There Are Two Methods Used to Forecast Future Exchange Rates

question 2

Essay

There are two methods used to forecast future exchange rates.What are they and how do companies use them to protect against risk?

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Definitions:

Single Factor

In economics, a variable or input that is considered in isolation to evaluate its impact on an outcome or process.

Normative Economics

A branch of economics that focuses on what ought to be or what should happen, often involving judgments and prescriptions for economic policy.

Positive Economics

A branch of economics that seeks to describe and explain the economy as it actually is, without making judgments about its effectiveness.

Judgments

Decisions or conclusions reached after consideration, often in a legal context or in personal assessment.