How can i answer this question it is a college assignment.This is how it goes.?

Question

A world in which exchange rates flactuates constantly is a threat to international marketing. "DISCUSS."

Answer 1

Stability to the economy, worldwide.
Before the Euro dollar, we had the "Black Monday of Oct 19"
The stock market took a huge drop and the ripple effect was world wide. Panic on many levels ensued.

Creating a wave of uncertainty. When there is uncertainty there is instability. Where there is instability, then the general population goes into conservation mode...no spending.

When the exchange rate fluctuates, it becomes, "maybe they know something we don't know" panic follows. etc.

As you can see the rolling waves of panic so goes the market, up and down.

Answer 2

Basically you're being asked your opinion on the topic: A world in which exchange rates fluctuates constantly is a threat to international marketing.

You may begin by agreeing or disagreeing with that statement. Do you agree/disagree that constant fluctuation of exchange rates is a threat to international marketing? Explain in detail why you agree or disagree.

And then you cite references to support your opinion. This would require researching a bit, but I'm sure you'll easily get information on the web.

Finally, you can some sort of a suggestion - but this is optional.

Answer 3

Well if the exchange rate fluctuates (I hope you meant that and not flatuates -which means farting) that can be problematic because:

A) a country may need to change their economic mainstay focus for profitable industry or export and may not be able to move that quickly (ex: shifting from an agricultural to a tourism based economy - see the Carribean)

B) this shift can cause nations to renegotiate trade treaties and perhaps to choose to use different suppliers and consumers

C)If a change in GNP occurs chances are a new marketing campaign budget and target need to be evaulted. For such a large shift, this can take decades.

Keep in mind that it's not just the exchange rate but also instances in changes in currency - like when the Euro came around and also the world stock exhanges as well.

Hope this helps -

Answer 4

only where government are involved in the taxing of trade or the controle of the flow of trade. in a free market exchange rates are self correcting.
government seek to profit off there controle rather than off products the market seeks to profit off products. governments change and effect exchange rate in order to compeat with one another while the market suffers. the market changes to adapt to new exchange rates by trading elswhere tanking the economy or there former trade partner to the degree they once helped it.

Answer 5

So who is it that can't spell, you or your professor?

Without stability of exchange rates then the value of the product varies constantly, so agreement is difficult to achieve and therefore trade is inhibited.

Answer 6

Obviously it's the El Nino Effect!

Answer 7

What?