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globalEDGE Exercises—Research Task
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Use the globalEDGE™ site (www.globaledge.msu.edu) to complete the following exercises:

  1. The Global Financial Stability Report is a semiannual report published by the International Capital Markets division of IMF. The report aims to provide a regular assessment of global financial markets and to identify potential systemic weaknesses that could lead to crises. Locate and download the latest report to prepare a summary of what IMF sees as the developments and vulnerabilities facing emerging market countries.
  2. The biz/ed Web site presents a "Trade Balance and Exchange Rate Simulation" which helps you understand how a change in exchange rates influences the trade balance. Locate the online simulator (check under the Academy section of globalEDGE) and identify what the trade balance is assumed to be a function of. Run the simulation to identify how exchange rate changes affect exports, imports, and the trade balance.
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