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In: Economics

I need to write a forum on spot exchange from a managers perspective in economics not...

I need to write a forum on spot exchange from a managers perspective in economics not less than 75 words. spot exchange- an informal relationship between a buyer and seller in which neither party is obligated to adhere to specific terms for exchange. And what can I name the post.

Solutions

Expert Solution

Role of Managerial Economic in Spot Exchange Market:

A spot exchange involves exchange of one currency with another currency at an agreed exchange rate on a spot date. This transaction is very important from the managerial perspective. It involves different concepts of the economics. The first concept a manager has to apply is the law of demand and supply as it affects the exchange rate. If demand for a currency is higher than the supply, then exchange rate will high. Since the market is not regulated by the exchange, then the volatility will be high in the spot exchange market. The other economic lesson is the forecasting of the spot exchange rate. For a manager, an accurate forecasting of the spot exchange rate can help the manager to save funds, being spent at exchange rate. So, economics helps managers to bring important perspectives in spot exchange activities.

The name of the post will be the Role of Managerial Economic in Spot Exchange Market.


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