Currency Exchange Rate Essay Example | Topics and Well Written Essays - 3750 words

Currency Exchange Rate - Essay Example The exchange rate of a currency is: is fixed, i.e. constant relative to a base currency (usually the US dollar or the euro), by decision of the State issuing that currency. The rate then can only be modified by a decision of devaluation (or revaluation) of that State. A State may not, however, decide to adopt any exchange rate of its currency. If this exchange rate fixed at too high or too low, the exchange rate will be "attacked" in the foreign exchange market. If the monetary authorities are unable to cope (with their foreign exchange reserves), they will change their parity; is floating and determined for each transaction by the balance between supply and demand in the foreign exchange markets. This is an interbank market worldwide currencies, less centralized on specific places of quotation and trade, as based on computer links between banks. The exchange rate is: or a spot price, that is to say "spot" for immediate purchases and sales of foreign currency. In general, the currenc y delivery time is 2 working days during the working days and it may exceed that period if the delivery must be made during the holidays; either a course forward, that is to say "Forward", to exchange transactions at a future due date (the delivery is not made immediately). The mission is to manage risk. It is an agreement to fix today the price at which it will buy / sell currency futures.Exchange rates vary widely during the same day, these variations cannot be explained by the theory of purchasing power parity (PPP).

Business to Business Markets Essay Example | Topics and Well Written Essays - 750 words

Business to Business Markets - Essay Example In the case of business-to-business, a manufacturer offers more attention to the requirements and demands of the wholesalers or retailers so as to retain its image and reputation in the market. Apart from this, in order to enhance its profitability and image in the market, a wholesaler needs to understand and identify all the changing requirements and preferences of the retailers or customers. This might facilitate the wholesaler to enhance its reliability and consistency within the minds of the customers thereby amplifying its profit margin and total revenue as well. Along with this, it might also amplify help an organization or a wholesaler to develop a good relationship with its customers or retailers thereby reducing its business risks. So, implementation of such a technique is extremely effective for any business enterprise or wholesaler to retain its portfolio in the market in future days (Christensen, 2003).  Moreover, it might help the wholesaler to enhance its position and dependency within the minds of the retailers and customers that may boost its portfolio in the market among others. For example: if a retailer or customer offers more concentration over the orange juices without pulps, then the wholesaler might place both pulpy as well as non-pulpy juices within his outlets. Only then, all the attributes or desires of the customers or retailers are offered equal weight-age so that the rate of switchover may be lowered as described by a non-compensatory model of marketing. Such a tactic is used to attract a wide range of customers or retailers towards the wholesaler thereby amplifying its market share and popularity among other rival players.