For this discussion try your hand at gambling in the currency exchange market. Take an imaginary $10,000 and purchase some foreign currency at today’s exchange rate, then convert back your foreign currency to dollars in a few days and calculate your loss or gain. For those of you who are high rollers you can “put all your eggs in one basket” and buy just one foreign currency with your $10,000, or for those cautious types you can choose to diversify and purchase multiple currencies.
Many webpages have foreign exchange rates and exchange rate calculators. Some of many include xe.com and x-rates.com. If you really want to get fancy, register at forex.com and get their free currency trading software.
Let your classmates know about your experiences, and share the details of your calculations. Give an initial update of how much money you have made or lost in the first week, and post at least one additional update by the end of the module.
Also, make sure to address the following questions regarding your experience with currency trading:
How does it compare to other types of gambling you’ve done?
Would you ever invest in currencies using your own money after reviewing the material in this module and doing some pretend gambling in foreign currencies?
Shackman, J. (2015). The economic and financial environment of international business. Trident University International, Cypress, CA.
International business finance. (2014). Pearson Learning Solutions. New York, NY.
After going through the tutorials, get into more specifics and details with the following required readings:
Goyal, A. (2013, Sep 19). Dealing with currency volatility. Businessline. [Proquest]
Dlaby, L., & Scott, J. (2006). Foreign exchange and international finance. International Business 3rd Edition. Thompson Higher Education, USA. http://college.cengage.com/school/ebooks/053849106…
Deloitte Research (2006). Managing in the face of exchange rate uncertainty: A case for operational hedging. www.iasplus.com/en/binary/dttpubs/0606exchangeratestudy.pdf