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Ch. 7: Dealing with Foreign Exchange What determines foreign exchange rates? Case samples - Billabong, Kia, SM Micro a. Supply Demand i. PPP relative price

Ch. 7: Dealing with Foreign Exchange What determines foreign exchange rates? Case samples - Billabong, Kia, SM Micro a. Supply Demand i. PPP relative price differences - Big Mac index 1. Law of One Price ii. Monetary policy interest rates iii. Productivity BoP, U.S. deficit

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