Скачать презентацию International Finance Frederick University 2012 The foreign Скачать презентацию International Finance Frederick University 2012 The foreign

115ca8f8361afadd789494b0c0ef38a1.ppt

  • Количество слайдов: 11

International Finance Frederick University 2012 International Finance Frederick University 2012

The foreign exchange market n n n The foreign exchange market – worldwide institutions The foreign exchange market n n n The foreign exchange market – worldwide institutions that exist for the purpose of exchanging the currencies of different countries Spot markets – the markets in which currencies are traded for immediate delivery Forward markets – the markets in which foreign exchange deliveries are to be made at some specified future date

The foreign exchange market n n n Arbitrage – the process by which individuals The foreign exchange market n n n Arbitrage – the process by which individuals seek to make a profit by taking advantage of discrepancies among prices prevailing simultaneously in different markets Speculation – a way to make a profit by taking a deliberately risky position Hedging – a way to avoid foreign exchange risk

Pof $ In € The foreign exchange market A The demand foreign currency = Pof $ In € The foreign exchange market A The demand foreign currency = the supply of domestic currency P of € In $ Ε>1 C B E=1 B E<1 C A Q of $ The demand for $ The supply of € Q of €

Injections imports М exports Х Leakages Government purchases G Expenditures on final goods and Injections imports М exports Х Leakages Government purchases G Expenditures on final goods and services Investment І Macroeconomic Equilibrium I+G+X= S+T+M (X - M) = (T - G) + (S - I) (I – S) = (T – G) + (M - X) taxes Т AE Final goods and services savings S HOUSEHOLDS FIRMS Production factors Primary Income The Circular Flow

Balance of payments n n n BOP – a set of accounts recording all Balance of payments n n n BOP – a set of accounts recording all the transactions of the residents of a nation with the residents of all other nations during a particular period of time Credit transactions – reflect the inflow of foreign currency Debit transactions – reflect the outflow of currency

The three basic subaccounts of the BOP n n n the current account, the The three basic subaccounts of the BOP n n n the current account, the capital account, and the official settlements account.

The current account balance n n n n Credit Exports of goods Inflows from The current account balance n n n n Credit Exports of goods Inflows from international travel and transportation Exports of other services Profits from foreign investment Workers remittances and pensions from abroad Inflows of military purposes Inflows for diplomatic purposes Gifts inflows n n n n Debit Imports of goods Outflows for international travel and transportation Imports of other services Repatriated profits of foreign investors Outflows of workers remittances and pensions Outflows for military purposes Outflows for diplomatic purposes Gifts outflows

The current account balance Merchandise trade balance n. Goods and services balance n. Goods, The current account balance Merchandise trade balance n. Goods and services balance n. Goods, services and income balance n. Current account balance n

The capital account balance (financial account balance) n n Private investment Other nonofficial investment The capital account balance (financial account balance) n n Private investment Other nonofficial investment flows

Balance of payments Current account n Capital account n The official settlements account (changes Balance of payments Current account n Capital account n The official settlements account (changes in holdings of official international reserves) n