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Why is it necessary to exchange currencies for nations to trade?
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What is Currency exchange market?
Its a market that is used to exchange or trade currencies of different countries.
How would you describe the exchange of currencies?
Exchange of currencies is the exchange rate of the currency of one country to another. For instance exchanging USD to AUD or pesos. These rates allow people to trade money when traveling to different continents.
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
Why is a system of currency exchange necessary for international trade?
Because if you produce goods in Japan then you use the yen as your currency (that is what you pay your taxes and workforce in). However you may sell your goods in the US and Europe. The people in the US will purchase them in dollars and in Europe in euros and you therefore need to convert these currencies into yen so that you can pay your local debts.\
Why are exchange rates necessary?
Exchange rates determine the amount of imports and exports for a country. Depending on a naitons currency compared with a foriegn currency, countries may or may not want to trade with that nation.
What is Currency exchange market?
Its a market that is used to exchange or trade currencies of different countries.
Why do nations need a system of currency exchange rate?
Nations need a system of currency exchange rate in order to be able to tell the value of their currencies. The exchange rate is set again the price of gold in order to have some uniformity across all nations.
Why do businesses exchange currencies?
For trade and also for balance sheet (capital & funding).
How would you describe the exchange of currencies?
Exchange of currencies is the exchange rate of the currency of one country to another. For instance exchanging USD to AUD or pesos. These rates allow people to trade money when traveling to different continents.
How does foreign exchange risk cause loss and collapse of multinational companies?
They trade in various currencies/ if the currencies fluctuate they may lose lots of money because they calculate on an exchange rate and it varies! Remember - they deal in millions at a time
Trade weighted index?
a representation of the average exchange rate between one country and a variety of foreign currencies according to their relative importance to their trade.
What is forex trading, and how is it used?
Forex trading deals with the world currencies. Forex actually is short for Foreign Exchange. Countries will trade their currencies to gamble on the current exchange rates. Since the rates change daily and a currency changes in relation to economic conditions and emergencies.
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
What is trade foreign currencies?
Trading foreign currencies refers to the buying and selling of various currencies at a profit.
What was name of the euro in the past?
The Euro is a shortened version of European Currency Unit. The ECU was agreed by the European Monetary System (EMS) IN 1978 to stabilize exchange rates and thus encourage intra-EU trade. It started off as a parallel currency for all participating national currencies and the Exchange Rate Mechanism which fixed the exchange rates between currencies
Why does Mexico have to exchange currency to trade?
International trade is done by paying in US dollars, or any other "strong currency", such as Euros or British Pounds. Hence to pay for imports or being paid for exports, Mexico and its trade partners need to purchase these currencies.
What exactly does the term forex trading refer to?
Forex trading is "foreign exchange trading". That is, it deals with trading world currencies. http://www.forextrading.com/ is a website that could offer help to someone looking to trade foreign currencies; say the Japanese yen for US dollars.
