Different currencies in a global world
World economic activity is present in international trade, directly influencing the development, welfare and economic growth of countries. This activity is done through the purchase and sale of products and services, as well as with the commercialization of financial assets. Among the most important financial assets in the world are international currencies, which are basically the currencies that belong to a foreign monetary sovereignty with respect to a country of origin. Currencies have a quotation in the financial market with respect to others . The change in its value may be due to several factors, among them we can mention , the political and economic situation of a country, the changes in the policies stipulated by the monetary authority and the variations in the supply and demand of the currency.
Currency is an object that we have used for several centuries as a common exchange material. It is precisely characterized by having an exchange rate that allows us to generate transactions and acquire various goods.
- History and evolution of currency
One of the most important elements in our society is undoubtedly money because without it we can do nothing today. The history and evolution of the currency is an object that, being so small , dominates the markets and the daily life of all people . Therefore , you must first understand why the human being was forced to create it.
- Factors causing different currencies to rise and fall
Every day, more than 5 billion of foreign exchange is exchanged in the financial markets and it is a market that operates continuously for 24 hours per day of the week worldwide ,and transactions can be made using different mechanisms . You should investigate what drives changes in this market and why are exchange rates between countries constantly changing.
- Research about the impact of exchange rate on the economy
It is the exchange rate of one currency for another that explains at certain times why some countries export more than others or why imports of products and services are cheaper, which positively or negatively affects the balance of payments. You should do a research about the impact exchange rate has on economy and international trade.
- Pros and cons of countries implementing their own currencies
Using someone else's currency means that you are subject to their policy decisions and that is one of the reasons why many countries want to have their own currency. Your task is to discuss and explore the pros and cons of doing it and if there are differences between large economies and small economies when it comes to this.
- History and evolution of currency
The following links will help you understand why the human being was forced to create currencies, what are the most powerful currencies today and the history of the currency you use. Through a PP presentation or a poster present your research.
- Factors causing different currencies to rise and fall
There are many factors that influence the exchange rate, such as interest rates, inflation, and/or the economy in each country. Use the links below in order to investigate what drives changes in the financial market and why are exchange rates between countries constantly changing. Use a diagram to present well your outcome about the factors causing the rise and fall of different currencies.
- Research about the impact of exchange rate on the economy
Follow the links given in order to understand why some countries export more than others or why imports of products and services are cheaper. Give real life examples and get creative by showing it through a short theater show or a video.
https://www.investopedia.com/articles/forex/080613/effects-currency-fluctuations-economy.asp
-
Pros and cons of countries implementing their own currencies
For some countries it may be important to have their own currency because it provides the country the ability to simplify business and trade. If your country’s currency is strong against other world currencies it generally means your country can buy more things from other countries because it is worth more but other countries will buy less from you because it costs them more. If your currency is weak you can't afford to buy as much from other countries but they will buy more of what you sell because it's relatively cheaper for them. Use the links provided to write an article about the topic.
https://www.youtube.com/watch?v=HTw4AdvlV6Q&feature=emb_titl
https://www.investopedia.com/articles/investing/050515/why-these-european-countries-dont-use-euro.asp
https://economics.stackexchange.com/questions/17834/why-do-different-countries-have-different-currency
After complete this WebQuest, I can:
| List different currencies | ||
| Reflect about the role of issuing currency in an economy | ||
| Describe the role of exchange rate | ||
| Outline the impact of the exchange rate on exports | ||
| Research about your currency history | ||
| Compile reasons why countries may want to have own currency | ||
| Analyse why currencies have different value | ||
| Identify how international exchange rates set | ||
| Showcase the major aspect of the history of your currency | ||
| Share with your family the information you got | ||
| Evaluate what you buy from different countries/currencies online | ||
| Evaluate what your family buys from different countries/currencies and why |
*If you answered NO to more than half of the statements, you should go through WebQuest again and acquire more knowledge and skills if you answered YES to almost all questions; congratulations on your great success!
On more than one occasion you have probably heard that someone has traveled to the United States and that they have bought a product that has been cheaper than in Spain. This is not because the stores in the United States have discounts with respect to the rest to Spanish stores. Actually, what happens is that the dollar, is cheaper than the euro. This is what is called the exchange rate between currencies, but do you know what it is and how this value is calculated?
The purpose of this WebQuest is to raise awareness of the importance of exchange rate and different currencies not only in our own country but worldwide. It will help you become able to talk about issues regarding exchange rate and explore currencies around the world and their power. You will also have the opportunity to discuss about various exchange rates and their importance in international trade.