Buy custom The Exchange Rate in Europe
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1176 |
Essay's paper body
Unemployment rises. European Central Bank President Jean-Claude Trichet called the increase in the EUR's rate versus the USD "brutal" [4]
The trade balance in the EU will tend towards a negative number, given that imports increase and exports decrease.
EU companies which have branches in USD based economies or in the US will report a lower revenue and profit due to the losses on the exchange rate, resulting in potentially lower ?rewards' by the stock markets...
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firms are increasingly buying raw materials for their products from abroad to keep costs lower. But when the dollar falls, it makes those imports more costly. "Ryan Goan, president of Standish, Maine-based Verdia, which makes natural skin care products and supplements, says his costs have gone up 10%-15% in the past year...
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General points of the essay
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