Chapter 17.3 Notes Financing & Trade Deficit. I.When countries trade, why was it hard to pay each other? A. Because each country has its own currency/

Slides:

Advertisements

Similar presentations

The Impact of Foreign Exchange Rates By Paul D. Mixon.

Advertisements

International Trade Peter Riordan – Penn High School

Highers Economics The sterling exchange rate Does a fall in the pound matter? The sterling exchange rate Does a fall in the pound matter?

1 Chapter 9 How Exchange Rates are Determined ©2000 South-Western College Publishing.

Chapter 19. The Foreign Exchange Market Exchange rates Long run factors Short run factors Exchange rates Long run factors Short run factors.

Chapter 16 International Finance and Exchange Rates Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Chapter 33: Exchange Rates and the Balance of Payments

EXCHANGE RATES.

International Trade Mechanics of Foreign Exchange (FOREX)

Unit International Payment Flows Understand the components of International Currency Exchange.

 Exchange Rates. Exchange rates  The exchange rate refers to the rate at which national currencies can be exchanged for each other in the foreign exchange.

Exchange Rates, The Balance of Payments, and Trade Deficits Chapter 38.

Lesson 14 – Money around the world

Exchange Rates.

Unit 3 Lesson 1 Exchange Rates. 1)Grab your clicker. 2) Pick up a “Mall of the World” menu… …and pick out three things you want to eat.

Exchange Rates and Agricultural Trade Chapter 17.

 Only 9 countries have iPhone 6’s available.  The US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK.  One unit costs.

EXCHANGE RATES, THE BALANCE OF PAYMENTS, AND TRADE DEFICITS 38 C H A P T E R.

10.1: International Exchange.  Money: a medium of exchange used by a society  Money can store value and act as a unit for accounting.  Over time money.

1 Chapter 9 part 2 International Finance These slides supplement the textbook, but should not replace reading the textbook.

March 25/26 Announcements Due: 4/2/15

Globalization EQ: How does globalization encourage economic interdependence?

Exchange Rates What is an exchange rate? What types of rates exist, and how are they different? How would you graph supply and demand for a currency? Why.

Practice 1. U.S. income increase relative to other countries. Does the balance of trade move toward a deficit or a surplus? -U.S. citizens have more disposable.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.

Foreign Exchange Rates Flexible Exchange Rates Uses demand and supply to determine the value of one nation’s currency compared to another nation’s Equilibrium.

MECHANICS OF FOREIGN EXCHANGE (FOREX). FOREIGN EXCHANGE (FOREX) The buying and selling of currency Ex. In order to purchase souvenirs in France, it is.

Macroeconomics – Unit 6. An open economy (as opposed to a _________ economy) interacts with the rest of the world through... Goods market Financial markets.

International Trade. A. Closed economy- does not engage in trade or other economic interaction with other countries. Very rare. Open economy- free and.

Unit 5-2 Foreign Exchange (aka. FOREX)

Today’s Schedule – 12/19 Present International Trade Posters Exchange Rates PPT Homework – Bring calculator tomorrow – Read 19.1 – Study Ch. 18 Quiz- Taking.

Exchange Rates Bill Reese International Finance 1.

1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern CHAPTER International Finance Macro.

Measuring Trade. Exchange Rates Exchange rate: the value of one currency in terms on another currency. Exchange rate: the value of one currency in terms.

Foreign Exchange (FOREX) The buying and selling of currency – Ex. In order to purchase souvenirs in France, it is first necessary for Americans to sell.

Personal Finance.  A. Personal Financial Planning is arranging to spend, save and invest your money wisely, so you are able to live comfortably, have.

Trading With Other Nations

International Finance FINA 5331 Lecture 2: Foreign Currency Markets Continued: Introduction to Balance of Payments Read: Chapters 3&5 Aaron Smallwood.

International Trade Mechanics of Foreign Exchange (FOREX)

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 18 International Finance and Exchange Rates.

Global trade doesn’t just influence business, it also affects all the countries and people of the world.

Starter Questions Q1. Convert to 12 hr clock

UNIT 2: GOVERNMENT FINANCE. FOREIGN EXCHANGE 2 decisions to make… 1) BUY or SELL? BE SURE YOU USE THE CORRECT COLUMN IN THE CHART! Is the bank SELLING.

Accounting 6570 Chapter 6 –Foreign Currency Transactions and Hedging Foreign Exchange Risk.

International Business Basics

Global Trade For countries to grade goods and services, they must also trade their currencies. The process of converting one currency to another is known.

Today’s Schedule – 12/13 2 International Trade Presentations Exchange Rates PPT Activity: Exchanging Classwork for Goods Homework – Read 19.1 – Study Ch.

International Finance FINA 5331 Lecture 2: Foreign Currency Markets Continued: Introduction to Balance of Payments Read: Chapters 3&5 Aaron Smallwood.

FOREIGN EXCHANGE (FOREX) STANDARDS: SSEIN3A-D GOALS: 1) I WILL BE ABLE TO DEFINE AND COMPUTE EXCHANGE RATES. 2) I WILL BE ABLE TO LOCATE & INTERPRET FOREX.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies Copyright ACDC Leadership 2015.

Disequilibrium Due to Government Regulation

Chapter 11 An Introduction to International Finance.

MONEY This lesson will teach how to use exchange rates.

Chapter 2 International Monetary System Management 3460 Institutions and Practices in International Finance Fall 2003 Greg Flanagan.

1 Objective – Students will be able to answer questions regarding foreign exchange. SECTION 1 Chapter 38- Foreign Exchange © 2001 by Prentice Hall, Inc.

International Business Basics 3-1. Trading Among Nations Domestic Business International Business (Foreign or world trade) Making, buying, and selling.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies Copyright ACDC Leadership 2015.

EXCHANGE RATE The price at which one currency can be exchanged/traded for another.

International Trade. I. Trade Deficits and Surpluses A. A Trade Surplus exists when a nation exports more goods and services than it imports A. A Trade.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.

INTERNATIONAL TRADE Chapter 17 Section 3 Measuring Trade.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Prices of Currencies Copyright ACDC Leadership 2015.

Trade Surplus Trade Deficit Foreign Exchange Markets.

If you could go anywhere…

International Economics

Exchange Rates.

Financing and Trade Deficits

Measuring the Value of Trade

International Trade.

Presentation transcript:

Chapter 17.3 Notes Financing & Trade Deficit

I.When countries trade, why was it hard to pay each other? A. Because each country has its own currency/ $ B. Foreign Exchange Rate- created to convert different types of money.

1 foreign currency 1 dollar in Country in dollars foreign currency Mexico.09 cents pesos Euro 1.36 dollars.74 euros Japan dollars yen A. How much is 1 Mexican Peso worth in the U.S.? B. I have 10 Japan. Yen. How much in U.S. dollars do I have? C. I have 1 Euro. I want to buy U.S. gum costing.95 cents. Do I have enough money?

II. 2 types of International Exchange Rates A. Fixed Exchange Rates- when exch. rate was set by value of money in gold. Not used today. 1. Ex. $1 = 2 ounces of gold 3 British pounds = 2 ounces of gold a) Thus, $1 = 3 B.P. B. Flexible/ Floating Exchange Rate- when exch. Rate is set by value of each others money according to the S&D of each currency

III. Trade Deficit A. Occurs when balance of payments are not equal- country A sells more stuff to country B, then Country B sells to country A

1. Ex. in 2005: China bought from U.S.=200 B U.S. bought from China= 500 B a. What is the trade deficit? B. Why are trade deficits bad? 1. Money leaves the country 2. Jobs are lost 3. Exchange Rate goes down