国际商务电子教案Chap009.docVIP

International Business: Competing in the Global Marketplace Fifth Edition Chapter 9 PAGE PAGE 139 9 9 Foreign Exchange Market Learning objectives Define the foreign exchange market and explain how it works. Discus the four primary functions of the foreign exchange market. Explore the forces that determine exchange rates. Discuss the degree to which future exchange rates can be predicted. Map out the implications for international businesses of exchange rate movements and the foreign exchange market. The foreign exchange market is the market where currencies are bought and sold and in which currency prices are determined. It is a network of banks, brokers and dealers that exchange currencies 24 hours a day. Traditionally, different countries have different currencies Tourists clearly need to change money when they travel between countries, although in some border towns merchants may accept currency from both countries. Exchange rates determine the value of one currency in terms of another. While dealing in multiple currencies is a requirement of doing business internationally, it also creates risks and significantly alters the attractiveness of different investments and deals over time. The foreign exchange market is used for: 1. Currency conversion , 2. Currency hedging 3. Currency arbitrage 4.Currency speculation Firms can use the foreign exchange market to minimize the risk of adverse changes, but this can prevent them from benefiting from favorable changes. WebeSource HYPERLINK http://news.bbc.co.uk/1/hi/business/3341885.stm http://news.bbc.co.uk/1/hi/business/3341885.stm HYPERLINK http://news.bbc.co.uk/2/hi/business/3200107.stm http://news.bbc.co.uk/2/hi/business/3200107.stm HYPERLINK /publications/economics/letter/2003/el2003-11.html /publications/economics/letter/2003/el2003-11.html HYPERLINK /Publications/subject.asp?id=108 /Publications/subject.asp?id=108 OUTLINE OF CHAPTER 9: FOREIGN EXCH