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Need help writing a 300 word paper analyzing the role of the foreign exchange market in facilitating the global trading positions in India and Japan.

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Analyze the role of the foreign exchange market in facilitating the global trading positions in India and Japan.

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The FOREX market provides the physical and institutional structure through which the money of one country is exchanged for that of another country. Thus, it facilitates the flow of money between India and Japan, as well as between these nations and other countries that wish to trade with India and Japan.

The FOREX market is the mechanism by which participants transfer purchasing power between countries, obtains or provides credit for international trade, and minimizes exposure to exchange rate risk. Transferring of purchasing power is necessary because international trade and capital transactions normally involve parties in countries with different currencies yet each party wishes to transact in their own currency.

Because the movement of goods between countries takes time, inventory in transit must be financed. The FOREX market ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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