Write a paper about the foreign exchange market that addresses the following:
- Discuss the functions of the foreign exchange markets. Identify and appraise the primary institutions and organizations comprising the foreign exchange market. Explain the roles that each of these primary institutions and organizations.
- Describe how foreign exchange rates are quoted. Define the absolute and relative purchasing power parity theories. Analyze the relationship between interest rates and exchange rates. Describe why these theories and relationships are important for the multinational business manager.
- Evaluate what you feel to be the five most important impacts on exchange rates for forecasting the direction of exchange rates. Explain each of these impacts and defend your choices. Describe why these forecasts are important to a multinational business manager.
- Review the paper by Verschoor and Muller (2007). Describe the research question they investigate and analyze the methods use to assess the issue. Describe the primary conclusions of the research.
Support your paper with at least five (5) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Length: 5-7 pages (not including title and reference pages).