英语论文网

place rather than the others, which will bring battles for the people who consumer in the world, and then the exchange rate concept arisen. Exchange rate is a rate of one country currency converts to other country currency to trade conveniently in different places. 

Exchange rate is one of the most crucial factors to adjustment in international trading. (S¨ohnk, Gregory, and Bernadett, 2010) Calculating the cost of every product produced by the country, in general, the currency will accordance with the native region, nevertheless, the exchange rate is possible relevant with the cost of product when its traded on the international market. Whether the exchange rate is higher or lower will impact on the international competition of products.

3.0 Factors Influence the Exchange Rate Fluctuation
The exchange rate is influenced largely by the exogenous shocks rather than the endogenous variables. (Christian and John, 2011) There are several reasons which can result the exchange rate fluctuation and some contrary important factors are showing as following:
- The international balance of payments. A country’s balance of payments will appear surplus state which will lead this currency exchange rate increasing whereas deficit shows the currency exchange rate decreasing. 
- If the inflation happened, the currency has two possibilities are devaluations and revaluations, but the inflation will be occurred by many uncertain elements. (Pierre, 2013)
- Once the higher interest in one nation, the higher of the exchange rate.
- Economy growth. One country’s exchange rate will higher than the country with lower economy growth, because its economy growth is a little faster.
- Each country’s exchange rate policy will determine the exchange rate movements.

- The investors’ psychological expectations work a vital effect on the exchange rate fluctuations, especially, for the short-term or extremely short-term exchange rate flux. The higher evaluate and confidence of investors, the higher appreciation of currency.

4.0 The Exchange Rate impact on the Imports and Exports Enterprise
The graph below shows that three currencies of Euro, Japanese Yen and Swiss franc exchange rate change conditions comparison with the US dollars. At the start of Jan. 2008 to around July of 2008, these three currencies were equal with the US dollars, then apart from each other in the following years. Except the Euro currency was keeping a steadily level, the other two currencies of Japanese Yen and Swiss franc were increasing slightly.
Source: UN/DESA, based on data from JPMorgan Chase
4.1 The Appreciation of the Exchange Rate Impact on Companies
The exchange rate appreciation will bring advantages and disadvantages for the businesses of enterprises. When one country’s currency exchange rate appreciation, not only enhancing local residents’ purchasing power in the country, but also encouraging the natives consume in abroad, because the products price will more expensive than before. In addition, the exchange rate movements slightly will bring cost pressure largely for the company, so if the exchange rate appreciation, the cost of limited energies and raw materials are possible decreased and then reducing the company costs while improving the competition, particular for the enterprises who mainly本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。