What 2 points are required to emphasis foreign exchange
What 2 points are required to emphasis foreign exchange market?
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Two points require emphasis with respect to these markets.
1. Real world foreign exchange markets are competitive, with large numbers of buyers and sellers dealing with a standardized product, the currency of some country.
2. Exchange rates link of one country’s domestic prices with all foreign prices. They allow you to interpret the cost of foreign products into dollars.
For example, if the dollar/yen exchange rate is 1 cent/per yen, a Sony T.V. set priced at ¥20,000 will cost an American $200 = (20,000 x .01).
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