What is foreign trade balance?

Q: A) What is the geographical location of the foreign exchange market? B) What are the two main types…

A: Foreign exchange market is the market for trading in currencies. It is the largest and the most…

Q: why do exporters and importers use bill of exchange?

A: A bill of exchange is a written order that binds one party to pay another party a predetermined sum…

Q: How is a country’s economic well-being enhanced through free international trade in goods and…

A: We can understand how a country’s economic well being is enhanced through free international trade…

Q: What is foreign exchange FX risk?

A: Foreign exchange risk: It alludes to the misfortunes, due to currency or money changes, that a…

Q: Describe the market for foreign investment.

A: Foreign investment is when a domestic investor decides to purchase ownership of an asset in a…

Q: What are forward contracts? How can they beused to manage foreign exchange risk?

A: Risk refers to the uncertainty regarding the implications of any activity.

Q: What determines a country’s net international investment position

A: The Net International Investment Position is basically the quantity after casting off the outside…

Q: What is floating exchange rates?

A: Floating exchange rate: It is a scale is where the money cost of a country is set by the forex…

Q: Define the term exchange rate?

A: There are two types of exchange rates: floating and fixed. The floating exchange rate is determined…

Q: What is fixed exchange rate system?

A: Fixed exchange rate system It is a standard forced by an administration or national bank that…

Q: How does an investor earn in the foreign exchange market?

A: The foreign exchange market comes into exitance where currencies of different countries can be…

Q: Give full definition of the market for foreign exchange.

A: The cross-border flow of money gives rise to foreign exchange. Foreign exchange refers to foreign…

Q: Define Foreign exchange risk.

A: The term foreign exchange risk is defined as, the risk of an ominous variation in the settlement…

Q: What are pegged exchange rates?

A: Pegged exchange rate: It is otherwise called a fixed exchange rate, which is a kind of conversion…

Q: Define spot rate (foreign exchange)

A: Spot rate (foreign exchange):  Spot rate is the present exchange rate at which a pair of currency…

Q: Who are the players in the foreign exchange market?

A: The currency market, often known as the foreign exchange market, is a global decentralized or…

Q: Define domestic currency

A: The domestic currency is a currency that is the local currency for every country. Every Trade…

Q: How can fluctuations in exchange rates impact Zara especially in dealing with international…

A: Answer:-  Exchange rate definition:- Exchange rate is that rate at which one country's currency can…

Q: In your view which exchange rate regime is beneficial for the countries and why?

A: Exchange rate regime refers to the method used by a country to manage its currency in respect to…

Q: What are some of the transactions or activities that results in the demand of foreign currency

A: In an economy or in a country there are different economic and commercial transactions that lead to…

Q: What is foreign currency?

A: In terms of finance, foreign currency is a familiar term in FOREX (Foreign Exchange) transactions.

Q: WHAT ARE THE FEATURES AND TYPES OF FOREIGN TRADE?

A: Foreign trade are the trade between two or more countries.there are generally two types of trade…

Q: chains of events affected the Foreign Exchange Rates long term and short term

A: Factors affecting foreign exchange rates in short term: Interest rates: depreciation or appreciation…

Q: Define Foreign currency hedge.

A: Hedge: The process through which the risk associated with a particular project, can be eliminated is…

Q: Describe direct foreign investment process?

A: Step 1 A foreign direct investment (FDI) is a financial investment made by a company or individual…

Q: What is foreign exchange rate?

A: The foreign exchange rate is the relative representation of domestic currency in terms of value of…

Q: What does the term functional currency mean? How is the functional currency determined under IFRS…

A: In today's world, a business is operated in multiple countries that uses different currencies.…

Q: Define the term direct foreign investment?

A: The company is established to make a profit and it always keeps seeking investment opportunities…

Q: EXPLAIN THE MODE OF PAYMENT IN FOREIGN CONTRACTS.

A: A foreign exchange contract is a legal arrangement in which the parties agree to exchange a defined…

Q: What is that determines the relationship between spot abd forward foreign exchange rates?

A: The exchange rate between two currencies is the number of units of one currency per unit of the…

Q: What is the importance of Foreign Exchange Market?

A: Foreign exchange markets commonly known as Forex markets are mainly concerned with purchasing and…

Regulations Of Foreign Exchange Market