by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Appreciating and Depreciating Currency?When the exchange rate for a currency rises, so that the currency exchanges for more of other currencies, we refer to it as appreciating or “strengthening.” Related Topics What Does it Mean to Dollarize Foreign Exchange...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Foreign Exchange Contract?A foreign exchange contract is a legal arrangement in which the parties agree to transfer between them a certain amount of foreign exchange at a predetermined rate of exchange, and as of a predetermined date. These contracts are...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Currency Hedge? Currency hedging is similar to insurance, which you buy to protect yourself from an unforeseen event. Currency hedging is an attempt to reduce the effects of currency fluctuations on investment performance. To hedge an investment, investment...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Foreign Exchange Market?We call the market in which people or firms use one currency to purchase another currency the foreign exchange market. Often called FOREX. In reality, the exchange rate is a price—the price of one currency expressed in terms of units...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Race to the Bottom? The race to the bottom scenario of global environmental degradation runs like this. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Free Trade Agreement? Free Trade Agreements are direct agreements between nations that allow for the unrestricted transfer, sale, and distribution of goods and services between the nations. The Free Trade Agreement generally grants special rights to the...
