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Chapter 9 Outline
Foreign Exchange Losses
at JAL
Introduction
The Functions of the Foreign
Exchange Market
Currency Conversion
Insuring against Foreign Exchange Risk
The Nature of the Foreign
Exchange Market
Economic Theories of Exchange
Rate Determination
Prices and Exchange Rates
Interest Rates and Exchange Rates
Investor Psychology and Bandwagon Effects
Summary
Exchange Rate Forecasting
The Efficient Market School
The Inefficient Market School
Approaches to Forecasting
Currency Convertibility
Convertibility and Government Policy
Countertrade
Implications for Business
Chapter Summary
Critical Discussion Questions
The Collapse of the Thai
Baht in 1997
Notes
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