EC202 1nd Edition Lecture 34Outline of Last Lecture I. Lesson 8 concludedOutline of Current Lecture II. Foreign currencyIII. Exchange ratesIV. Trade Current Lecture-During the latter part of the 1990s, the “Asian Contagion” demonstrated international structures inadequate to prevent crises-Exchange rates collapsed-Stock Market prices collapsed-Output collapsed-Unemployment rose dramatically-Translating the value of foreign currency into domestic currency is a problem every international traveler faces-Exchange rates-The rates at which one country’s currency trades for another-Flexible exchange rates vary continually with changes in supply and demand-Exchange rates affect-Competitiveness of exports -Prices paid for imported goods-Values of financial assets in one country to asset owners of another country -Travel and tourismThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-Trade in goods, services, and assets within a nation normally involves a single currency-Trade between nations usually involves dealing in different currencies-American manufacturers want to be paid in dollars-South Korean manufacturers want to be paid in
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