• 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. Does economic theory suggest that monetary and fiscal policy play different roles in causing ...

    down the adjustment, the economy moves to the new full equilibrium at once. In Dornbusch overshooting model, exchange rates overshoot in response to monetary, but not fiscal policy changes. The key reason for this result is the assumption that financial markets clear quickly but goods markets slowly.

  2. Chinese car market overview. Citroen case study

    international companies through 2000 was the 1996 Auto Industry Policy, which stated that car manufacturers must initially procure 40 percent of parts locally and then increase the localization of parts to 60 or 80 percent within a specified time frame.

  1. The International Monetary Fund And Global Economic Crises

    A country may be unable to raise sufficient funds to meet net international payments. In the worst case, if there is no self-correcting mechanism in place, this situation may evolve into a crisis. The country currency may depreciate to great extents.

  2. Retailing In India - A Government Policy Perspective

    Since information about this market is disaggregated, i.e., with individual brokers, even similar, adjacent plots often command different rentals. Jointly held properties and complex sub-letting arrangements further complicate ownership rights. Finally, high property taxes drive owners to demand a significant part of the payment in cash and without records.

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

    to take advantage and exploit markets in the EU countries because if you have the money then will purchase electronic goods. Austria: has a population of 8,102.6million. Their gross domestic product per head is $25,442 this shows that Austria is producing over $25,000 worth of goods.

  2. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    Furthermore it offers tax exemptions and low tax rates as incentives to allure foreign companies to invest. As the most populated county at the moment and with growth rate of 13% the last 10 years it is very attractive. China mostly concentrates at labor intensive work in the industrial sector, for example assembling and processing.

  1. How is it possible that a tiny, carbon based stone could effect the lives ...

    "Under the plan, all diamonds sold on the world market would have to be accompanied by a certificate confirming their origins. Estimates on the rebels' share of the $6 billion a year international diamond trade range from 4 percent to 15 percent."

  2. Report on interest rate, exchange rate and inflation report on Safeway Plc.

    The government is very clever because he give the control of interest rate to an unelected central bank, which I may think it is the Bank of England in an attempt to avoid the blame. 2.5 High interest rate are bad for exporters.

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