Reference no: EM133152537

As you work and travel around the globe you will find the need to convert currency to local money. The only time I ever felt like a millionaire was when traveling in Italy when I bought a sweater. The price of the sweater was roughly $36 dollars but at the time, Italy used lire and the valuation was some outrageous figure like 12,734 lire to the dollar. Now, of course they use the Euro which aims to offer uniformity of currency use. You will still find plenty of businesses that prefer to take dollars to Euros even though today the Euro is stronger than the dollar (although weaker than in very recent past). I'm sure many of you followed the decline in Euro value this last summer as the EU struggled with debt in several member countries (Greece, Spain, Portugal, Italy to name a few). Your assignment this week is to pick an item you would purchase in the US, then go to conversion sites and convert the dollar value of the purchase to one currency found in Europe, one currency found in Asia and one currency found in South or Central America. Explain what factors account for differing currency valuations.