identify two factors that may be contributing to exchange rate volatility in your country during the...

identify two factors that may be contributing to exchange rate volatility in your country during the last 12 months. b. if you were the economic for your business organisation, what advice would you give so as to mitigate the risks associated with exchange rate volatility over the next 12 months. substantiate your answer

Expert Solution

(a)

Currency depreciation is decrease in the value of currency in a floating exchange rate systems. It can occur due to factors like interest rate differentials, economic fundamentals and invertor's risk aversion.

Tourism

Countries that have diversified range to visitors market tend to be more resellient against specific exchange rate margins compared to those who rely on specific visitor market.

(b)

Setting up foreign currency account. So receive payments or pay bills in a foreign currency.
Using currency option. Where protect a certain exchange rate and able to participate if market rate moves.

Rahul Sunny answered 2 years ago

a. identify two factors that may be contributing to exchange rate volatility in your country during...

a. identify two factors that may be contributing to exchange rate volatility in your country during south Africa in the last 12 months. b. if you were the economic for your business organisation, what advice would you give so as to mitigate the risks associated with exchange rate volatility over the next 12 months. substantiate your answer.

Compare and contrast country risk analysis with exchange rate volatility.

Discuss the main factors that explain exchange rates and briefly examine how exchange rate volatility can...

Discuss the main factors that explain exchange rates and briefly examine how exchange rate volatility can impact MNCs.

What factors may be contributing to urinary inconvenience.

(a) Identify the factors that affect equilibrium exchange rate for any foreign currency of your choice....

(a) Identify the factors that affect equilibrium exchange rate for any foreign currency of your choice. Use appropriate graphical illustrations to describe how two of the identified factors affect the equilibrium exchange rate. (b)Explain the concept of the J-curve in the context of Balance of Trade deficit. In your explanation, state the significance of price elasticity of import demand.

-Identify and discuss factors contributing to the nursing shortage in your community, your state and nationally....

-Identify and discuss factors contributing to the nursing shortage in your community, your state and nationally. -Identify and present strategies for recruitment and retention of high quality nursing professionals. -What are the leadership and management implications for staff turnover?

An exchange rate is currently $2.00. The volatility of the exchange rate is 20% and interest...

An exchange rate is currently $2.00. The volatility of the exchange rate is 20% and interest rates in the two countries are the same. Using the Black-Scholes model, estimate the probability that the exchange rate in one year will be between $1.70 and $2.30.

In your opinion, can exchange rate volatility be managed? Why or why not? Explain your answer.

A country may find it difficult to maintain a pegged exchange rate system in the face...

A country may find it difficult to maintain a pegged exchange rate system in the face of (Strong or Weak) economic conditions. True or False: The value of many Asian currencies, that were pegged to the dollar in the 1990’s, could not be sustained during economic downturns. True or False: In order to maintain the currency board, the interest rate in the two countries must be similar.

what is exchange rate and factors that determines demand for exchange rate

Question