• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13

Exchange Rates and their Effect on Morocco Report.

Extracts from this document...

Introduction

´╗┐Title of Report: ?Economic report for Morocco? Prepared By: Mark Anderson William Bligh Stephen Dunne Christopher Cornally Sagar Dhalwani Prepared For: Margaret Hurley, Finance Lecturer at NUI Maynooth Introduction Currency Most markets operate by trading goods or service in exchange for money. That is to say today I could go to local farmers market and buy x amount of apples for one euro. I thereby get the goods and the seller receives money which he can then in turn exchange for other goods. The one euro in this transaction is a medium of exchange. Without a currency, markets would revert back to a barter system. Participants in markets would have to exchange goods and services for other goods and services. Currency markets are different because rather than trading currencies for goods or services, currencies markets trade one currency for another currency. Types of Exchange rate regimes Free float Managed Float Different types of currency peg Usage of foreign currency Source: Wikipedia The two basic choices a country has over its exchange rate regime is whether to fix the value of its currency to other currencies or to let it float and let the market decide what the value of its currency should be. In a free floating exchange rate regime the price of a currency is determined by supply and demand. A shift upwards in the demand curve and downwards in the supply for the home currency will lead that currency to appreciate in value. ...read more.

Middle

Morocco's largest trading partners consist of the 27 countries within the E.U., China and the United States. These accumulate to 57.9%, 6.4% and 5.7% of Morocco's trade, respectively. On the 15th June 2004 both Morocco and the United States signed an agreement, the FTA (Free Trade Agreement) making Morocco the 62nd largest export market for American goods. One of Morocco's main imports is oil from Saudi Arabia, which consists of 5.7% of Morocco's imports. Morocco's export market is made up primarily of goods from the primary sector, as Morocco's arable land and sea side location make farming and fishing there most sustainable source of income. Morocco also contains many natural resources like manganese, iron ore, fish and salt. Morocco is also the world's leading supplier of phosphate. Morocco has also become a major tourist destination, mainly popular among Europeans. In 2008, at the beginning of the economic crises, Morocco had 8 million visitors to the country and they have also developed a very ambitious strategy to try and overcome the recession through tourism. This involves building new hotels in sea side resorts and providing 600,000 jobs in the process, this development has been dubbed 'Vision 2010'. Morocco's market economy has benefited from the country's low cost of labour and also its proximity to Europe. Transport of goods to European cities is made easy through the Mediterranean Sea. ...read more.

Conclusion

The Moroccan Dirham is pegged to a basket of currencies which means that the exchange rate can adapt to changes in the market to a certain extent. After studying Morocco?s past and present economic state we have come to the conclusion that if the primary resources are sustainable and there are a large number of tourists each year then Morocco looks like it has a bright economic future ahead. Teamwork Overview Mark Anderson: ?I felt that there was a very good understanding and clear outline in our group project and that everybody worked well together to fulfill their roles in the group work. At the very start of the project we kept in contact through e-mail and after a while of co-operating we decided that we would meet on Tuesdays and Thursdays at a pre determined time. During the meetings we began writing down the topics to cover and when we outlined the general topics we assigned work to each group member. At the later meetings we compared the work done by each member to ensure that there was no overlap of content. At the end when all of the research work was done each member wrote out their topics in their own words and provided the necessary graphs in relation to the material. The topics were assigned as follows: Mark: Conclusion, teamwork overview and editing the report. Stephen: Economic overview of Morocco. William: General outline of exchange rates, currency, introduction. Sagar: Exchange Rate regimes of Morocco (focus on past). Christopher: future outlook for Morocco ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Economics - Classical School of Thought, Keynesian School of Thought, Supply Side School of ...

    Also, the change in rate takes time to affect borrowing, investment and production decisions so that output is finally affected. Consequently, due to Friedman's analysis of lags and the amount of time needed for each step to take effect, he argued that the constant rate of 3% would be better than a changing rate.

  2. Retailing In India - A Government Policy Perspective

    if the recent acceleration in growth of FDI into India can be sustained. 4.3 Direction of FDI inflow into India Engineering, Services, Electronics and Electrical equipment and Computers were the main sectors receiving FDI in 2000-01. Domestic appliances, finance, food & diary products which were important sectors attracting FDI in

  1. Case Study: The Home Depot

    Revenue was $14.3 billion, up 17% from last year's first quarter but slightly less than the $14.7 billion consensus estimate. "While visibility to earnings growth remains clear through the next two quarters, more difficult comparisons are on the horizon -- beginning in the fourth quarter,".

  2. Chinese car market overview. Citroen case study

    threats come from the Japanese carmakers, which are making quiet but certain inroads into the Chinese market. Honda, which started full production in China only in 2000, will sell 60,000 Accords and Odessey minivans this year out of its joint venture in the southern city of Guangzhou.

  1. Exchange rate.

    value of goods or services in UK cost more than that of US, its also means that US has an absolute advantage in international trade with UK. It induces UK goods and services become uncompetitive. In that case, the supply for pounds will increase and pounds will depreciate against dollar, and vice versa.

  2. What might cause an appreciation of a floating exchange rate? Discuss whether an appreciation ...

    It is difficult for government's to offset the power of speculators because their reserves of foreign currencies are very small compared to daily turnover in the market. In 1997 and 1998 speculative attacks on currencies in Asia and seven years ago, the pound was forced out of the European exchange rate mechanism because of speculative selling of the pound.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    They have there own common currency, which is called the Euro, but United Kingdom are not part of this as yet. These countries are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom.

  2. How have interest rates changed over the last thirty years? What affects have these ...

    This is called the transmission mechanism and will affect overdrafts, mortgages and savings accounts. This change in the official rate will affect the price of bonds and shares. It then has a wider affect, changing the demand of both business's and consumers to buy products.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work