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The map displayed above marks those areas of the globe in ‘gold’ that still practice the use of pesos today.
The Peso had been the official currency of the Republic of Columbia since 1837, when it replaced the ‘real’ at the rate of 1 peso = 8 reales. However, just a decade later, the Colombian peso was decimalized so that 1 peso could now be exchanged for 10 reales. According to the standards set by the International Organization of Standardization (ISO) for defining the names of currencies, it is abbreviated as COP. Although officially it is denominated in $, the standard abbreviation of the currency among the nationals is Col $.
The Republic of Colombia, with a total area of 1,138,910 square kilometers, is the fifth largest of all the Latin American nations and is about one-ninth the size of USA. As is evident from the displayed map, the country is largely surrounded by Venezuela and Brazil in the east, Ecuador and Peru in the south, Panama and the Caribbean Sea in the north and the Pacific Ocean to the west. Being a part of the Pacific Ring of Fire, the country is prone to earthquakes and volcanic eruptions. A densely populated nation, with a population of nearly 45 million – the 29th largest in the world, the country also has a long history of being one of the most lagging nations in the world in terms of poverty. Colombia is basically an agro-based economy with an abundance of the fertile volcanic soil, tropical forests occupying almost half of the land area in the country and supply of cheap labor. Moreover, the tropical climate in the region is also appropriate for agricultural production. The profusion of inexpensive labor and huge agricultural production has flourished agro-based industries in the nation. These industries are largely concentrated around the processing of agricultural, mineral, and forest products and supplying domestic consumer demand for goods like machinery, vehicles, tools, building
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As a major part of its revenue is in terms of foreign currency, the company is vulnerable to exchange rate fluctuations. To counter this, companies having a global presence hedge their positions by entering
This present essay has two sections. The first section focuses on Japan as a foreign market that plays host to numerous American MNEs. Under this section, the essay will use General Electric, which is an American MNE operating in Japan as the case study to investigate why the company decided to venture into the Japanese market.
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rk undertaken within the US mortgage industry witnessed a huge change over the past few years, wherein usually, the banks were responsible for raising funds and accordingly, the bank lent these funds to the borrowers. Likewise, if in case the borrowers defaulted from paying back
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Moreover, if the PPP is held continuous, the domestic currency would depreciate by the same amount restoring the equilibrium. Thus, the flexible price model of exchange rate determination simply put entails that money demand and supply
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Therefore, the driving force behind the establishment of foreign exchange market is the creation of a system that facilitates the conversion of a country’s currency into another (Sowa & Acquaye 1999, pp.
6 Pages(1500 words)Essay
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