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Assignment 2: Foreign Exchange Market

In this assignment, you will write a paper describing spot market and comparing foreign markets to the domestic market.

Scenario:

You work for an MNC where new management trainees are often required to travel internationally. A New Hire Handbook is provided to each of the incoming management trainees. The New Hire Handbook contains information about the corporation as well as some important policies and guidelines. Because of your academic credentials, the Senior Vice-President (SVP) of Human Resources (HR) has asked you to write a section for the handbook describing the foreign exchange market. She thinks this information will assist the new hires during international travel. You met with the SVP of HR to get more details on the assignment.

Since the handbook section you are to write is primarily to aid the new hires understanding exchange rates during travel, the SVP suggested you cover only spot market at this time.

You came away from the meeting with the following requirements for this assignment:

  1. Write a section for the New Hire Handbook describing the foreign exchange market. In this section, you will:
    1. Describe the spot market.
    2. Compare foreign exchange brokers and foreign exchange dealers.
    3. Distinguish the terms direct quotesindirect quotes, and cross-rates.
  2. Provide an example of a cross-rate calculation, that is, calculate the cross-rate of Argentinean Peso to Euro.

Write a 2–3-page paper in Word format. Utilize at least two-to- three scholarly sources in your research. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Use the APA format.

Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2.doc.

By Wednesday, June 8, 2016, deliver your assignment to the M5: Assignment 2 Dropbox.

Grading Criteria

Grading Criteria Proficient
Maximum Points

Describe the spot market.

 

Description of the spot market is accurate, specific, and clear.

12

Compare foreign exchange brokers and foreign exchange dealers.

 

Comparison is accurate, specific, and clear. Similarities and differences between foreign exchange brokers and foreign exchange dealers are identified.

16

Distinguish the termsdirect quotesindirect quotes, and cross-rates.

All three terms are accurately defined. Differences between the terms are analyzed.

12

Provide an example of a cross-rate calculation.

The example identified is accurate and relevant to the business world.

12
Writing Standards    

Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources (i.e. APA); and display accurate spelling, grammar, and punctuation.

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation.

8
Total  
60

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