Foreign Exchange Market Analysis: Types of Transactions and Diversification Approaches

Overview of Foreign Exchange Market

The foreign exchange market allows for the exchange of one currency for another. Large commercial banks serve this market by holding inventories of each currency, so that they can accommodate requests by individuals. Individuals rely on the foreign exchange market when they travel to foreign countries. For one currency to be exchanged for another currency, there needs to be an exchange rate that specifies the rate at which one currency can be exchanged for another.

Analyze the most common type of foreign exchange transaction which is for immediate exchange at the so-called spot rate, focusing on transaction, quotations and cross exchange rates.

Discuss analytically differences among spot and forward market.

For investors attempting international stock diversification, elaborate on the five common approaches that are available.

The structure of the coursework should be as follows:
Cover Page: Should include the topic, the proposal writer, and date of submission

Table of Contents

Introduction
Review of Related Studies and Literature
Analysis

List of References: a full and detailed list of references should be included particularly relating to your literature review, existing studies and research methodology

Marking Criteria
Marks will be given to your proposal on the basis of four broad areas as follows:

Introduction (20%)
This should include a clearly stated purpose and the aims objections (or central research question and sub questions) should be clear, relevant and coherent. These should not be simply descriptive but involve explanation, comparison, evaluation or criticism. 

Literature Review/Enterprise Context (30%)
This section should include an overview of the relevant existing literature on your topic of study; it needs to be inter-disciplinary wherever possible and theoretically rooted; the review needs to demonstrate of a critical attitude towards source material i.e. does it compare, contrast and criticise a number of relevant concepts, models and theories in terms of their internal logic, structure and consistency; and the review should deal with the key themes and debates surrounding your research question

Analysis (35%)
This section should set out and justify your broad analysis. 

Presentation (15%)
The assignment needs to be well written and structured. Use report style format with appropriate headings and sub-headings. Use page numbers and number tables and figures. Provide a list of sections, appendices and figures. Include a list of references using the Harvard Referencing system