Learning Exercise

Comparisons of Global Currencies

In this exercise, students will be first examining the different types of paper currency from six different countries. They will then be comparing the value of the currency compared to 100 US dollars ($100).
Course: Introduction to Business; International Business
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By clicking on a region and country on the maps of the world, the site presents front and back images of that part of... see more

Exercise

Go to the Geographic Directory website and click on Europe.


You will see a large number of countries listed. Select six of these countries. Click on each one, and you will be able to see the front and back of the paper currency. After viewing six of these, answer the following question:


1. What do each of these currencies have in common?


2. How do they compare to the US dollar bill?



Now go to the supplemental website:



(http://www.bloomberg.com/markets/currency/currcalc.cgi)



3. Compare the value of each of the foreign currencies to US dollars.



4. In two weeks, return to this website and again calculate the equivalent amounts of money to the US $.
Have the values changed?



5. If any of the values have changed, how does this affect the purchasing power of a resident of that country who would be visiting the U.S.?

Technical Notes

Students will be using two different web sites.

Requirements

None

Topics

International Business

Learning Objectives

1. To compare paper currency from a variety of companies and determine what the all have in common.


2. To understand how to convert the currency to US dollars.


3. To learn that the value of currencies can change very quickly.