PAPER WRITING INSTRUCTIONS/GUIDELINES
Economics 1 : Analyze Foreign Exchange and Investment
Every country has its owncurrency. The value of a country’s currency is directly related to itseconomics. Therefore, the value of each country’s currency is different. Thequestion becomes, “How can countries and businesses do business with each otherwhen the value of each country’s currency is different?” The answer is TheCurrency Exchange Rate. With the advent of the Internet, there has been anexplosion in the Forex Market to the point where this market dwarves all othermarkets. The Forex Market (FX for short) is where currencies are bought andsold and a price is “fixed” on a moment-by-moment basis between the values ofdifferent currencies. This is known as the “currency exchange rate.” Forexample, as of this writing, $1 U.S. will get you $1.31 Canadian. Thisdifference in the exchange rate means that the U.S. Dollar (the U.S. economy)is stronger than the Canadian Dollar (the Canadian economy) because for eachU.S. Dollar, you get more Canadian Dollars. Conversely, for $1 U.S., you’llonly get $0.80 Sterling or British Pound. The U.S. economy is weaker thanEngland’s economy because for each U.S. Dollar, you get less British Pounds.
ResearchUK foreign currency. Perform amacroeconomic analysis of the currency and summarizes the conclusions. Analyzeforeign exchange and investment and the effects each nation’s economy has onanother nation’s economy.
Examinethe FX currency of the U.K. versus the U.S. Dollar over any recent consecutivefive-year period (2016-2020) as to why the exchange rate fluctuated during thatperiod.
Record the currency exchangerate over the five years showing the “significant” points in time such as:
· The starting point for the five-year period
· The high points
· The low points
· Any “relatively” major ups and downs in the exchangerate
· The ending point for the five-year period
Findthe UK FX ticker symbol for the currency
UsingMicrosoft Word or a Word-compatible program. Paper must contain three parts:
· An Introduction
· The Main Body
· A Summary orConclusion
Paper must be a minimum of five pages in length,including a Works Cited page. The submission will be double-spaced, in astandard print font of size 12. Use a standard document format with 1-inchmargins. Do not use any fancy or cursive fonts. Be sure to use correct grammar,punctuation, and spelling. Use the tools available in Word or other softwareprograms such as Grammarly to check and correct the English Composition. CitingYour Work: A minimum of five citations is required. When it comes to citing source material that isn’tyour own, there are two parts to a citation. The first one is the in-textcitation and the second one is the citation presented on the Works Cited pageitself. Improperly formatted citations, or missing either of the two parts ofcitations, constitutes Plagiarism and results in a failing grade of 1. Thecitations must follow APA formatting.
Step 1
Analyze UK VS US versus and find the FX tickersymbol for the currency
Step 2
Perform your research. Go to a website such aswww.xe.com (www.xe.c om/currencycharts/?from=USD