International Money and Capital Markets Research Paper

International Money and Capital Markets - Research Paper Example A developed economy is defined by high level of economic activities including foreign trade resulting to high demand of foreign currency, especially hard currencies such as US dollar. A higher demand of foreign currency induces increase in exchange rate and the other way round (Taylor, 2001). Exchange rate shares an important relationship to relative price level because; price level establishes a link between foreign price and domestic price. Relative price difference or purchasing power parity is an important determinant of exchange rate as it recognizes various adjustments that need to be made in the exchange rate for maintaining equilibrium in the international currency rates (Auboin and Ruta, 2013). Trade flow can be categorized as trade inflow (import) and trade outflow (export). When the cost of foreign currency is relatively high, countries focus on greater export and less import while low exchange rate result in increasing level of import. However, frequent fluctuation in the exchange rate has negative impact on trade flow because of fluctuation in transaction and conversion costs (Auboin and Ruta, 2013). Interest rate is an influential factor with respect to fluctuation in exchange rate. Studies suggest that higher interest rate result in appreciation in the currency value of a country with respect to that of other because, high interest rate attracts greater investment in the appreciating currency for earning better future returns (Taylor, 2001). Impact of economic factors on exchange rate equilibrium Assessment of exchange rate behavior is a perennial subject of international monetary economics where various macroeconomic factors are examined to understand their role in maintaining equilibrium in exchange rate.

Characteristic of a Research Problem Paper Example | Topics and Well Written Essays - 750 words

Characteristic of a Problem - Research Paper Example After clearly identifying a research problem, it must be translated into a research hypothesis stating a relationship between variables in a number of populations. Therefore, the assignment tend to reflect on the connection of the research problem, the research hypothesis, along with the existing variables (Tacq, 1997). A research problem happens to be the initial step, while, at the same time, the most significant requirement within the research problem. It acts as the basis of a research study, therefore, through ideal formulation, an appropriate study tends to be bound to take place. In order for a researcher in solving a problem, he or she must understand what the problem is, thereby comprehending what one is attempting to do. A research problem, along with the manner in which the researcher formulates it ascertains every step followed when undertaking a research study. Formulating the problem happens to be input into the study while the output turns out to be the quality of research report’s content. As a result, a research problem is in most cases accompanied by a research question. A research question is responsible for the identification of the phenomenon undergoing study (Jeffrey & George, 2000). When defining a research problem, it is essential to bear in mind that is must be specific instead of general. In stances whereby a problem is specific, as well as focused, it turns out to be more answerable compared to if it is general. As a matter of fact, there is a perception that a well formulated research problem happens to be half solved. Therefore, research formulation appears to be like the identification of a destination before embarking of the journey; in the lack of a destination, it is not possible to make out a route, let along the shortest one. Similarly, lack of distinctive research problems, it is impossible to have a clear, economical plan since the research problem happens to be the foundation of the research problem; with the type, along with the design of the building being dependent on its foundation. The majority of research in humanities tend to revolve around the four P's; they comprise of People, Problems, Programs, as well as Phenomena. There are a number o f considerations to contemplate when choosing a research problem that comprise of interest, ethical issues, magnitude, availability of data, measurement of concepts, relevance and level of expertise. However, studies indicate that, on top of these factors, the sociological paradigm, time factor, the researcher’s values, unit of the chosen analysis, the researcher’s methodology and the level of reactivity inherent in a method considered suitable for gathering data should also be put into consideration (Tacq, 1997). There are a number of characteristic that should be put into consideration concerning a research problem, they include (Lynn & Ronald, 2010): a) Idea: Every research problem statement starts with the introduction of the idea the researcher in interested in studying. For instance, if the researcher is studying the impact of parenting technique on the self esteem of children, there is a need to read everything concerning parenting techniques, as well as what is already known concerning the impacts different techniques have on self-esteem. Clarify why the idea is significant; give details concerning the importance of children's self-esteem for the creation of prosocial society, along with the parenting techniques that are a primary element in the creation of self-esteem. In this case, the problem statement might be: "The aim of this research is to explore which of four parenting techniques has a connection with positive children’