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International Financial Markets: Exchange Rates and Inflation - Coursework Example

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High school
Coursework
Finance & Accounting
Pages 7 (1757 words)

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Name Institution Course Instructor Date International Financial Markets: Exchange Rates and Inflation Introduction International financial markets have grown tremendously over time. Many investors are utilizing the unparalleled technological advancement to get crucial information about the foreign stock and financial markets…

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International Financial Markets: Exchange Rates and Inflation

Thus, understanding of international financial markets is very crucial for any company wishing to invest in the global markets. A thorough research before investing in international markets is critically important for the success of the investment. Feng (2007, 35) points out that global markets around the world have suffered instability and stress due to weakening of the international economy. In essence when investing in an international market dominated by foreign currency investors, investors are subject to inflation that dominates foreign markets. Ryan (2007, 112-156) argues that stocks may depreciate against the investor’s currency over time. Therefore, it is extremely crucial for foreign investment to conduct initial fiscal research in order to implement adequate measures to cushion international markets from inflation. Ryan (2007, 102-136) asserts that United Kingdom is an international financial center that depends on the maintenance of cooperation with other financial markets and open economy. This implies that UK plays a central role as a finance hub for European countries and the globe. Thus, UK provides a favorable investment environment and acts as a prime source of financial expertise and liquidity in international markets. ...
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