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Finance - International business
Essay specific features
Written by:
Beverly S
Date added:
November 7, 2013
Level:
University
Grade:
B
No of pages / words:
4 / 1077
Was viewed:
3185 times
Rating of current essay:
Essay content:
High interest rates are associated with higher business risk and make cost of capital more expensive, thus reducing profitability and amount of business investments in the region over a long-run period. On the other hand high interest rates are positively related to short-term exchange rates due to increased demand of the national currency...
displayed 300 characters
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On the other hand high interest rates are positively related to short-term exchange rates due to increased demand of the national currency. This results in higher prices of exported products and services, followed by decrease in exports, and increase in imports.
Businesses?f investment decisions for international markets are thus influenced not only by current interest and exchange rates, but also by expectations for future developments...
displayed 300 characters
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