Forex and Treasury

sunandaC

New member
International exchange takes place not by barter but through the medium of money. Trade occurs the buying and selling of commodities for dollars or pounds or other currencies. Further, international trade allows the nations to raise their standard of living by specializing in areas of comparative advantage, exporting goods in which they are relatively efficient and importing those in which they are relatively inefficient.

Yet the forces of comparative advantage are not the whole story. Some countries have managed their economies well, opening their economies, adapting to the evolving technologies and markets in the world economy, growing and prospering, others have fallen behind, either because they are trapped in the vicious cycle of poverty or because of war, corruption and the heavy hand of the government regulations have snuffed out the flames of entrepreneurship and wretched the best laid plans.


The rate of exchange means the price of one currency in terms of another currency. Different countries have adopted different exchange rate systems at different times like the Gold Bullion, Gold Standard and the Bretton Woods System. The last system was soon replaced by the Floating rate system. The report then deals with the Indian Exchange rate system and outlines the major changes in this regard.

The report further deals with the historical determinants of the Exchange rates and gives various models and theories of Exchange rates like the Purchasing Power Parity Theory, The Dorn Bush Theory and the Mundell Fleming Model.


From the project, I have learned that Foreign Exchange Rates keep on fluctuations the various factors.

These changes affect the markets conditions and have a great impact on the exports and imports of a country. Therefore foreign exchange and risk management play a pivotal role in international trade.
 

rosemarry2

MP Guru
International exchange takes place not by barter but through the medium of money. Trade occurs the buying and selling of commodities for dollars or pounds or other currencies. Further, international trade allows the nations to raise their standard of living by specializing in areas of comparative advantage, exporting goods in which they are relatively efficient and importing those in which they are relatively inefficient.

Yet the forces of comparative advantage are not the whole story. Some countries have managed their economies well, opening their economies, adapting to the evolving technologies and markets in the world economy, growing and prospering, others have fallen behind, either because they are trapped in the vicious cycle of poverty or because of war, corruption and the heavy hand of the government regulations have snuffed out the flames of entrepreneurship and wretched the best laid plans.


The rate of exchange means the price of one currency in terms of another currency. Different countries have adopted different exchange rate systems at different times like the Gold Bullion, Gold Standard and the Bretton Woods System. The last system was soon replaced by the Floating rate system. The report then deals with the Indian Exchange rate system and outlines the major changes in this regard.

The report further deals with the historical determinants of the Exchange rates and gives various models and theories of Exchange rates like the Purchasing Power Parity Theory, The Dorn Bush Theory and the Mundell Fleming Model.


From the project, I have learned that Foreign Exchange Rates keep on fluctuations the various factors.

These changes affect the markets conditions and have a great impact on the exports and imports of a country. Therefore foreign exchange and risk management play a pivotal role in international trade.

Hey dear,

Here I am uploading Finance Treasury Managemement - KPMG, so please download and check it.
 

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