Here is a term paper on ‘Balance of Payments’. Find paragraphs, long and short term papers on ‘Balance of Payments’ especially written for school and college students. Term Paper # 1. Introduction to the Balance of Payments: Balance of Payments or BOP is a historical summary of a country's foreign exchange inflows and outflows that occurred during a particular time [...]
The following points highlight the three main types of foreign exchange exposure. The types are: 1. Transaction Exposure 2. Translation Exposure 3. Operating Exposure. Type # 1. Transaction Exposure: It refers to the sensitivity of the domestic currency value of foreign currency-denominated transactions arising from credit purchases and credit sales. Whenever a company makes credit purchases or credit sales invoiced [...]
The following points highlight the top four theories of exchange rates. The theories are: 1. Purchasing Power Parity Theory (PPP) 2. Interest Rate Parity Theory (IRP) 3. International Fisher Effect (IFE) Theory 4. Unbiased Forward Rate Theory (UFR). 1. Purchasing Power Parity Theory (PPP): The PPP theory applies to commodities. There are two variants of the PPP: the absolute PPP [...]