Feature of the Month : Currency Wars

As similarities emerge in the globalized world of today, there is one area that remains as different as can be. Currencies around the world find themselves at complete different sides of the spectrum depending on the country’s reserves. A quick look at foreign exchange rates and these differences among national currencies become even more apparent. In recent times, differences in currencies have caused heated debate among countries trying to protect their global competitiveness. These debates are caused by a basic problem–there are critical imperfections in an international monetary system that is based on the use of national currency as the world’s main reserve currency.

These disputes between countries have been coined “currency wars” as many accusations have been made of countries purposely controlling the value of their currency. For example, governments of many countries have tried to boost competitiveness in global markets by lowering their exchange rate. With their currency weaker, their goods become cheaper in foreign markets where currencies are stronger. This tactic makes it harder for businesses in other countries to compete with these cheaper goods. This therefore hurts their global competitiveness making it difficult for countries with stronger currencies to export their products overseas. Currency wars affect more than individual countries but also the global economy as a whole. Perhaps more importantly, these currency wars are actually affecting how international businesses compete around the world.

Featured Resources

Bloomberg Online: Markets Overview
The Markets Overview section of the Bloomberg website offers a wide range of tools and information about financial markets. Real time rates for numerous investments in America, Asia and Europe are available as well as a currency converter for more than 200 currencies.
Category: Finance

XE: Currency and Foreign Exchange
Accessible in multiple languages, this comprehensive currency website provides various foreign currency exchange tools and services including a Currency Update Email Service, a Travel Expenses Calculator, Currency Charts, Historical Rate Tables, and a Universal Currency Converter that allows easy conversion of one currency rate to another.
Category: Standards and Conversions

Featured Academy

International Monetary Systems
The International Monetary Systems module provides one with information concerning: the history of the International Monetary System; the importance of the International Monetary Fund and World Bank, including their basic purposes and functions; what money markets and international money markets are; what international capital markets are and their function in both developing and high-income countries; international security markets; and the basics of the European Monetary System. A case study on Argentina’s recent economic crisis is available.
Category: Institutions and Trade

An Introduction to Microfinance
An Introduction to Microfinance discusses the basics and beginnings of the microfinance industry and provides those looking to invest in microfinance with some basic information for commencing such endeavors. The module will address: The beginnings of micro-credit; investing in microfinance; the ideal client and money practices of the poor; microfinance worldwide: agents of social change; and a case study on the microfinance institution, BRAC, is also included.
Category: Microfinance

globalEDGE Business Review

"An Interview with Tomas Hult on Global Strategy"
by Sarah Singer (Volume 7, Number 2, pp. 1-4, 2013) 

This is an interview with Dr. Tomas Hult on global strategy and related issues pertaining to today’s global marketplace. He is the Eli Broad Professor of International Business in the Eli Broad College of Business at Michigan State University. Professor Hult is viewed as a leading authority on the intersection of international business and supply chain management.  Professor Hult is one of 82 Fellows of the Academy of International Business and Director of the International Business Center at Michigan State University. In research, Professor Hult was ranked as the 75th most cited scholar in “economics and business” between 1997 and 2007 (Thomson Reuters). He was also the 6th ranked management scholars who graduated since 1991 (Aguinis et al. 2012). In total, Hult has received more than 10,000 citations to his research
(Google Scholar).