Unit 3: Discussion – Current Events

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Introduction

Current events raise awareness of global issues is increasingly important as the countries of the world become more interdependent. At the same time, consuming domestic news with a critical eye is vital to enhancing democracy and defeating narrow-mindedness. Review of current events helps with the understanding of the world’s economy, politics, social structures, and environment in order to make the best corporate strategies domestically and globally.

ULOs:  3.2, 3.3, 3.4, 3.5, & 3.6

Directions

• Students are NOT allowed to post all responses on one day.
• See discussion rubrics under course schedule for requirements.
• Please remember to submit your discussion items as early as possible each week to provide enough time for others to respond to your comments.

Question

• Select one current event article from My Finance Lab News link (third link on left of screen under course home) that relates to any topics learned thus far in the course.
• Provide a summary of the article, including how the article relates to the topics we are learning. 

Here is the article I picked

https://www.cnn.com/2021/05/18/media/amazon-mgm-de…

Foreign Exchange Market and International Parity Conditions

Chapter 5 describes the major features of the foreign exchange market including its geographical extent, its three main functions, its participants, and its immense daily transaction volume. It also covers how transactions in the foreign exchange market, including spot, forward, and swap transactions, can be executed. Moreover, it shows methods of stating exchange rates, quotations, and changes in exchange rates.

Chapter 6 describes the core financial theories surrounding the determination of exchange rates including the purchasing power parity and interest rate parity. These theories are central to any understanding of how multinational business is conducted and funded in the world today. It describes the international parity conditions that integrate exchange rates with inflation and interest rates and provided a theoretical framework for both the global financial markets and the management of an international financial business.