Impact of Exchange Rate in Business - Desklib

International
Finance
Bachelor of Professional Accounting

Bell Beijing
• Impact of Exchange Rate in Business
• Tax Implications
• Role of People Republic of China
• Financial Markets
• Funding Currency
• Derivative Instruments
• Business Growth

Exchange Rate Overview

Impact of Exchange Rate in Business
• China has a fixed exchange rate system which increases the investor
confidence in the certainty of exchange rate value.
• The fixed exchange rate does not allow the movement of the currency and
reflect economic reality (Amiti, & Konings, 2014).
• The floating exchange rate in Australia reflects the current macroeconomic
scenario.
• The exchange rate followed in Australia allows the government to take
relevant fiscal policy (Cooper, 2014).
• The exchange rate in China can significantly impact the business condition if
the Chinese Yuan currency devaluates at a sharp rate.