Pegging against Another Currency

Pegging against Another Currency A final key aspect of the current exchange rate system is that some developing countries have attempted to keep their exchange rates fixed against the dollar or another major currency.   A fixed exchange rate makes business planning much easier. With a fixed exchange rate, firms that borrow from foreign banks… Continue reading Pegging against Another Currency

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Crisis and Recover in South Korea

Crisis and Recover in South Korea   Making the Connection Despite its difficult beginnings, by the 1960s, the South Korean economy was growing rapidly, and considered one of the newly industrializing countries. Unlike other East Asian countries that made only slow progress in recovering from exchange rate crises, South Korea bounced back rapidly. Your Turn:… Continue reading Crisis and Recover in South Korea

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The Distribution of Foreign Purchases

The Distribution of Foreign Purchases of Canadian Stocks and Bonds by Country, 2011 Investors in the United States accounted for 60 percent of all foreign purchases of Canadian stocks and bonds, while investors in the United Kingdom accounted for 16 percent, and investors in Japan accounted for 7 percent. ‹#› of 37 Copyright © 2015… Continue reading The Distribution of Foreign Purchases

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Paper on The Bretton Woods System

The Bretton Woods System   In 1947, the United States and most other major countries, apart from the Soviet Union, began participating in the General Agreement on Tariffs and Trade (GATT), under which they worked to reduce trade barriers.   The GATT was very successful in reducing tariffs. U.S. tariffs dropped from an average rate… Continue reading Paper on The Bretton Woods System

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