StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Premium+

The Development and Prospects of the Dollar-Pound Exchange Rate - Dissertation Example

Cite this document
Summary
The dissertation "The Development and Prospects of the Dollar-Pound Exchange Rate" has a goal to identify a relationship either empirical or otherwise between the interest rates prevailing in the UK and the US and that of the prevailing average dollar-sterling exchange rates. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
The Development and Prospects of the Dollar-Pound Exchange Rate
Read Text Preview

Extract of sample "The Development and Prospects of the Dollar-Pound Exchange Rate"

Download file to see previous pages

the US had been more restrained and preferred to perfect its own brand of capitalism at home, receiving course rich inputs from multicultural contributions. The reasons for these two different brands of capitalism did not deter the two nations in forging important symbiotic economic, trade and political ties and be reckoned as one of the most effective socio-political and economic alignment of the present-day world. The two different brands of capitalism, followed by these two nations, were founded in the realities of these two nations-the UK was a small nation that had limited natural resources at its command and the USA was a vast land with a population that was not sufficient to exploit such large and rich natural resources.

Thus, while the UK went in search of territories that could be exploited for natural resources; the US established a liberal immigrant and employment policy that almost invited the rest of the world to come and contribute to the US economy. Both brands of capitalism were a resounding success if outcomes are to be seen and evaluated now. However, these outcomes and the recent emergence of new economic powers such as China, Poland, etc that are diluting these outcomes as a consequence of globalization are not the focus in this discussion.

The more important aspect is the fact that both brands of capitalism brought these two nations important trading ties with the rest of the world. The UK, while developing its protectorates, established trading ties with the protectorate and continued the trade much after it had set the protectorate free and finally the UK and the protectorate trade ties were determined by need-based comparative advantage. This had the important consequence of establishing the British pound as an international currency of trade.

On the other hand, The US became such a lucrative economic power and the land of opportunities that almost everyone wished to trade with the US. This made for establishing the US dollar as another important currency of international trade. 

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Development and Prospects of the Dollar-Pound Exchange Rate Dissertation, n.d.)
The Development and Prospects of the Dollar-Pound Exchange Rate Dissertation. https://studentshare.org/finance-accounting/1707366-dissertation-the-dollar-pound-exchange-rate
(The Development and Prospects of the Dollar-Pound Exchange Rate Dissertation)
The Development and Prospects of the Dollar-Pound Exchange Rate Dissertation. https://studentshare.org/finance-accounting/1707366-dissertation-the-dollar-pound-exchange-rate.
“The Development and Prospects of the Dollar-Pound Exchange Rate Dissertation”. https://studentshare.org/finance-accounting/1707366-dissertation-the-dollar-pound-exchange-rate.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Development and Prospects of the Dollar-Pound Exchange Rate

The future of the US Dollar

Though a considerable number of nations are still using the dollar as their exchange-rate anchor, there are arguments that the U.... Dollar Since 1944, when the United States and other countries agreed to exchange the dollar for gold, several currencies became pegged to the U.... dollar has remained the dominate currency considered the global reserve currency with most exchange transactions being against the U.... The exchange is between U....
4 Pages (1000 words) Case Study

Questions in Foreign Exchange Issues

The Bretton Woods system is a landmark system designed for monetary exchange rate management that came to play in 1944.... The system proposed the introduction of a pegged foreign monetary exchange rate system that was adjustable.... The Bretton Woods system is a landmark system designed for monetary exchange rate management that came to play in 1944.... The system proposed the introduction of a pegged foreign monetary exchange rate system that was adjustable....
3 Pages (750 words) Essay

The international monetary and finance structure

The Euro: Its Origins, development and prospects.... International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and exchange rate Policy.... The United States goes on to develop much quickly, no matter at a comparatively gradual rate, than several nations with trade excesses, like Japan and Germany.... The Euro's Challenge to the Dollar: Different Views from Economists and Evidence from Cofer (Currency Composition of Foreign exchange Reserves) and Other Data....
3 Pages (750 words) Essay

Business and Canadian Government Policy: International Trade Policy

om/news/world/article/891659--canada-moves-towards-freer-trade-with-india 10 prospects of globalisation around the world have seen the rising of many low-income nations Countries that were perceived as being underprivileged or deprived had emerged as potential global powers within a very short span of time.... Such a nation is Canada that recently has been considering prospects of entering into coalition with South-East Asian nations like China and India.... This coalition will target primarily upon digging up new investment prospects in these developing economies....
10 Pages (2500 words) Term Paper

International Money and Finance

The company's annual report from 2010 provides clues on the exchange rate risks.... Ashtead Group exposure to exchange rate risk develops from translation risk, which emerges from most of the company's assets, liabilities, income, and costs being written in U.... dollars in order to secure the revenue stream, hedging against the translation effect erupting from the shift in the dollar exchange rate.... The company pays dollar interest on its debts to reduce the impact of any shift in the dollar exchange rate on its income (Moffett et al....
4 Pages (1000 words) Essay

International Financial Risk and Control

An author of the essay "International Financial Risk and Control" outlines that the bilateral exchange rate is influenced by various issues.... The assessment of these issues and their impact on the exchange rate between the two currencies is known as fundamental analysis.... nbsp;… The exchange rate of a particular nation's currency determines the price at which it trades for another currency on the exchange market.... The exchange rate amid the currencies of two nations is referred to as the bilateral exchange rate....
8 Pages (2000 words) Essay

Importance of the USA to Qatar Airways Future Prospects

Discussion is built on the basis of macroeconomic variables including inflation, unemployment, exchange rates, growth, interest rates, macroeconomic… All of these variables are discussed considering short-term future while also analyzing their impact on airline's operations....
6 Pages (1500 words) Essay

Pros and Cons of continuing Space Exploration

            But all these prospects rest on the simple debate that whether the amount being spent in this area is worth it, especially when American debt is making life more challenging for the Finance Ministry day in and day out.... million was invested for spacecraft development....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us