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Dynamics of the foreign exchange market

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As we have been discussing throughout this course, doing business in a domestic economy only is less complicated than going global for many reasons. A big one that can seriously affect the profitability of a firm is when trading requires dealing in two or more currencies. To understand why, it is essential to study the dynamics of the foreign exchange market.

Be sure to watch the videos given in resources and review the lecture and readings to help enhance your understanding before entering into the discussions.

Let's start by discussing what triggers a need to convert currency? Give an example of how this might play out with two companies trading internationally.

Reference no: EM131234074

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