Dollar Baby

Dollarization is the replacement of a countries domestic currency with that of a foreign currency. Dollarization has occurred in several countries including, but not limited to, Panama, El Salvador, and Ecuador. For countries with volatile currencies, dollarization offers them the ability to stabilize their economy. While dollarization has its pros, it is not without its cons, and for Ecuador, this is no exception. In my initial discussion, I believed that dollarization was a positive move for…

The Forecasting for the June 15th financial instruments of the S&P 500, 10 year T-Notes (yield), the gold price, the oil (WTI), the unemployment rate, and the Euro. My reasoning for these instruments was a mix between guessing and little economic reasoning. Out of the 6 financial instruments I was closest to 10 year T-Notes (yield), and the oil (WTI). While the other four instruments I was either in the right direction or the market went in the opposite of what I predicted. On May 18th the S&P…

2.1 Introduction In this chapter, previous literature concerns with the determinants of foreign currency hedging will be discussed and assessed. Theories for the determinants of foreign currency hedging can be evaluated from two aspects: the level of foreign exchange exposure and how firm’s value will be affected; what kinds of characteristics for the firm influence its decisions for hedging. I will discuss the determinants of foreign currency hedging from this two points of view in the…

“In God We Trust” is the official motto of The Unites States. It was adopted in 1956 as an alternative to the US unofficial motto “E Pluribus Unum” which is the Latin for “Out of many, one”. The motto was later adopted by the US coins and paper money. Some people argue that the motto violates the first amendment of the Unites States constitution and it is oppressive to atheists and people of different religions. However, the motto is part of America history, in fact, most of the American…

products followed distantly at 8% and 1% respectively. The survey results indicated that the plastic resin trade in Malaysia takes place in four key currencies. 76 respondents, which comprised 84.4% of all the respondents, indicated the United States Dollar (USD) as the current transaction currency with plastic resin suppliers. 12.2% of the respondents identified the local currency, Malaysia Ringgit (RM) as the current transaction currency among plastic resin suppliers. Two respondents…

How would we lynch or get rid of Jesus Christ in today’s world? We would get rid of stuff related to him. People use money everyday. Money plays a large role in almost every American’s life. Everyone thinks that people have to have it to live. American paper money contains the religious phrase “In God We Trust”. We could attempt to remove religious phrases from American money by getting rid of Christ. These phrases should not be removed from our money. Although some religious phrases offend some…

cut unnecessary spending in order the fiscal situation to absorb the blow to the monetary system (Friedman 1994). Israel managed to successfully peg its currency mainly because Israel devalued its currency before the peg came into effect, the U.S. dollar peaked and thus while the peg was in place it depreciated allowing Israeli exports to increase because those goods were cheaper compared to American goods (Friedman 1994). However, the peg in Israel did not last long and it ended up removing it…

tourism itself had contributed $2 trillion USD (United States Dollar) to the worlds GDP (Gross domestic product) according to the world travel and tourism council and along within that Adventure tourism had contributed $89 billion USD internationally in 2010 and contained to increase by six precent by 2013 (Salla, 2014). And within New Zealand alone the travel and tourism industry was worth around $23.4 billion NZD (New Zealand Dollar) in 2010. Now the tourism industry is New Zealand’s biggest…

Brexit’s Impact on the Economy Overview Just a few months ago, news broke that Britain had decided to leave the European Union. Britain’s decision is now known as “Brexit”. There were many theories as to what was going to happen to the economy from Britain leaving the European Union. Now that a few months have passed, we can take a look at the overall outcome of the situation. We can also make guesses as to what will happen in the future. Britain leaving the European Union has had many effects…

Doing business at home is not the same as doing business in foreign countries. There are different elements which should be understand by a manager who needs to conduct a business on international level. Some of them are the monetary system on the international level, the global market of capital and the strategies to develop in international business. During this fifth unity, I was equipped by these elements and improved my knowledge about how I can face an international business…