Global Foreign Exchange Markets: The Chinese Yuan and Euro for Greece
The assigned case study is "Do Yuan to Buy Some Renminbi?" at the end of Chapter 9. (I will attach document for this)
Your assignment is to identify one major issue in the case study, provide background for it, analyze it, and reach a conclusion. Your written work should follow the outline:
BACKGROUND, ISSUE, ANALYSIS, and CONCLUSION. You should use these words as headings for your writing. Your work should be typed and double-spaced in Times New Roman 12 font. About two typewritten pages will be sufficient for this assignment.
BACKGROUND: The background should establish a context for the issue. It presents the situation out of which the issue arose. It should provide enough information about the situation so that the reader can understand the issue.
ISSUE: The issue should be presented as a question that can be answered YES or NO.
For example, your question could be: Should this company continue to invest in emerging markets? That is a productive question since it leads to an analysis. An unproductive question could be: How did this company expand in emerging markets?That question leads only to a description of what the company did and may not force any critical thinking. So always frame your question so that it can be answered YES or NO, keep the question simple, and do not ask multiple questions since that will complicate your analysis.
ANALYSIS: Your analysis should examine both sides of the question. You should present at least three arguments on each side of your question, YES and NO, and your arguments should be supported by facts from the case and/or information from the reading assignment. In your analysis you should also apply at least one concept from the reading assignment.
CONCLUSION: Your conclusion should answer your question, YES or NO. You should evaluate the arguments you presented in your analysis and make a decision based on the weight of the evidence. In your conclusion you should summarize the arguments that support your decision. Please note that there is no right or wrong answer. Whatever you decide is valid as long as your conclusion is supported by your analysis.
Be sure to cover each component of this process adequately
Part 2
At the bottom - Topic - Question for written research assignment: "Was the euro good for Greece?"
Written research assignments
For each class unit you will do research to answer an assigned research question.
The question for each unit is in the course syllabus and is also posted under
COURSE MATERIAL in the assignments for the units. Find an article and write a summary (one paragraph) of how the information provided by the article answers the question. Your work, which should be typed and saved as a file, should have the name and source of the article on top and then your summary
Global Foreign Exchange Markets
Student’s Name
Institutional Affiliation
Course
Instructor
Date
Global Foreign Exchange Markets
Background
There are currently 180 currencies in circulation throughout the world. The euro and the US dollar are the world’s most traded and reserved currencies. These currencies establish the norm for purchases on the worldwide market. Nations should convert their local currencies at the exchange rate set by at least one of these countries to do business outside their domestic economy. The Japanese Yen is a fairly popular currency. However, it is not as widely traded as US and EU banknotes (Amadeo, 2020). Given China’s stringent government supervision, the Renminbi has only lately become an official currency known as the Yuan.
Issue
China does business on every continent in the world, whether it is through lending money or making creative investments. China has traditionally used a closed-door approach to its business operations because it is a state-controlled economy (Niyazov, 2020). Current events have led to China relaxing its rules on private banking and allowing transactions through offshore accounts in London, Hong Kong, and Singapore to support domestic and foreign enterprises. Should foreign markets make investments in the Yuan?
Analysis
Chinese exporters would benefit from cheaper borrowing costs, more international contracts, and decreased bond interest rates if they were included in the global currency basket, forcing banks to retain the currencies as foreign exchange reserves. This helps China’s economy flourish, prevents social uprisings, and raises the level of living standards. Since then, the country has increased its GDP by at least 10% and its trade as it gradually spreads worldwide markets (Laura, 2021). Nevertheless, China has already acquired more government securities worth more than one trillion dollars from the United States than any other country (Laura, 2021). Additionally, since the early 1980s, the nation has had a trade surplus, selling more goods and services to the United States than it does to China. As a result, the United Sta...