In this paper, provide a descriptive title or heading for your paper by focusing on topics or countries that interest you (such as “The Volatile Exchange Market in Country X”), and then discuss/explain the following concepts:
- Discuss and explain the functions of the foreign exchange market.
- Discuss spot exchange rates and their overall importance in the market.
- What is forward exchange rate and what role does it play in insuring against foreign exchange risk?
- Discuss at least one theory explaining how currency exchange rates are determined and their relative merits.
- Discuss and evaluate the merits of different approaches toward exchange rate forecasting.
- Discuss the differences between translation, transaction, and economic exposure and what managers can do to manage each type of exposure.
Your paper should be four to five double-spaced pages in APA style. Thoroughly discuss the topics mentioned and, when possible, provide specific examples or recommendations, and cite all of your sources.