M13 Chap.11 An Introduction to International Finance

来源：网络收集时间：2026-04-06

导读： Chapter 11 An Introduction to International Finance Copyright 2010 Pearson Addison-Wesley. All rights reserved. Topics to be Covered Balance of payments Exchange rates Prices and exchange rates Interest and exchange rates Other topics 11-2

Chapter 11

An Introduction to International Finance

Topics to be Covered Balance of payments Exchange rates Prices and exchange rates Interest and exchange rates Other topics

Balance of Payments (BOP) BOP—a record of a country’s economic transactions with the rest of the world.

Trade Surplus vs. Trade Deficit Trade surplus—occurs when a country’s merchandise exports exceed its imports. Trade deficit—occurs when a country’s merchandise imports exceed its exports. The U.S. has consistently experienced trade deficits, with 1975 as the last surplus year, while Japan, Germany, and Canada have had trade surpluses (refer to Figure 11.1).

FIGURE 11.1 The Trade Balance over Time

Exchange Rates Foreign Exchange Market (FEM)— the market where monies of different countries are traded. /wiki/File:Worldmap_ LandAndPolitical.jpg Exchange rate—price of one country’s money in terms of another.

Features of Foreign Exchange Market Refer to Table 11.1 FEM Trading Volume The total volume of trade in the foreign exchange market was approximately $4 trillion in 2007. The largest markets are the U.K., accounting for 34% of the world market, and the U.S. with a 17% share.

TABLE 11.1 Foreign Exchange Market Trading Volume

Features of FEM (cont.) Refer to Table 11.2 The most traded currency is the U.S. dollar, accounting for 86% of the total amount traded. The dollar is followed by the euro, the Japanese yen, and the British pound.

TABLE 11.2 Use of Currencies on One Side of the Transaction as a Percentage of Total Foreign-Exchange Market Volume

Prices and Exchange Rates Purchasing Power Parity (PPP) holds when two currencies have the same purchasing power in the two countries. Chapter 14 will analyze the prices–exchange rate relationship in more detail.

Big Mac PPP Refer to Table 11.3 Big Mac PPP If the price of a Big Mac hamburger was $1 in the U.S. and ¥100 in Japan and the ¥/$ exchange rate was 100, then the Big Mac PPP holds. PPP appears to hold more for Australia. China’s yuan is undervalued by 50% against the dollar; thus dollars will buy more in China. The reve

TABLE 11.3 Big Mac Purchasing Power Parity

Interest Rates and Exchange Rates Figure 11.2 shows that even countries with close and extensive economic ties can have independent movements in their interest rates. Interest differentials among countries may reflect expected exchange rate changes as well as risk premiums. Chapter 15 will discuss interest rates in more detail.11-14Copyright © 2010 Pearson Addison-Wesley. All rights reserved.

FIGURE 11.2 Interest Rates Across Countries

Additional Major Topics to be Covered Later Foreign exchange risk—the risk of an unexpected change in the exchange rate. International investment—portfolio investment and direct investment. International monetary systems— history of international financial systems.

Additional Topics (cont.) International banking—offshore banking and country risk analysis International macroeconomics— determination of equilibrium income, interest rates, and exchange rates in a global setting.

…… 此处隐藏：2095字，全部文档内容请下载后查看。喜欢就下载吧 ……

M13 Chap.11 An Introduction to International Finance.doc 将本文的Word文档下载到电脑，方便复制、编辑、收藏和打印

下载这篇word文档

本文链接：https://www.jiaowen.net/wenku/40475.html（转载请注明文章来源）

上一篇：基于尺度推绎法的生态脆弱区粮食作物耕作适宜性评价(摘要)
下一篇：2015-2016学年河南省南阳市高一下学期期末考试物理试题(扫描版)