Assignment:
Currency Exchange Rates
Review the below chapters:
Creating an Environment for Growth and Prosperity
International Finance and the Foreign Exchange Market
The Growth of the U.S. Trade Sector
Institutions, Policies, & Cross-Country Differences in Income and Growth
Create a 2-page paper describing how currency exchange rates are determined in markets. Exemplify how it occurs by showing it in graphical form. How does a country's balance of trade coincide with its exchange rate with another country?