Monetary Effects
Not what you're looking for?
International trade is a complex area of study. Effects of policies, currencies, tariffs, trading arrangement, and other variables not only impact a country but a region and the global economy. Examine the monetary aspects of international trade. Explain two monetary effects for balance of payment, foreign exchange, and exchange rate determination.
Purchase this Solution
Solution Summary
This solution explains monetary effects on balance of payments, foreign exchange, and exchange rate determination. The sources used are also included in the solution.
Solution Preview
Step 1
If there is a change in the monetary policy, there will be a monetary effect. This effect will impact the balance of payments. For instance if there is monetary expansion, the real interest rates decrease, this makes domestic financial and capital assets less attractive. Foreigners sell off domestic bonds/stocks/ assets. The financial account deteriorates and the balance of payments becomes adverse.
The second effect of an expansionary monetary policy is that because of lower real interest rates domestic investors will also ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.