The general objectives of this study are to describe recent trade problems and examine

why these problems are related to, and affected by exchange rates. The study first

examines the exchange rate and how it is determined. The study will explore, in detail,

the agencies that determine these rates. This study will also present the pros and cons of

different prices of goods and services in different countries. Specifically, this paper:

(1) defines recent trade problems and how they are affected by the exchange rate;

(2) describes the steps taken within the agencies that determine the exchange

(3) examines the impact of these rates, both good and bad;

(4) analyzes the costs of similar goods in the U.S. and in foreign markets;

(5) discusses the pros and cons of the exchange rate and how it affects trade;

(6) examines various exchange rate systems: floating, fixed, and dirty floating.

The topics of exchange rate and trade both have a variety of factors that cause changes.

As with any study that attempts to explore current developments in the economy, it is

event that the exchange rate strayed from the pre-determined rate. 2

fixed, the floating and the dirty floating. The third section defines trade problems, how

It is also virtually impossible to report on the status of

Some common words found in the essay are:
Exchange Rate, Bretton Woods, Balance Payments, Cost Differences, INTRODUCTION Objective, Japan China, Affect Trade, Limitations Study, exchange rate, Currency Countries, Brazil Russia, balance payments, floating exchange rate, exchange rates, floating exchange, supply demand, dirty floating, foreign exchange, bretton woods, rate determined, exchange system, exchange rate systems, determining exchange rate, exchange rate determined, exchange rate trade,
Approximate Word count = 2636
Approximate Pages = 11 (250 words per page double spaced)