Critical Thinking: Currency Exchange/Conversion
Objective:In finance, an
rate is the rate at which one
will be exchanged for another. It is also regarded as the value of one country’s
in relation to another
. A currency exchange constantly monitors changes in conversion rates to determine the monetary value of each country’s currency. A country is said to have a comparative advantage in whichever good has the lowest opportunity cost. For example Switzerland ha a comparative advantage in the production of chocolate. Opportunity cost measures a trade off. But the good or service has a low opportunity cost for other countries to import.
Requirements:Successful Critical Thinking Exercise will be three (3) to five (5) pages in length and incorporate the information and knowledge gained in the course addressing the areas defined in the Case and Rubric.