Depreciation

The currency of India has been falling much recently against the dollar, as the risk adverse global investors start getting worried about the deficits, as efforts are being made by the central bank to stem the slide of the currency. According to Fact Set data, the rupee hit 54.44 against the dollar, in December, 2011. According to the analyst, it is expected that the rupee may continue to weaken further, as Eurozone jitters dovetail with the raising worries on the slow growth rate, fiscal deficits and the current account.

External stability – stable exchange rate, a sustainable level of foreign debt and the current account deficit (CAD) 

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during

Before we look at these forces, we should sketch out how exchange rate movements affect a nation 's trading relationships with other nations. A higher currency makes a country 's exports more expensive and imports cheaper in foreign markets; a lower currency makes a country 's exports cheaper and its imports more expensive in foreign markets. A higher exchange rate can be expected to lower the country 's balance of trade, while a lower exchange rate would increase it.

The type of depreciation method the Target Corporation uses is a straight-line method. Property and equipment is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. “Target amortizes leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably assured at the date the leasehold improvements are acquired” (Stock Analysis, n.d.).

The most obvious national influence on the Canadian dollar is the well being of the Canadian economy. A strong economy makes the country interesting for investors because it provides a strong economic return. This increases the demand for Canadian dollars and raises the exchange rate. Furthermore, a relatively small supply of investment returns decreases the demand for Canadian dollars economy. It is important to note however that economic strength is a relative concept. A prolonged period of economic growth in Canada will result in not increasing the exchange rate relative to the US dollar. This depends on the country experiencing growth, equal or higher

India’s economy is one that appears to be on the brink of a major recession. Their central bank has made bad choices over the last number of years. This has lead to a low growth within the country and a high inflation rate. They changed their political leadership to someone who was more open to change and reform, but this has not come about. India reformed its tax system, which they believed would be the key to success in the country. This in fact caused the opposite. The economy slowed down sharply. They banned the sale of cows in India due to religions reason and this stopped the growth of agriculture as this was a huge export for the country. India has about 12 million new young people enter its job market each year and finding jobs for this vast quality of people is a hinderance for the country and yet another driving factor for lower growth. India expects the initial impact of their tax reform to be over and now they will see a stabilization of their economy. It is believed their economy will now grow in small increments due to this stabilization.

These two factors, the devaluation of the exchange rate in conjunction with the impending default of

One important determinant of a country 's exchange rate in the long term is whether it has a higher or lower inflation rate than its trading partners. The theory of purchasing power parity (PPP) suggests that the exchange rate between two countries will adjust to ensure that purchasing power is equalised in both countries. If a country 's inflation rate is persistently higher than that its trading partners, its trade-weighted exchange rate will tend to depreciate to prevent a progressive loss of competitiveness over time. In addition, political events can also impact the exchange rate, as seen with the ‘Malcolm Turnbull effect’ which lifted the Australian dollar. The Australian dollar, at US70.68c broke US71c in overnight trade after Turnbull discussed the need for economic reforms to counteract "challenges" facing the slowing local economy. Shortly after Mr Turnbull was confirmed as the victor against Prime Minister Tony Abbott, the dollar additionally rose one-third of a cent.

(Market line, 2015) This risk is mainly caused by the relative movements of various currencies such as the US dollar, the Euro, the South African Rand, and the Indian Rupee. (Market line, 2015) In specie, as of December 2014 the currency exchange rate of Indian rupee was INR63.72 per $1, but appreciate to INR61.74 per $1in February 2015 and subsequently depreciated to INR66.1per $1in November 2015. (X-rates, 2015) A strong US dollar compare with a weak Indian rupee will cause an unfavourable effect on Apollo cost of borrowing. (Market line, 2015)As such, a rising financial expenses will lead to a huge impact on operations of company. (Market line,

This case study is discussed from Paperco, Inc. point of view of whether they should avail the tax benefits and cost savings in replacing the mechanical drying equipment.

I. The possible health benefits of music are criticized, yet they yield depreciation in negative emotions, exemplify an increase in physical stimulus, and ultimately instills exponential development.

My compensation is not contingent upon the reporting of a predetermined true cash value or direction in true cash value

As long as the deficit is in proportion to GDP or Gross Domestic Product, the sum of a country’s goods and services, there is no significant fiscal risk to the economy. However there is a counter-argument that government deficits do matter. The argument is that if interest rates were to go up even a quarter point then that would lead to the need to take out even more debt to pay off previous interest payments. This would lead to the need to decide whether to decrease current spending on other programs such as healthcare or infrastructure to compensate for the new interest payments, or to maintain current spending and simply borrow more debt without attempting to curtail spending.Following the first would hurt economic growth and increase inequality, but following the latter would lead to the debt climbing higher at an increasingly fast rate that would risk causing massive inflation. Both sides make valid points.

Current Account Deficit. A rise in the ratio of the current account deficit to GDP is generally associated with large external capital inflows that are intermediated by the domestic financial system and could facilitate asset price and credit booms. A large external current account deficit could signal vulnerability to a currency crisis with negative implications for the liquidity of the financial system, especially if the deficit is financed by short-term portfolio capital inflows. Financial crises that have