Managing in a global economy by john marthinsen babson MBA chapter 13

Exchange Rates: Why Do They Change?... Inflation Rates, and Real Exchange Rates... Dollar Relative to a Broad Index of Major U.S.. Trading Partners Source: Federal Reserve Board, Foreign

Exchange Rates: Why Do They Change?

Inflation Rates, and Real Exchange Rates

the U.S Dollar Relative to a Broad Index of Major U.S

Trading Partners

Source: Federal Reserve Board, Foreign Exchange Rates, http://www.federalreserve.gov/releases/h10/

Summary (accessed September 25, 2006).

the U.S Dollar Relative to an Index of Major Foreign

Currencies

Source: Federal Reserve Board Foreign Exchange Rates, http://www.federalreserve.gov/releases/h10/

Summary (accessed September 25, 2006).

Exchange

Dollar Supply

Dollar Demand

United States

Taxes, or Effects of Relatively Unfavorable Mexican Investment Return Expectations

Appreciation of the Peso

Increase in the Peso’s Value

Peso’s Value

Market Intervention to Raise the Value of the Peso

Exchange Rate

Regimes*

Source: International Monetary Fund, Classification of Exchange Rate Arrangements and Monetary Policy Frameworks,

De Facto Exchange Rate Arrangements and Anchors of Monetary Policy as of December 31, 2005,

http://www.imf.org/external/np/mfd/er/2005/eng/1205.htm#table (accessed September 26, 2006).