Unit VI Scholarly Activity
Your company is deciding to expand to the following countries and you and two other managers will have to visit these countries to set up operations. You have $1,500.00 to convert in each currency. Copy and paste this table into a new document and compute the following:
Amount to convert = $1,500
|Country/currency||USD value/rate (as of 04/15)||Exchange amount|
|Japanese yen||$ 119.58||¥ 179,370|
|Euro||$ 0.9143||€ 1,371.4913|
|British pound||$ 0.6717||£ 1,007.5228|
1 $119.58* $1,500 = ¥179,370.00
2 $0.9143* $1,500 = €1,371.4913.00
3 $0.6717* $1,500 = £1,007.5228.00
Utilizing the same exchange rate, while you are visiting each of these countries, you have to buy supplies/equipment for your operations; you want to determine what it is costing you in U.S. dollars. Please compute the following:
|Exchange rate||Amount in US$|
|Euro||Desks/chairs ()||€1,125.00||0. 0.9143||$1230.44|
|British pounds||Printer ()||£575.00||0.6||$856. 0369|
1¥167,000.00/119.58 = $1,396.55
2€1,125.00/0.9143 = $1230.44
3£575.00/0.6 = $856. 0369
International Monetary Fund (IMF)
International Monetary Fund (IMF)
Promotion of worldwide financial association, safe monetary dependability, smooth progress of global deal, high service and supportable financial progress, plus reduction of shortage across the world is performed by the International Monetary Fund (IMF) which is formed by 188 states.
Greece, from May 2010, has been receiving financial help of approximately 110 billion euro from the euro area Member States and the International Monetary Fund (IMF) where their aim is to aid in expansion and enforcement of Greece’s economy. In order to avoid evasion, wealth, from other European states and the International Monetary Fund (IMF) has been borrowed by Greece, Ireland, and Portugal though Greece is being faced by disaster. Because of the strong financial and political bonds between the United States and Europe, Congress is focusing on the calamity. Effect on Greece GDP after the financial support provided by IMF
Higher entry of low-priced assets, in the 2000s, was observed in Greece as it was powered by redden wealth markets where after its approval of euro in 2001, its level of shareholder assertion increased. Since the intention of European unification (EU) system was to fasten the mass of communal arrears but it failed, the level of competition was not increased by capital influxes. The borrowing costs of Greece, based on the mistaken numerical data, along with hassles of public assets were led by the global monetary crisis of 2008-2009.
A main disaster, as concluded by IMF managers, could be caused by an uncontrolled Greek default. Additionally, they announced a main monetary support set for Greece plus unwavering to sweeping economic growths of Greek government in May 2010. Default was opted by diverges as the wealth was astringent severely after a while even though avoidance was earlier forbidden by IMF technique. In July 2011, a second set of disaster response agencies was declared by European leaders where it needs Greek links’ owners to come clean along with financial support and more strictness.
However, the level of unemployment was 10% which a rise has now been identified to be 16%. GDP: Unhappily, Greece has incomparable banking crisis that explains why is has economic debts of about 16% of GDP. It is clear that this kind of a calamity cannot be controlled within a day.
Job payments have decreased by 15% on average. Inflation and unemployment in Greece has mostly been caused by the reduction of salary which is above 20%. As the retail sector in Greece loosened in late 2012, income expenses from 17 percent in 2012 to approximately 14 percent of GDP in 2013 were reduced by reforms. High prices, in particular food, have been identified in the sector casing the EU by 30% to 40% on average. Effect of GDP and other factors on ICELAND after the IMF financial support
On the basis of fast-track emergency financing approach’s funds, there was an announcement of an IMF set totaling $2.1 billion on 24 October 2008. Since the market recognizes that the banking system was huge by far in contrast to market size, Iceland was amongst the first mortalities when this fall was enforced by self-assurance issues. The Icelandic króna quickly became futile because the shareholders withdrew one by one. The reason why the króna’s worth embarked over 70% is because of the change of the three banks in a week. Then, misfortunes followed the since the state relied on imports.
Iceland has promised to acknowledge the force to assure shareholders and reform bank’s process after it was supported by IMF. Since the repair of household banking needs was allowed by the “new” banks as the difficult duty of classification which was out of most of the foreign duties was contracted by the “old” banks, the government decided to manage the banking issues through the approval of a new bank/old bank plan. Iceland’s GDP has increased by 1 to 2% where the level of inflation and unemployment has also be controlled by Iceland through the development of trade FDI channels as it received support from IMF.
On 30 April 2014, the Ukraine received 17.1 billion dollar support from IMF for the purposes of improving the gas sector, and support the nation’s banking system where announcement of this act was done on August 6th by IMF. However, the nation experience some challenges but some stability has been achieved. Inflation has reduced due to reduction in unemployment plus its GDP in this fiscal year by approximately 1.5%. In order to enhance the development of Hungary as a state, IMF has approved to support it with 15.7 billion dollars.
Two main views run the IMF economy program. They include:
Dependability in the financial sector plus production of the situations for a financial improvement should be enhanced by the agenda at the end of the day.
- To that the debt-financing needs of management will decrease through execution of a significant economic adjustment.
- To support adequate liquescence and muscular heights of assets in the banking body
About the IMF . (n.d.). From http://www.imf.org: http://www.imf.org/external/about.htm
Financial assistance to Greece. (n.d.). From http://ec.europa.eu: http://ec.europa.eu/economy_finance/assistance_eu_ms/greek_loan_facility/index_en.htm
IMF Agrees $15.7 Billion Loan to Bolster Hungary’s Finances . (2008 йил 6-November). From https://www.imf.org: https://www.imf.org/external/pubs/ft/survey/so/2008/CAR110608A.htm