Business World and Exchange Rate Problems

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Today’s business world is becoming more difficult and complex because of the important numbers of factors to take into accounts. Then, with the globalisation, more and more firms tends to go global. This trend means that the risks are increasing, and have to be monitoring in order to run well. All the transaction are made with money like investment...
But, the main problem is that almost all countries have currencies different from each others. It means that their values are not the same, and they change every time. So, firms have to take into account this problem, because it could no be easy at all.

The aim of this essay is to understand the problem of exchange rate. In order to answer to this problematic, various topics will be
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Evolution of Dollar.
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It’s now the Dollar which is studied. On this first graph showing the exchange rate movement between Euro and Dollar, it is clear that from November to June the increase was very important, and decreases very fast too until the end of the year. The lowest level is reached in november/december 2009 and the highest in June 2010.

[pic] On this graph, Dollar is compared with the GBP. From the beginning of the year until May, the curves is increasing and reaches its highest point in May/June. After that, it decreases until the end of the year, and looks like to become stable. To make trade in UK, the most profitable period was in May/June for American’s investors.
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Instead of the two previous graphs, which were first increasing and then decreasing. This curve is only decreasing all over the year. Its highest point is reached in May 2010, and the lowest in October 2010. This year wasn’t good for American investors who wanted to make to make trade in Japan.

Evolution of Japanese Yen.
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Let’s continue with the Yen. Here is the movement between Euro and Yen, from October to May, the curve is increasing with a very fast growth at the end of April/beginning of May. Then, generally, the curve stays stable. The lowest point is in October 2009 and the highest is in September 2010. For Japanese buyers who want to order European product, this year should have been profitable, because if they have
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