Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879879
Author: John Wild, Kenneth Wild
Publisher: PEARSON+
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Chapter 10, Problem 12MESP
Summary Introduction

To discuss:

The effect of inflation and interest rates on the nation’s exchange rate with other countries.

Introduction:

The country selected for the Market Entry Strategy Project (MESP) is India. India is one of the fastest growing economies in the world. India is also one of the leading countries in the financial sector as it has several banks with the international presence and one the most attracting investment market.

An exchange rate is a rate at which one currency is exchanged for another currency. For example the exchange rate between the U.S. Dollar and Indian Rupee. The exchange rates between the currencies of two nations depend upon various factors like Inflation rates, Interest rates, current accounts, terms of trade, government debt, and Political Stability & Performance.

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