Explain the Difference Between Spot Exchange Rates and Forward Exchange

question 42

Essay

Explain the difference between spot exchange rates and forward exchange rates.Briefly explain how the forward exchange market works.

---

Definitions:

Host-Country Nationals

Employees who are citizens of the country in which a multinational corporation's branch or subsidiary is located.

Home-Country Nationals

Employees who are working in a branch of their company or a government's embassy that is located in a foreign country but are citizens of the country where the company's headquarters or government is based.

Third-Country Nationals

Employees who are natives of a country other than the home country or the host country.

Criterion Deficiency

A situation where the criteria used to evaluate performance do not fully capture all the aspects of the job performance.