Economics

Business Economics |

Assignment 1 |

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[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] |

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Table of Contents

1. Introduction 3

2. Exchange rates 3

2.1. General economy 3

2.2. Datawatch 3

3. Current Policy 4

3.1. Datawatch 4

4. References 5

1. Introduction

This report is based on exchange rates and how they affect the general economy and my chosen organisation Datawatch Europe Limited, who are a subsidiary of Datawatch Corporation. Datawatch Corporation is an American technology company that helps organisations to:

* Build and act upon their unique business understanding and knowledge.

* Automatically distribute, share and analyze information across their enterprise in a fast, easy, affordable way.

* Manage their customer service function with powerful solutions that don't require expensive custom programming (Datawatch.com, 2011).

2. Exchange rates

According to Sloman (2008), an exchange rate is the rate at which one currency trades for another on the foreign exchange market. In appendix 1.1 there is a detailed article on the pound and how the government tried to peg the pound against other currencies. According to Dawnay (2001) the pound has floated since 1992, since the pound left the ERM. Since autumn 1992, Britain has adopted a floating exchange rate system and is determined by supply and demand.

As you can see from figure 1.2.1 in appendix 1.2 when demand for £’s equals the supply of £’s you will have equilibrium of the exchange rate.

3.1. General economy

3.2. Datawatch

3. Current Policy

4.3. Datawatch

4. References

Sloman, J. (2008). Economics and The Business Environment, Second Edition, FT Prentice Hall Financial Times: Harlow.

Dawnay, K. (2001). A history of sterling,...