Graded Project

Graded Project: Analyzing Foreign Exchange and Investment

Instructions

Over the past decade, you’ve heard politicians and the media focus on topics related to “outsourcing” and “emerging markets.” Emerging markets (EMs) are countries where the cost of labor (both direct and indirect) is very low compared to those costs in other countries. Companies in wealthier nations have figured out that they can reduce their costs by outsourcing (moving) many lower-skilled production activities to emerging markets overseas.

Outsourcing isn’t a new idea, but the 1990s and early 2000s saw dramatic increases in the outsourcing of manufacturing jobs to emerging markets, particularly India, China, and Mexico. During this period, big emerging markets (BEMs) and economies were defined as Brazil, China, Egypt, India, Mexico, Poland, Russia, South Africa, South Korea, and Turkey.

Over time, gold prices have increased, commodity prices have soared, and there has been an explosion of exchange-traded funds (ETFs). An ETF is an investment fund that holds assets such as stocks, commodities, or bonds, and is traded on stock exchanges, including foreign exchanges. ETFs have grown in recent years. Some examples of ETFs include the following:

• EWZ for Brazil
• ECH for Chile
• EPI for India
• EWM for Malaysia
• EWW for Mexico
• RSX for Russia
• EWS and SGT for Singapore
• EZA and SZR for South Africa
• EWY for South Korea
• EWT for Taiwan
• THD for Thailand
• TUR for Turkey

These and other ETFs allow individual investors to invest in foreign countries.

Your final project requires you to examine a foreign currency of your choice and provide an analysis of that currency against the US dollar over any recent five-year period. To complete this assignment, examine an ETF for that currency and perform any additional research you need to do to understand the topic. Once you’ve reached a conclusion, write a paper of three to five pages that summarizes what you learned. Follow these steps to ensure that you’ve met all of the criteria for this project:

Step 1: Select a foreign currency you want to analyze.

Step 2: Perform your research. Your textbook can be one of your sources. However, your paper should also include at least four independent and reliable sources. Use general and financial search engines to perform your research.

To find an ETF for a country that you’re interested in, go to an Internet search engine such as Google, and enter the keywords “exchange-traded fund for” the name of the country of your choice. You can see the history of your chosen ETF, in terms of US dollars, by checking or entering the ETF call letters or ticker symbol in a financial search engine such as Yahoo! Finance or Google Finance.

Step 3: Perform your macroeconomic analysis on the material. You need to provide an analysis of your chosen currency against the US dollar over any recent five-year period.

Step 4: Write a first draft of your paper. Your paper should be written using Microsoft Word or a Word-compatible program. Your essay should include a separate title page, and between three to five pages on your topic. The essay should include a brief introduction, several paragraphs that cover the required information, and a conclusion. The last page after the main body of the essay should provide a list of your reference sources.

Step 5: Complete your final draft. Carefully review your essay, correct any errors, and submit your final draft to your instructor.

Use the following writing guidelines to complete and submit your essay:

1. Type your submission, double-spaced, in a standard print font of size 12. Use a standard document format with 1-inch margins. Do not use any fancy or cursive fonts.
2. Read the assignment carefully, and follow the instructions.
3. Include the following information at the top of your paper:
   • Name and complete mailing address
   • Student number
   • Course title and number (Economics 1, BUS 121)
   • Graded project number (70317000)
4. Be specific. Limit your submission to the issues covered by your chosen topic.
5. Include a reference page in either APA or MLA style. On this page, list websites, books, journals, and all other references used in preparing the submission.
6. Proofread your work carefully. Check for correct spelling, grammar, punctuation, and capitalization.

Summary

This project requires you to integrate what you’ve learned in the course thus far with your own independent research and analysis. Your analysis should be focused and objective without deviating from the scope of the project. Make sure your final submission is clear, accurate, and written in a manner that follows all of the instructions.

Writing Guide

To start, choose a foreign currency that you would like to analyze. It could be a currency from a country you are familiar with or interested in learning more about. Once you have chosen a currency, research its performance against the US dollar over the past five years. You can use financial search engines such as Yahoo! Finance or Google Finance to track the performance of an ETF that represents that currency.

When conducting your analysis, consider macroeconomic factors that may have affected the currency’s performance, such as inflation rates, interest rates, political instability, and economic growth. Additionally, examine any significant events that occurred during the period you are analyzing, such as changes in government policies or global economic trends.

In your paper, include an introduction that provides an overview of the currency you are analyzing and the ETF that represents it. Then, discuss the currency’s performance against the US dollar over the past five years and provide an analysis of the macroeconomic factors that may have contributed to this performance. Finally, conclude your paper by summarizing your findings and discussing any insights you gained from the analysis. Remember to include a reference page in APA or MLA style with all the sources you used in your research.

Overall, make sure to carefully follow the instructions provided in the project guidelines and proofread your work for accuracy and clarity. Good luck with your project!