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September 11, 2020

Pick 4 of the following 6 questions.Explain how exchange r

Pick 4 of the following 6 questions.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.

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