Discussion Board BAFB2113 by Nabilah A. Ghani https://padlet.com/iambelillypad/eu3o862dcra0 Exchange rates and international trade en-us 2016-11-14 06:14:35 UTC 2026-01-05 12:19:52 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Lightdecrease.png Denslee E https://padlet.com/iambelillypad/eu3o862dcra0/wish/139952996                  Base on the article, the currency is bought and sold just like other commodities in the markets or we called it as foreign exchange. They are 3 most common transaction currency exchange which is USD and Euro, USD and Yen, and USD  and Pound Sterling. To understand how the transaction works, we must look into the foreign exchange between the country. Its’ also refer to the market global. The global market considers the demand and supply of the currency exchange to achieved the equilibrium of the market exchange. 

A) The challenge of currency exchange rate:

1. the business trade in global must always exchange their local currency. 

2. all countries want to use their own currency due to paying in the cost of production, however, both need to exchange their currency first to trade the product.

3. for the high currency value, they can purchase better compared to the lower currency value. 

B) How business use “exchange rate” for advantage in conducting the business globally.

1. every currency has a different exchange rate. if the value of the currency is cheaper, mostly the other country will easily buy their product. 

2. for an example, the value of currency for China is cheaper, even the product also cheaper, other countries demand their product.

3. most countries are using USD to buy goods. So, the demand of this currency is very high due to the transaction in business global. 

4. because of that, the USD become the most demand currency in the world. this will help their country to easily do the transaction (export and import) in the market global. 

http://www.economicsonline.co.uk/Competitive_markets/The_foreign_exchange_market.html

 

]]> 2016-11-26 06:27:33 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/139952996 Nur Syahira https://padlet.com/iambelillypad/eu3o862dcra0/wish/142204834 Based on my understanding, exchange rate has a close relationship with international trade. International trade means buying and selling goods and services from other countries or we know as import and export. Because of that more and more firms are becoming multinational enterprises. other than that, exporting and importing can be impacted by changes in international exchange rate.

A) What are the challenges that currency exchange rate pose to doing business in global market?

* Market maker
- If average price offered by market maker is low, then the business in global market automatically slow.

*Trade barriers
- The government from other countries will request additional funds or tariff in exchange for the right to export items into their country. This is also can have a huge effect on the profits of a business because it either cuts revenues from the result of a tax on export or restricts the amount of revenue that can be earn.

B) How can business use exchange rate to their advantage in conducting business globally?

*Consider currency option.
- It is important to identify the currency preferences of your industry. In some circumstances using the local currency may provide you a competitive advantage. When choosing a currency to use, it is helpful to consider what prospective customers prefer and competitor use. For example currency for China a little bit expensive than Malaysia, then we need to consider if we want to conducting business in China.

*Evaluate the need for an international bank account.
- As we know, establishing a bank account in another country can be expensive and time-consuming. In cases where you have payable and receivable in the same foreign currency, a foreign currency account could make good sense. Other than that, foreign currency can help to minimize foreign exchange. 

http://www.shanghaidaily.com/article/article_xinhua.aspx?id=333673


]]> 2016-12-07 06:08:21 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/142204834 Binazir Warno https://padlet.com/iambelillypad/eu3o862dcra0/wish/143469042 An international exchange rate, also known as a foreign exchange rate, is the price of one country's currency in terms of another country's currency. Foreign exchange rates is the value of one currency compared to another currency. When selling products internationally, the exchange rate for the two trading countries' currencies is an important factor. Foreign exchange rates, in fact, are one of the most important determinants of a countries relative level of economic health, ranking just after interest rates and inflation. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world.

1.What are the challenges that currency exchange rates pose to doing business in a global market?

a)Market competition
If a business competes in several markets then it may have the ability to thrive overseas.Companies can improve their competitiveness through the observation of a range of trends in quality, product development, design and packaging.

b)Exchange rates
As a business begins to trade overseas the trust on depending its domestic market reduces and risks can be spread, especially in relation to exchange rates. For example, if a business does most of its trade in US Dollars it may be beneficial for their  business to trade with Japan to spread the exchange rate risk between the Dollar and the Yen, therefore creating benefit for the company because the rate in yen is more low and they and if they are paying in dollar the company get the pros.

2)How can business use exchange rate to their advantage in conducting business globally?

a)Expand proactively.
when it comes to conducting business globally, companies wanted expand internationally without doing their research on about what their going to do and finally ended up putting resources in the wrong places. To avoid this, take a proactive and strategic approach to the business growth when pursuing a foreign market.

b) Consider currency options.
If you’re conducting business overseas, it’s important to identify the currency preferences of your industry. 
Research the norms in your industry before negotiating any contracts or setting product prices. In some circumstances, using the local currency may provide you a competitive advantage. For example some commodities, buyers and sellers may prefer to conduct business in U.S. dollars."
When choosing a currency to use, it's helpful to consider what prospective customers prefer and what competitors use rather than we fixed what we want.Or else we might lost the rate or trade.

https://www.americanactionforum.org/insight/trade-policy-president-trump/





]]> 2016-12-13 19:32:37 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143469042 TASK 2 hattannazar https://padlet.com/iambelillypad/eu3o862dcra0/wish/143565143 By: Nurain Atilia Sahira Binti Mohamad Amir MC1409BC7888

Based on the link  from http://www.imf.org/en/News/Articles/2015/09/28/04/53/sores092815b, according to the IMF research, they did highlighted about three significance things; large currency movements sparked a debate about a disconnect between exchange rates and trade,
IMF study finds that exchange rates still matter, little sign of disconnect over time , and recent currency changes imply sizable cross-country redistribution of net exports.

The challenges that currency exchange rates pose to doing business in a global market is basically will give a huge impact in the rising of global value chain where there are increasing in fragmentation of production across different countries which eventually will lead in weakening a key channel for the transmission of monetary policy, and complicate the reduction of trade imbalances, as in the case of imports exceeding exports, via the adjustment of relative trade prices. (I will explain this in detail in our face to face meeting.)

Exchange rates is most benefit to the exporting firms when depreciation happen. This is because, devaluation will make exports cheaper. However, when appreciation happen, exports become more expensive and it will automatically reduces the competitiveness of exporting firms, but, the good news is that the sales of local products and services eventually will increase in a country.

]]> 2016-12-14 11:34:55 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143565143 Hasnikthe https://padlet.com/iambelillypad/eu3o862dcra0/wish/143762199 According to this article, they highlighted the way of Singapore implementing their monetory policies. Where there are five content, the exchange rate policies, printing money, the basket of currencies, interest rates policies and what investors and consumers should explore and follow. All developed nations use a Central Bank to help regulate and sustain economic growth. Singapore is no different, but its approach to monetary policy is very different. In this article we will explore the Monetary Authority of Singapore (MAS) and several topics which every investor and consumer should be aware of. These can be broken down into two major categories: interest rate policies and exchange rate policies.
http://theindependent.sg/business/what-you-need-to-about-how-monetary-authority-of-singapore-operates/

1. What are the challenges that currency exchange rates pose to doing business in a global market?

- Everyone is trying to lower their interest rates devalue their currencies
 
2. How can business use exchange rates to their advantage in conducting business globally?

- Yuan currency low than Singapore Dollar
- Example: Singapore buy more computer hardware from China because, more cheaper. 



]]> 2016-12-15 03:42:00 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143762199 NOR ATIQAH BINTI ABU BAKAR https://padlet.com/iambelillypad/eu3o862dcra0/wish/143763478 Based on the article, Venezuela currently is recovering their currency, Bolivar by using different of exchange rates system which is called SIMADI (Marginal Currency System). SIMADI allows purchase and sale of foreign currency by businesses and individuals will be allowed at the price set by market forces compared to the fixed exchange rate refers to the regime under which the government or central bank ties the official exchange rate to another country's currency or to the price of gold.

What are the challenges that currency exchange rates pose to doing business in a global market?
Value of money drop
-Purchasing power of the same goods will be vary in different countries when converted into international exchange rate
-E.g Venezuela need to export more oil to the US because the currency in US is higher than Venezuela
Business hard to develop because of inflation
- When currency loses value, firm need to spend more

How can business use exchange rates to their advantage in conducting business globally?
Demand of goods increase
- People from other countries will import petroleum and gas from Venezuela
- E.g US imported 39.8% of gas and petroleum from Venezuela
 
Link : http://www.usnews.com/opinion/articles/2014/04/10/venezuela-addresses-inflation-with-new-exchange-rate-system
]]> 2016-12-15 04:08:07 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143763478 KEYNA MAIL https://padlet.com/iambelillypad/eu3o862dcra0/wish/143765099 Exchange Rates and International Trade

Link: http://www.dailysabah.com/economy/2016/12/09/turkey-china-realize-first-currency-swap-transaction-in-a-move-to-use-national-currency-in-foreign-trade                                            
    This article is about the first currency exchange transaction between Turkish and Chinese Central Bank on November 30, 2016. President of Turkey, Erdogan gain support from his people for this agenda. They are not using the Dollar anymore as a currency exchange for any payments between Turkey and China, whereby all payments will be realized in Turkish lira. 

    The currency exchange agreement aim is to ensure their current account balance between Turkey and China. Turkish Central Bank Governor, Murat Centikaya claimed that the use of the lira in international transactions has increased. The challenges that they might encounter in global market are the cost of foreign trade transaction and sensitivity towards reserve currencies. Since, China is the biggest supplier for Turkey, thus dollarization happened once they agreed to use their national currency as an exchange. Finally, when they had fixed contract, it could lessen the effect of temporary fluctuation in the exchange rate.

]]> 2016-12-15 04:42:26 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143765099 TRACY JUTA https://padlet.com/iambelillypad/eu3o862dcra0/wish/143766494 http://www.euroinvestor.com/ei-news/2012/07/17/how-exchange-rate-fluctuations-affect-companies/19796
How exchange rates fluctuations affect companies.
This items is about how the exchange rates fluctuations affect companies and what they will do to protect themselves and company. Exchange rates is a price of export and import goods there are two of them a market exchange rate and a price parity exchange rate. Economists will compare the two rates to identify whether it is over or undervalued for instance if say $1 = 0.77 euro, now you want to import some goods from US which cost = $10 in the next day you heard that now the exchange rate is $1 = 0.80 euro .Now, to import that amount of goods you have to pay extra 0.03 euro per dollar. This is how the international trade got affected. Import cost increased when the domestic currency devalued.
There are 2 types of exchange rate which is Floating Exchange Rate and is Fixed Exchange Rate System.
3. What are the challenges that currency exchange rates pose to doing business in a global market?
• The challenges that currency exchange rates pose to doing business in a global market is firstly Companies with overseas branches, or those that traded internationally, are at the mercy of global currency fluctuations. As is the case with private investments, changes in conversion rates can wipe out profits or increase gains.
4.  How can business use exchange rates to their advantage in conducting business globally?
• Increase in exports and decrease in quantity of imports. Therefore, domestic firms will benefit from increased sales. This may lead to job creation and lower unemployment, especially in exporting industries.

]]> 2016-12-15 05:18:18 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143766494 Dolores Gregory https://padlet.com/iambelillypad/eu3o862dcra0/wish/143822209 Based on the article, the chinas central bank weakening its currency because its floated within the narrow band. Most people assume it floated upward. The central bank seems to keen the door to capital capital a little wider as long as foreigner do not try to barge their way in.
 Http://www.economist.com/news/finance-and-economics/21597965-why-chinas-central-bank-weakening-its-currency-one-way-no-more
1)what are the challenges that currency exchange rates pose to doing business in a global market?
-political issue
-two way fluctuation
-carry trade
-purchase of foreign exchange

2)How can business use exchange business globally?
-attract more foreign direct investment
-benefiting from higher Chinese interest rates and the yuan appreciation
-carry traders design
-lend each other]]> 2016-12-15 13:15:23 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/143822209 hi my pooper poop poop pooppoop https://padlet.com/iambelillypad/eu3o862dcra0/wish/431863446 2020-01-15 14:42:01 UTC https://padlet.com/iambelillypad/eu3o862dcra0/wish/431863446