Update on Foreign Finance

Update on Foreign Finance

As the economy continues to downfall other countries are affected too. China has been involved in the downturn too because the Yen has decreased severely at the hand of America. According to FXStreet.comHowever "the Chinese currency was pinned again at just above 6.8 for every USD." Currently the new Obama administration wants to accuse China for its wasteful spending because it has overspent and abused its right in economic free trade. Yet, according to the BBC China is still expecting new growth with its increase in technology, which will make it even more ahead of the U.S. dollar.

Current Foreign Finance

It seems that the world markets are still behaving poorly but will hopefully look brighter in a new year...a new age. According to x-rates.com for one dollar a person can receive 0.727033 pounds, 1.26607 Canadian dollars, 0.774593 Euros, and 1.5443 Australian dollars. These rates are still dismal but higher than they were in last August of 2008. Around the world stocks are falling desperately into more astringent situations. According to an article on the washingtonpost.com, Singapore businesses may have to expect less success than they wanted because of "unemployment and industrial production in the U.S. and Europe, and falling Asian exports." Because Americans are consuming less, this effects the material markets in other countries, especially the ones that make many of our everyday things like clothes. When the markets in the U.S. failed, countries were also less likely to invest in them because they too would not be making a profit. Even in terms of sponsorship, the American domestic business, AIG, has declined to continue funding the uniforms for the UK Manchester United soccer team ever since it had to borrow money from the U.S. government in threat of going bankrupt, according to CNNMoney.com. Without the means of monetary funds to support domestic businesses in one's own country, it becomes even harder for those countries' businesses to support other international businesses. Especially in this time for the U.S. companies have had to reduce consumption of materials from Asia and other parts of the world. Business and the monetary exchange rates will rebound as soon as governments and businesses realize their faults and make better budgets. I believe it is time for change, and maybe that change can begin in America.

Current Foreign Finance

Currently in the exchange rates of the major monetary units, the U.S. is lacking poorly compared to the U.K. and the Euro, two major currencies in use by many Americans. This decline in the U.S. dollar spot exchange rate signals those American markets should invest more in making their businesses appeasing to foreign companies. The spot exchange rate measures countries' monetary currencies in other According to Wikipedia "The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date." Therefore, without the forward exchange rate, companies would not know when to increase a country's monetary value in other countries by adding extra businesses. The forward exchange rate signals which specific companies should get into the market and which market will be the most profitable, especially in foreign countries, to improve the value of the American dollar in other countries.