The focus this week is on exchange rates Your assignment thi

The focus this week is on exchange rates. Your assignment this week is create a series of line graphs that track changes in exchange rates over the last five years. Using exchange rate information from the Federal Reserve, create a line chart that tracks changes in the US dollar exchange rate with the Chinese Yuan, the Euro, and the Mexican peso from January 2008 through the current year. Include a data point for each available month over these years. If there are multiple data points available in a month, use the data closest to the beginning of the month. After creating the line graph, copy and paste it into a Word document. Compose an essay that discusses the patterns demonstrated in your graph and the trade implications of these patterns.

Your essay should be a minimum of 500 words and be written in APA format with appropriate citations and a reference page. The reference page should not be included in your word count. Be sure to include specific connections to the material from your text and other resources when appropriate in your essay.

Solution

The exchange rate is the price of foreign currency in terms of home currency. The international trade between two countries allows exchange of goods and services. This exchange between two countries involves the exchange of paper money or currency. To conduct the trade one trading partner need the currency of other. The exchange rate determines how much home currency will need to purchase a basket of good that is priced as one unit of foreign currency.