscal policies.(Basci,2007:19) The commission also gave the measures taken in relation to the debt crisis in Germany and the EU in general without much alteration of spending ...

Affiliated Institution

Define the term trade deficit and select the one article that you wish to discuss on the topic trade deficit
Trade deficit is used in measuring the balance of trade, the balance of trade is said to be at equilibrium when the imports are equal to the exports, however when there is a negative result, that is the imports are more than the exports then it is termed as a trade deficit (Schultz, 2012). Within the international business cycles trade deficits usually occur but are corrected by market forces and equilibrium is achieved and the market clears. An extended trade ...

The William Boston’s article titled “Merkel Backs Bond Buying Program” reports the move by the German Chancellor, at a summer news conference in Berlin, to back the process of buying bonds by the European Central Bank (ECB) in a move that could only be perceived as an endorsement of the ECB president, Mario Draghi, in a manner that would not in any way undermine the position of Germany’s Central Bank (The Bundesbank), whose president, Jens Weidmann, has been a strong critic of the bond-buying process. According Boston, Merkel, while professing her incertitude about the ability of Europe to establish a common regulator for ...

TACKLING UNEMPLOYMENT IN THE US

According to Alan Tonelson of the Bloomberg weekly, the only way to reduce the unemployment rate in the U.S. is by ensuring fair trade internationally and by American’s; corporate, government agencies and the citizens buying American products. In so doing America would be reducing its huge trade deficit that currently sits as $422. 9 billion as of June this year making a significant increase of 3.9% compared to the same period last year. The likelihood of creating employment opportunities in the country largely depends on how international trade between the U.S. and its trade partners will be streamlined (Tonelson, ...