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International Financial Markets: Exchange Rates and Inflation - Coursework Example

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International Financial Markets: Exchange Rates and Inflation

This paper highlights that 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 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 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 asserts that United Kingdom is an international financial center that depends on the maintenance of cooperation with other financial markets and open economy. From this paper it is clear that several factors qualify and win the confidence of investors in UK financial markets. For instance, UK’s economy is an exceptional, innovative, multicultural, and entrepreneurial. The region embraces opportunities of the world market place and qualifies as a prime hub of international trade. UK has strong links with giant global traders such as Asia, United States, and commonwealth countries. In United Kingdom, investors plug directly into the center of global finance, professional and creative services, international talent, and media. The globalized nature of exceptional UK economy is evident in London. London is the heart of international trading and holds many companies such as Fortune 500 that participate in London Stock Exchange. The city offers a variety of business facilities and globally valued skills. In addition, UK does not have a specific law that controls or restricts foreign investment. The law treats foreign businesses as UK-owned companies. Moreover, investors can engage in any business in all sectors of economy with the exception of defense in United Kingdom. Thus, investors have invested in UK financial and stock markets to realize tremendous growth. Investors, with interest to UK markets require understanding pertinent issues of the investment. Such issues include exchange rates, inflation, estimate of spot and forward rates, and internal and external exchange rates.  ...Show more


This paper, Exchange Rates and Inflation, stresses that 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. …
Author : purdyaugustus
International Financial Markets: Exchange Rates and Inflation
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