Foreign exchange market
by business & economics research advisor, from the library of congress

in 1971, u. s. dollars were no longer exchanged for gold; and in 1973, the floating exchange rate system that governs the fx market today was put into place. now, all currencies are valued by the market forces of supply and demand. since the abandonment of the gold standard, the fx market has become an important part of international economics. with the advent of floating exchange rates, the foreign exchange market has become unregulated. no institution sets rules for trading, and it is not under the supervision of any international organization. when necessary, governments and central banks often work together to restore stability to the fx market. foreign exchange and international trade are closely connected. together, they affect the economic situation of people throughout the world.
currently, how are foreign exchange rates established?
(a)

Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business.identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats.implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the