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Slide 1
Outline
The Exchange Rate
The Exchange Rate (cont’d)
The Exchange Rate (cont’d)
Impact of Exchange Rate Changes on Trade
Impact of Exchange Rate Changes on Trade (cont’d)
Impact of Exchange Rate Changes on Trade (cont’d)
Slide 9
The Foreign Exchange Market
The Foreign Exchange Market (cont’d)
The Foreign Exchange Market (cont’d)
Characteristics of the Market
Functions of the Forex Market
Exchange Rate Classifications
Exchange Rate Classifications (cont’d)
Exchange Rate Classifications (cont’d)
Spot Rates and Forward Rates
Forward Exchange Transactions
Equilibrium in the Forex Market
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