and inflation The Vietnamese economy has shown strong economic performance since the early 1990s (Figure 1). Annual average growth per year was 7.4% for the period since the early 1990s, and in recent years Vietnam had one of the highest growth rates in East Asia. During the 2001-2005 five-year plan, the annual average growth of 7.4% was only slightly below the 7.5% annual average target in the
Words: 9536 - Pages: 39
USD or another foreign country’s as a legal tender for transactions instead of their domestic currency. The reason that a country will opt for dollarization is the result of economy and is seeking for greater stability in the value of the foreign currency over domestic currency. (Investopedia) A country may decide to implement official dollarization in which the currency is replaced by the chosen currency and gives up its right to influence its own monetary policy by adjusting the money supply. A
Words: 638 - Pages: 3
Legal Analysis Basically, entering into business in Taiwan also entails a company to be subjected to taxation requirements. For companies with a head office that are incorporated outside Taiwan, their branch office shall be taxed based on the actual corporate income which they have derived from the local resources. The taxable range in Taiwan for foreign companies is from 20%-25% of the total local earnings. 1.6 Environmental Analysis The companies that seek to operate in Taiwan are subjected
Words: 913 - Pages: 4
.............................................. 3 Question 2 ............................................................................................................................................... 3 3.0 Policies of managing foreign currency exchange rate risk .......................................................... 3 3.1 Holding and issuing derivative financial instruments .............................................................. 4 3.1.1 Cash flow hedges ...........................
Words: 3366 - Pages: 14
The exchange rate An exchange rate is the rate at which one currency is exchanged on another one. This rate differs from country to country and depends on many economical variables, the main of which are the general balance and disbalance of economy, monetary and fiscal policy, the state of the budget, international policy, the condition and development of the country’s economy compared to the world situation and dominating countries, purchasing power of the currency, and other internal and
Words: 2755 - Pages: 12
fixed- exchange rate – the Baht had been pegged to a basket of currencies dominated by the U.S. dollar – and allowed the Baht to float. This Baht quickly depreciated, falling 18% on the first day alone. The collapse of the Thai Baht was followed by speculative attacks on other countries’ currencies (including the Indonesian Rupiah, the Malaysia Ringitt, the Philippine Peso, and the Korean Won) and to a further round of forced devaluations. The collapse of fixed exchange rates was accompanied by
Words: 2247 - Pages: 9
view, it should stay in the Eurozone. Firstly, if it left the Eurozone and adopt the drachma, the country’s economy would suffer from weak currency, high inflation rate and high interest rate. This situation might continue for several years. The Greeks’ living standard then would become much worse than now. Secondly, Greece cannot benefit a lot from the weak currency. The current dominant industry in Greece is the tourism. Greece doesn’t have many natural and labor resources, and doesn’t have high-tech
Words: 1096 - Pages: 5
picture of economy. Macroeconomic variables include economic output, unemployment, inflation, interest rates, money supply, exchange rate, foreign reserves, savings and investment. Variables used in study: • Consumer Price Index (CPI) Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing
Words: 4182 - Pages: 17
Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. Objectives and Reasons for the Establishment
Words: 6452 - Pages: 26
environmental 4. Part of the growth of multinational business over time is due to the realization that specialization by countries can increase production efficiency, making trade essential when a country focuses on the products it produces best. This is an example of which theory of international business? a. product cycle theory b. competitive advantage theory c. imperfect markets theory d. comparative advantage theory 5. According to the ___________, firms become first established in the home
Words: 5343 - Pages: 22
