Examine the Foreign Exchange Market and its Impact on International Business
Research at least 5 scholarly articles and other resources about the role of the international monetary system, and critically evaluate and discuss the following in your paper:
• Explain how the values of each nation’s (or region’s) currency are determined within the current international monetary system. Note: There is no one way for every currency (such as the <link is hidden> Dollar, the Euro, the Chinese Yuan, the British Pound, etc.); so be sure to discuss several methods.
o Some currencies are called free-floating, meaning the value is determined purely by supply and demand for that currency. However, even in those cases, nations can try to manipulate a currency’s value. Explain how they attempt to do so.
• Interpret how changes in a currency’s value impact the exports and imports of a country’s business firms. Also, explain how it might affect the foreign direct investment decisions of a country’s business firms.
o Provide several examples of <link is hidden> firms that have been impacted either favorably or adversely by the value of the <link is hidden> dollar either in terms of export/import and/or foreign direct investment.
Length: 5-7 pages, not including title and reference pages
References: Include a minimum of 5 scholarly resources.