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Exchange Rates and Financial Management

This paper provides a summary and analysis of the article, "Nominally Cheap or Really Dear?," in the November 6, 2010 issue of The Economist. The article is concerned with the issue of the exchange rate between the U.S. dollar and the Chinese yuan. The reviewer concludes that the calculation of exchange rates is important to financial management in multinational firms, despite the complexities and challenges that are involved.
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Citations 5
Citation Style APA
Sources 4
Pages 2
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Overview Summary An article in the November issue of The Economist addressesthe issue of the exchange rate between the U S dollar and the Chinese yuan Nominally cheap In terms of the nominal exchange rate thestrength of the yuan against the dollar has grown by since However in terms of the real exchange rate the yuan has strengthened byalmost since According to the article a more detailed picturecan be obtained if the real exchange rate is calculated according tochanges in unit labor

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