Discussion 5

Chapter 4 - The International Flow of Funds and Exchange Rates

1. China is said to be a “Currency Manipulator.”  What does this mean? Do you agree? Why and why not?
2. Spot market, Forward Markets and Futures Markets are common foreign exchange rate market options for managing business risks associated with exchange rate fluctuation with international business partners. How do you decide which mechanism is best for your business?
3. Select a current global business event relating to The International Flow of Funds or Exchange Rates from a news source, such as electronic newspapers, New York Times, International Business Times, Economic Times, or CNN News. Provide a brief summary of the article, relating it to the material you have read in chapter 4. Include an explanation of what you learned in this article and if you agree with the author's perspective