In 3–4 pages, analyze the concept of exchange rate and explain the purchasing power parity theory of exchange rates. Explain why a quota is more detrimental to an economy than a tariff.By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:SHOW MORE
Globalization and international trade play a very important role in today’s highly interconnected global economy. There are a series of economic relationships that affect the world economies through the exchange of goods and services, international investing through multinational corporations, and interconnected financial markets.
As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.
The resources provided here are optional and support the assessment. They provide helpful information about the topics in this unit. You may use other resources of your choice to prepare for this assessment; however, you will need to ensure that they are appropriate, credible, and valid. The MBA-FP6008 – Global Economic Environment Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the left navigation menu in your courseroom, provide additional resources to help support you.
The resources below provide information about international trade theory and principles.
This assessment has two parts. Be sure to complete both parts before submitting.
Organize your assessment logically with appropriate headings and subheadings. Support your work with at least 3 scholarly or professional resources and follow APA guidelines for your citations and references. Be sure you include a title page and reference page.
|Analyze the concept of exchange rate.||Does not analyze the concept of exchange rate.||Explains the concept of exchange rate.||Analyzes the concept of exchange rate.||Analyzes the concept of exchange rate; explains how rates are determined, the factors that affect rates, and the relationship between different monetary systems.|
|Explain the purchasing power parity theory of exchange rates.||Does not explain the purchasing power parity theory of exchange rates.||Explains the purchasing power parity theory of exchange rates, but the explanation is missing key elements or is unsupported.||Explains the purchasing power parity theory of exchange rates.||Analyzes the purchasing power parity theory of exchange rates.|
|Explain why a quota is more detrimental to an economy than a tariff.||Does not explain why a quota is more detrimental to an economy than a tariff.||Explains why a quota is more detrimental to an economy than a tariff, but the explanation is missing key elements or is unsupported.||Explains why a quota is more detrimental to an economy than a tariff.||Explains why a quota is more detrimental to an economy than a tariff using real world examples.|
|Correctly format citations and references using current APA style.||Does not correctly format citations and references using current APA style.||Uses current APA style to format citations and references but with numerous errors.||Correctly formats citations and references using current APA style with few errors.||Correctly formats citations and references using current APA style with no errors.|
|Write content clearly and logically with correct use of grammar, punctuation, and mechanics.||Does not write content clearly, logically, or with correct use of grammar, punctuation, and mechanics.||Writes with errors in clarity, logic, grammar, punctuation, and/or mechanics.||Writes content clearly and logically with correct use of grammar, punctuation, and mechanics.||Writes clearly and logically with correct use of spelling, grammar, punctuation, and mechanics; uses relevant evidence to support a central idea.|
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