“International Parity Relationships and Forecasting Foreign Exchange Rates”
Please respond to the following:
From the e-Activity, discuss the implications of the deviations from purchasing power parity for countries’ competitive positions in the world market.
Researchers found that it is very difficult to forecast future exchange rates more accurately than the forward exchange rate or the current spot exchange rate. Examine
the underlying factors behind these findings and make at least two (2) recommendations for improving the forecast of future exchange rate
