International transactioncurrency in the post-world war ii

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How did the U.S. dollar become the international transactioncurrency in the post-World War II era?

 1. Which international currency or currencies are likely to assume increasingly a role as the international transaction currency in international trade? Why?

 2. Why is a fixed exchange rate regime that promotes the stability of the currency value inherently unstable?

3. Discuss the primary roles of the International Monetary

Fund and World Bank.

4. What is the managed float?

5. How does a currency bloc help a multinational company's global operations?

6. Using the purchasing power parity argument, estimate whether the U.S. dollar is overvalued or undervalued relative to the German deutsche mark, the French franc, and the Japanese yen.

7. Describe how knowledge of the spot and forward exchange rate market helps international marketers.

8. Why is the exchange rate pass-through usually less than perfect (i.e., less than 100 percent)?

9. Define the four types of balance of payments measures.

10. Describe the sequence of events that took place to cause the Asian financial crisis in the late 1990s.

11. What are the advantages and disadvantages of having euro as a common currency in the European Union?

Reference no: EM132764030

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