Here is the synopsis of our sample research paper on Exchange-Rate Models-Assessing the Movement of the Canadian Dollar against the US Dollar. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 12 page paper looks at the models which may be used by firms to assess the way exchange rates may move over the following twelve months. The paper uses the example of the Canadian Dollar moving against the US dollar as an example. The models explained and examine include fundamental forecasting, technical forecasting and market based forecasting. The bibliography cites 8 sources.
Page Count:
12 pages (~225 words per page)
File: TS65_TEexmodels.doc
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Unformatted sample text from the term paper:
References 14 1. Introduction Intentional trade has many benefits, the ability to tap the potential of other markets, diversify risk and increase overall
revenues. However, while there are many advantages, there are also risks associated with international trade. For a firm in the US doing with Canada the risk are partially mitigated as
a result of the NAFTA, but this does not eliminate all risks; one risk that remains is that of currency rate fluctuations between the US and the Canadian dollar. Undertaking
business transactions with partners in other countries will usually involve the need to deal with another currency; if a firm is investing in Canada the exchange rate fluctuations may increase
costs or decrease profits with unfavourable moves, whereas favourable moves may have the opposite, more beneficial effects. Therefore, an important part of assessing and managing business is the consideration of
the way exchange rates may move. Forecasting exchange rate movements is essential for financial planning where a firm faces exchange rate risks, needed in order to determine the risks
faced and used as part of the decision regarding the ay the risk may be managed. The problem is that forecasting exchange rate movements is renowned for being difficult; it
is this that has lead to a very active market in currency derivatives where differing traders will have different forecasts. The development of forecasting models has been useful in identifying
potential influences, but their value is mixed as evidence appears to suggest that no single model will provide an accurate forecast, Chinn and Meese (1995) argue that no models are
any more accurate than the random walk model for prediction of a short term nature. However, just because a task is difficult and not reliable does not mean it is
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