Complex Stakeholder Relationships Essay Example | Topics and Well Written Essays - 2500 words

Complex Stakeholder Relationships - Essay Example The researcher states that the main three stakeholders of the London 2012 Olympics include the BOA (British Olympic Association), Mayor of London and the Government. Other stakeholders are DCMS (The Department for Culture, Media and Sports), Olympic Park Legacy Company and Paralympics GB. Discussion with the stakeholders had revealed that there is a spatial variation between the stakeholders with respect to the plan and expectations of the Olympics. But all the stakeholders agreed to a point that the integration of the Park within the surrounding areas was crucial to the success of the Olympics. Some of the concerned which was raised by some of the stakeholders were with respect to the LMF process which should not be just about the Olympic Park but also on a wider LLV (Lower Lea Valley) area. The fringe was the priority which should surround the Olympic park but there were some concerns that fringe would be the second stage area which would generate a higher economic return. The stak eholders also expressed mixed views on the opportunity that the game would provide for the East London and LLV. Some stakeholders said that Olympics can be used as a hook in order to raise aspiration which would, in turn, improve the quality of life of the people and the also increase the employment opportunities. But experiences from the previous cities which have hosted the Olympics, however, do not provide a strong support for the statement but the stakeholders believe that the event can potentially be used as one of the core mechanism for raising aspiration as well as mobilizing the communities. Some of the stakeholders though and viewed that a careful balance was essentially required between opportunities to maximize it and of expectation. Some of the stakeholders stressed the importance of engaging the private sector in Olympics legacies whereas other argued that the worst scenario of the private sector is that the public sector alone would decide upon the vision of the event but the stakeholders were of the view that the private sector would play a key role in the planning of the park and also of LLV

Five key objectives for Eastman Kodak Essay Example | Topics and Well Written Essays - 1250 words

Five key objectives for Eastman Kodak - Essay Example According to the paper  Kodak was considered as the most profitable corporation in America, which gave its shareholders a return of 18% for many years. The company has continuously invested in developing its competitive advantage in photography business. It is observed that 40% of the revenue of company came from outside United States (US). Though the company had encountered huge profit but the situation was not the same over the past few years as it encountered external pressure in form of competition.This essay discusses that  the new objective changed the imaging group of Kodak which included motion pictures, consumer products and audiovisual products, consumer electronics and photo finishing. The new objective filled the gap in the product line by introducing several new products, which are either prepared by Kodak or any Japanese manufacturers or sold it under the name of Kodak. In order to manage the market share of the company, Kodak took major steps to solidify the market of film processing. It has strategized to stem the flow of low cost foreign photography papers for acquiring control over processing market. The company has also acquired many companies in order to make its base strong in electronic photography sector. This acquisition increased the number of customers for chemical paper products. The declining profit of the company was forced to maintain tits level by massive cost – cutting, which improved efficiency of the products related to photography.

Employee Privacy Rights in the Workplace Essay

Employee Privacy Rights in the Workplace - Essay Example The employees, caught in the middle, depend on references to find gainful employment, but may jeopardize their eligibility if a reference portrays them in a negative light. The wider community (consumers, families, friends and acquaintances of employers and employees) may be equally affected when full disclosure does, and does not, occur. It is contended in this paper that it is vital that standardized national laws should be developed to protect past and future employers, the employees themselves, as well as the communities they work within. Firstly, the growing trend of litigation against former employers will be presented. Secondly, the laws across the states will be outlined in regards to former employer's disclosure of ex-employee information. Thirdly, reasons to standardize the laws will be provided. Finally, a conclusion shall synthesize the main points of the paper, and provide support for the adoption of a standardized national employment and labor policy in regards to termination disclosure. It is becoming more common for employees to ask their former employers for a written reason for their termination of employment, as well as a copy of their personnel record (Boisvert, 1999). It has been suggested that for previous employers, such a request is a cause for concern, as it is often a clear indication of discontent on behalf of the employee, and likely that the employee has consulted with a lawyer and is considering a lawsuit. As such, it is recommended to employers to assume they may be as risk of being sued, and to seek advice from their attorney immediately (Boisvert, 1999). When an employer terminates an employee they must be aware of the risk of being presented with a lawsuit, and have risk management policies in place to minimize such an event from occurring. The process of providing a reference for the employee will play a large part in determining if the employee can make a legal claim (Boisvert, 1999). For this reason, there has been an increasing tendency for e mployers not to provide comprehensive details of a former employees work practices. Many employers are heeding their lawyer's advice to tailor references to provide a neutral profile of the employee. In general, this involves confirming the employee's position, dates of employment and salary (Boisvert, 1999).There are numerous areas of potential liability for the former employer when providing a reference (Lovett & Potter, 2004). Most notably, is the risk of being sued for defamation or invasion of privacy. There is also the risk of liability for retaliation, such as when management takes revenge on an employee for a past non-compliance within the organization. Another liability risk is that of 'compelled self-publication' which occurs when an employee must repeat what they perceive to be false allegations as their reason from termination, so that the future employer does not hear it first from a previous employer (Lovett & Potter, 2004). In general, employers should implement polic y for the response to requests of a written reference, or for requests of information from future employers (Boisvert, 1999). It is recommended that such a policy prohibit employees from disseminating information about their co-workers, and that the policy direct all inquiries for information

Most Significant Events of the 1950s-1990s Essay -- American History

During the course of our American History, there have been events that have changed the course of the nation. In the more recent times, our nation has been through the Civil Rights Movement, Vietnam War, and even the Reaganomics. Despite all the turn of events in the American history, our nation has overcome and survived. Civil Rights Movement of 1954 – 1965 The Civil Rights Movement has been a changing point in the lives of countless minorities. The Civil Rights Movement started in 1954 when Linda Brown was denied entry to a school in Topeka, Kansas due to her race, thus creating the Brown v. Board of Education case. The Brown v. Board of Education case helped mark a turning point for minorities and ruled that it segregation in schools was unconstitutional. In 1955, one of the most famous events in the history of the Civil Rights Movement occurred. Rosa Parks was arrested on December 1, 1955 after refusing to give up her bus seat for a white man. Rosa’s refusal sparked the Montgomery bus boycott. Finally, in 1964, President Johnson passed the Civil Rights Act of 1964. According to John Simkin, â€Å"The 1964 Civil Rights Act made racial discrimination in public places, such as theaters, restaurants and hotels, illegal. It also required employers to provide equal employment opportunities. Projects involving federal funds could now be cut off if there was evidence of discriminated based on colour, race or national origin.† (Spartacus Educational, 1997) The fight for civil rights has been going on for decades in our nation. During the Civil War, President Lincoln tried to fight to end slavery of African Americans in the south. According to the National Archives and Records Administration, â€Å"Presiden... ...source. Retrieved on August 11, 2008 from http://www.spartacus.schoolnet.co.uk/USAcivil64.htm The Watergate Files. August 19, 1974. (Date Unknown) Online Website Resource. Retrieved on August 16, 2008 from http://www.ford.utexas.edu/museum/exhibits/watergate_files/content.php?section=5&page=d The Watergate Files. July 24, 1974 The United States v. Richard Nixon. (Date Unknown). Online Website Resource. Retrieved on August 14, 2008 from http://www.ford.utexas.edu/museum/exhibits/watergate_files/content.php?section=5&page=d Tull, Matthew Ph D., Chronic PTSD in Vietnam War Veterans. (April 3, 2008, Para. 2). Online Website Resource. Retrieved on August 9, 2008 from http://ptsd.about.com/od/ptsdandthemilitary/a/Vietnamlongterm.htm Vietnam War. Vietnam War. (2007). Online Website Resource. Retrieved on August 16, 2008 from http://www.vietnamwar.com/

Renewable Energy

Fung Chi Hong (10549602) Summary Nowadays, some people who supported renewable energy have many questions for fully relying on renewable energy in the future. A factor why people do not consider renewable energy is economics. However, the fact is that renewable energy can solve many economic problems. Anna Leidreiter expresses that the benefits of traditional energy are shared in only a few stakeholders; renewable energy is owned by popular, so the big business do not agree renewable energy.If the benefits from the large enterprise can be shared to popular, a correct energy can transform, it was shown in the history. Also, Anna Leidreiter gives Denmark and Germany as the examples to show fully renewable energy. Finally, she suggests some policies are necessary to replace fossil fuel with renewable energy and countries should exchange the opinion with other countries. Comment: After reading this article about economics and renewable energy, I have follow comment. First, using renewabl e energy is an irresistible general trend.According to the Anna Leidreiter, we can see that using renewable energy can substitute for fossil fuel in the Denmark and Germany. Using renewable energy not only can increase the opportunity of jobs, but also can help the economics stable. However, I think we should not just look to the money. In order to maintain a clean environment to our offspring, we should lay stress on environment protection; one of the things we can do is using renewable energy. Referencing Leidreiter, Anna. â€Å"Local Development through Community-Led Renewable Energy† Renewable Energy World Magazine. 3 Apr. 2013. Web. 10 Apr. 2013 Renewable Energy Fung Chi Hong (10549602) Summary Nowadays, some people who supported renewable energy have many questions for fully relying on renewable energy in the future. A factor why people do not consider renewable energy is economics. However, the fact is that renewable energy can solve many economic problems. Anna Leidreiter expresses that the benefits of traditional energy are shared in only a few stakeholders; renewable energy is owned by popular, so the big business do not agree renewable energy.If the benefits from the large enterprise can be shared to popular, a correct energy can transform, it was shown in the history. Also, Anna Leidreiter gives Denmark and Germany as the examples to show fully renewable energy. Finally, she suggests some policies are necessary to replace fossil fuel with renewable energy and countries should exchange the opinion with other countries. Comment: After reading this article about economics and renewable energy, I have follow comment. First, using renewabl e energy is an irresistible general trend.According to the Anna Leidreiter, we can see that using renewable energy can substitute for fossil fuel in the Denmark and Germany. Using renewable energy not only can increase the opportunity of jobs, but also can help the economics stable. However, I think we should not just look to the money. In order to maintain a clean environment to our offspring, we should lay stress on environment protection; one of the things we can do is using renewable energy. Referencing Leidreiter, Anna. â€Å"Local Development through Community-Led Renewable Energy† Renewable Energy World Magazine. 3 Apr. 2013. Web. 10 Apr. 2013

Tesco Logistics and Operations Management - 584 Words

What is operations management? â€Å"Operations management is key to achieving competitive advantage for organizations, whether they are in manufacturing industry or service industry. Operations management addresses the questions an organization faces in its choice of products and manufacturing technology, utilization of capacity, maintenance of quality, costing and sourcing of materials, and customer handling policies.† What is logistics? â€Å"Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, and controlling the flow of goods, information and other resources like energy and people between the point of origin and the point of consumption in order to meet customers requirements. It involves the integration of information, It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging.† Tesco PLC founded in 1919 is a multinational merchandiser. Their head office is in Cheshunt, England, United Kingdom. They operate within 12 countries with 530,000 staff. From a â€Å"down market retailer† Tesco has transformed in the last â€Å"25 years or so† in to one of the Europe’s leading retailer. The â€Å"visible components† of their success are â€Å"Location†, â€Å"format of retail outlet† and the â€Å"range of products and services† offered both â€Å"online and in store† their â€Å"constant reinforcement of the corporate brand† played an important part however it was their †Logistics transformation† â€Å"lessShow MoreRelatedSupply Chain Management : Tesco And Safeway1392 Words   |  6 PagesSupply Chain Management Supply chain management has emerged as an important aspect in the modern business environment in light of the challenges businesses face because of rapidly changing customer expectations, inefficient product development processes, and increased cost of operations and human resources. 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It is the third biggest retailer on the planet measured by profits and second-biggest retailer on the planet measured by incomes. It has stores in 12 nations crosswise over Asia and Europe and is the basic supply advertise pioneer in the UK (where it has a piece of the overall industry of throughout 28.4%), Ireland, Hungary, Malaysia, and Thailand. Tesco was establishedRead MoreThe Relationship Between Unique Resources and Competitive Advantage for Mega-Retailers1773 Words   |  7 Pageswhile in other cases such attributes may be less easily discernible. To gain some fresh insights into this area with respect to the global retailing sector, this paper provides a review of the relevant literature concerning Walmart, Carrefour and Tesco to determine the extent to which their respective competitive advantages are due to the possession of unique resources. A summary of the research and important findings are presented in the papers conclusion. 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Therefore, it decided to enter theRead MoreTesco s Logistic Strategy Overview2129 Words   |  9 PagesIntroduction Page 1 Tesco s logistic strategy Page 1-2 McDonalds logistic strategy Page 2 Tecso future logistic page 2-3 McDonalds future logistic Page 3 Customers loyalty in Tesco Page 3 Customers loyalty in McDonalds Page3 Conclusion Page 4 Recommendation Page 4 Bibliography Page 4 References Page 4 Appendix Page 5 Introduction In this report i will analyse the logistic operation and the supply chain of Tesco and McDonald andRead MoreTesco Supply Chain7829 Words   |  32 Pagesâ€Å"The Evolution of Supply Chain Management in Retail Sector of Tesco and Analytical Study for the Period of 2005-2011† Chapter One: Introduction 1.1 Introduction Supply chain as a whole can be seen as the flow of water in a river: organizations located closer to the original source of supply are described as being upstream , while those located closer to the end customer are downstream . 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Purpose Of Issuing Currency Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2339 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? In 1907, the Currency Board was established for the purpose of issuing currency and protecting its value. The World Banking Mission which examined economic situation and potential development of a country. It had recommended composing a Centre Bank and eventually the Central Bank of Malaya Ordinance was established in 1959. Don’t waste time! Our writers will create an original "Purpose Of Issuing Currency Finance Essay" essay for you Create order However, the currency issuing authority was transferred to Bank Negara Malaysia after 1967 (Institut Bank Malaysia, n.d. ). According to Intitute Bank Malaysia (n.d.), under the Financial Sector Master Plan (FSMP), the financial industry is now undergoing consolidation phase. Commercial banks are merging with their finance companies. This is to increase competitiveness of the financial institutions by providing one-stop financial services. Malaysia has three derivatives exchanges which commodities, fixed income and equity products. Besides, Malaysia is the one who introduce KLCI futures earlier than India, Taiwan and Korea. The first Malaysian derivative exchange was established at 1980 which is KLCE. The initial derivative product was the Crude Palm Oil (CPO) contract. The CPO futures contract was the only product in its category and remained as the main product (Bacha, 2004). Bacha (2004) found in 1995, Malaysia introduced financial derivatives together with introduction o f Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) (which currently known as KLSE CI Stock Index Futures contracts). After two years, the Malaysian Monetary Exchange (MME) was launched and traded the 3 month KLIBOR contract. The three exchanges, KLCE. KLOFFE and MME have now been consolidated into a single exchange, the Malaysian Derivatives Exchange (MDEX). Thus, nowadays we can trade commodity, equity and interest rate derivatives on MDEX (Bacha, 2004). The relationship between the percentage changes in the spot exchange rate over time and differential between comparable interest rates in different national capital markets known as the International Fisher Effect (IFE). International Fisher Effect (IFE) attributes changes in exchange rate to interest rate differentials, rather than inflation rate differentials among countries. The International Fisher Effect, (IFE) or fisher-open, states that spot exchange rate should change in an amount equal to but in the opposite direction of the difference in interest rates between countries. International Fisher Effect (IFE) to estimate the equilibrium future spot exchange rate S*ÂÂ ¥/$ assuming International Fisher Effect (IFE) holds. Justification for the International Fisher Effect (IFE) is that investors must be rewarded or penalized to offset the expected change in exchange rates. The International Fisher Effect (IFE) predicts that with unrestricted capital flows, an investor should be indifferent between investing in dollar or yen bonds, since investors worldwide would see the same opportunity and compete it away (Moffett, 2012; Madura, 2012). The International Fisher Effect (IFE) is unpredictable due to the different short-term factors that influence the exchange rates and the predictions of nominal rates and inflation. However, the long-term International Fisher Effect (IFE) just provides a little better result. Interest rate differentials always offset by exchange rates, but error alwa ys occur when forecast the future spot rate (Shalishali, 2012). Shalishali (2012) stated that exchange rate fluctuation and interest rate difference are affecting consumers and the worldwide economy. Among others, exchange rates fluctuations can cause inefficiency and misrepresent world prices and further capture investors attention to countries inflation. In addition, the long term investment return and international trade are affected by long-term movements in exchange rates. By knowing some short-term foreign exchange movements, international businesses that deal with foreign exchange transactions on daily basis could benefit. Exchange rate movement will create higher risk. Hence, companies may utilize information available to determine how many derivative securities such as options, forwards, and futures to hedge in order to minimize risk arising from exchange rate movements. Moreover, the actual return of investors portfolio with overseas holding will directly affected by ex change rates. The world has experienced at least two financial crises that have strong contagious effects within the decade of 1997/98 and 2007/08. The Asian Financial Crisis 1997/98 began in July 1997 with the devaluation of the Thailand currency. The key financial institutions in South Korea and Japan shut down due to the worries of global fund withdrawal and at last lead to a collapse of financial market and currency depreciation in regional. In those East Asian countries, there was a dramatically increase in interest rate in 1997 since their currencies collapsed. For instance, short-term rates in South Korea rose from 12 to 30 percent within a month (Li Wong, 2011; Cho Kenneth, 2003). Figure 1 (refer to appendix) reports data characterizing the situation in some Asian countries during the 1997/98 Asian crisis. The Asian crisis is the best characterized as triggered by a mixture confidence crisis in a few countries, which then spread- through trade and depending on the co untry, also financial channels to other countries within and outside the region. It shows that, as a result of the crisis, exchange rate depreciate over the second half of 1997. Increase in interest rate move exchange rate in opposite direction. However, Malaysia was an exception. Even with capital control, the exchange rate still depreciating until it re-pegged Ringgit Malaysia against the US dollar (Sanchez, 2005). Literature Review In IMF point of view, the relationship between interest rate (also known as monetary policy) and the exchange rate is that a rise in interest rate will stabilize the exchange rate. This relationship has been frequently discussed by the World Bank, IMF and US Treasury especially during economy crisis since it is important for policy implications. Hnatkovska, Lahiri, and Vegh (2012) conducted a study and the research studies have established the relationship between the exchange rate and short term interest rates is non-monotonic. This study expressed when there is a smaller increase in the nominal interest rate, the currency will be appreciated. On the contrary, larger raise in nominal interest rate lead to the currency depreciated. Besides, some research studies stated that the nominal exchange rate has negative relationship with the nominal interest rate differential and has a positive relationship with expected long run inflation differential (Shah Rehman, n.d.). A short term interest rate is the premium policy instrument that policymakers applied in order to change currency values. There are three effects that will influence the exchange rate by increasing short term interest rate. First, the money demand effect which indicated higher interest rates will increase the demand for domestic-currency denominated assets hence appreciate the currency. On the other hand, higher domestic interest rates reduce domestic output through a credit channel and this effect will depreciate the currency which defined as output effect. In addition, fiscal effect emphasized on a rising in interest rates tends to increase the debt service burden of the fiscal authority and consequently it increases inflationary expectations and weakens the currency. Besides, physical capital can cause both appreciations and depreciations on the effect of temporary increases in interest rates (Hnatkovska et al., 2012). Other factors of no co-integration between real effective exchange rate a nd interest rate differential such as permanent fluctuation in exchange rates as a result of high inflation rate and interest rates, instable monetary policies, unemployment, poor GDP growth rate, poor administrative system, political instability and improper policies (Shah Rehman, n.d.). Shah and Rehmen (n.d) did a research on the relationship between real exchange rate and real interest rate differential on developing country. In this study, they unable found any evidence to shows the relationship between the variables. Theoretically, the relationship between real exchange rate and real interest rate should hold better in long term than in short term. MacDonald and Nagayasu (2000) have conduct a study on 14 developed countries on the similar topic, the empirical result using the single equation method of Johenson shown the existence of long run relationship, the relationship is even clearer when long term interest rate is used. According to the study of (Li Wong, 2011), on e inspiring finding is that the inter-temporal relationship between real interest rate differential and real exchange rates in Iceland, Singapore, Thailand and India is extremely low. The change in their monetary policy did not generate a significant impact on their capital movement. It suggested the interest rate of other countries has efficiently been adjusted, thus there will not be any impact on real exchange rate. Furthermore, many researchers are interested in conducting studies on countries which involved in economic crisis. Researchers had extended the study to Asian countries that other researchers never been done the research using the period Asian economic crisis. He found the relationships pattern different between pre and post economic crisis, where it changes from positive relationship to negative relationship especially for Indonesia. (Bautista, 2006) Economic crisis has strongly aroused the researchers interest to conduct study on Korea as well. Dekle, Hsiao, and Wang (2001) proved that the empirical result are supportive the traditional view. Monetary tightening and the rise in interest rate successfully appreciating Korea won. In fact, it is consistent with the expectation of IMF as they request Korea to raise their short term interest rate after a sustained period of stability depreciated precipitously. An extended study of Meese and Rogoff (1998) with the purpose to find a stable long run relationship between real exchange rate and real interest rate differentials using Korean Won exchange for US Dollar data for period 1991 to 2011, real interest rate did not affect the real exchange rate significantly before crisis (as cited in Park, n.d.). After the crisis, real interest rate differential had a positive significant effect and Korean foreign exchange reserve a negative significant effect on the real interest rate respectively. They also mentioned that the data fitted the interest rate parity theory better after crisis than before crisis , this is reasonable given openness and integration into global market of Korean financial market. The study on ability of interest rate as a defend tool during economic crisis also is a topic concerned by IMF and World Bank (Caporale, Andrea Cipollini, Panicos, 2005). They investigate the monetary tightening policy in defending the exchange rate from speculative pressure during the Asian financial crisis from 1991 to 2001 on Indonesia, South Korea, Philippines, and Thailand. They found that during the crisis period, there was a simultaneously increase in domestic interest rate in respond to exchange rate depreciation. The effects of an increase in the domestic interest rate on domestic currency, owning a higher probability of bankruptcy of highly leverage Corporation. However, during tranquil periods the nominal exchange rate appears to appreciate sharply in response to rise in the domestic interest rate. A similar study been carry out by (Chen, 2007), while the main study is f ocus on interest rate and exchange rate volatility, the empirical result presented supportive view of high interest rate would no help to defend the exchange rate. He suggested that any structural model proposed in this paper suitable to predict the relationship between real interest rate and exchange rate volatility due to all model are consistent with empirical regularity and provide one of cause and effect. Some researchers are interested to identify the pattern of relationship of fixed exchange rate and interest rate during economy crisis. G. Benigno, P. Benigno, and Ghironi (2007) revealed the relation between interest rate rules, exchange rate regimes, and determinacy of the rational expectation equilibrium of the economy. In this paper, follower country is in the exchange rate regime, it means the country that trying to peg the exchange rate, while foreign is the leader. As discussed inÂÂ  Obstfeld and Rogoff (1996), although a fixed exchange rate implies equality bet ween the domestic and foreign interest rates, pegging the domestic interest rate to the foreign one is not sufficient to fix the exchange rate in all periods (as cited in G. Benigno, P. Benigno, and Ghironi, 2007). It results in instability and indeterminacy. This paper proposed a solution to this problem in terms of interest rate feedback rules for the follower countries so that can ensure the determinacy of the fixed exchange rate equilibrium in a rational expectations setting under relatively weak conditions. The class of rules proposed by this paper is differs from other approaches in the literature (such asÂÂ  Taylor, 1994;ÂÂ  Wieland, 1996) because it does not require the specification of any point in the money supply path (as cited in G. Benigno, P. Benigno, and Ghironi, 2007). Recommendations Based on the research studies, we found that the relationship between interest rates is well explained through the International Fisher Effect, however the previous study more focus on the Purchasing Power Parity (PPP). According to Alan and Mark (2004), PPP is a disarmingly simple theory that hold the nominal exchange rate between two currencies should be equal to the ratio of aggregate price levels between the two countries, therefore a unit of currency of one country will have the same purchasing power in a foreign country. We suggest that either each of the theory should not be ignored because both also will influence the exchange rate effectively. Furthermore, previous researches more focus on their studies using the economy crisis background. So we suggest that they can do some researches on the relationship between interest rate and exchange rates under stable economy conditions. Will the results have the differences if compare to the crisis economy? In addition, we also identified that most researchers only emphasize on the inflation that will depreciate the exchange rate. We recommend that they can also take the deflation into the considerations. Actually deflation can be considered as a natural phenomenon, as far as hard currency economies are concerned. Besides that, deflation can leads to the escalation in the purchasing power parity of each unit of currency. Conclusion In conclusion, excluding factors like inflation and interest rate, the most important determinant of a countrys relative level of economic health is exchange rate. It plays an important role in a countrys trade level which is vital to most every free market economy in the world. Many research studies showed that there are negative relationship between interest rates and exchange rates. Interest rates, inflation and exchange rate are highly interrelated. The exchange rate of the currency holds the bulk of investments determine that portfolios real return. Actually the exchanges rates are established by frequent difficult reasons that often leave even the most experienced economists confused, financiers should still have some understanding of how the currency values and exchange rates play a main role in their investment.