Big five terms are great for describing differences between people. But are they also good for explaining people’s behavior? Is it reasonable to say that “Liz smiled and greeted people happily because she is an extravert”? Or is that similar to saying “It is sunny and warm in San Diego this week because San Diego has nice weather”? In other words, is this sort of “explanation” one that just takes you around in circles?

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https://youtu.be/xwtgByffoUw
While the video provides a reason why a country may want to manipulate the value of it’s currency, doing so is
usually a violation of the free trade rules for fully floating currencies. The Chinese Yuan is a managed float
currency, while the US Dollar is fully floating. You will examine these terms this week.
Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and
click on the CC icon, then select from the menu.
This week we are going to look more globally and examine exchange rates.
An exchange rate is simply the price of one currency in terms of another currency. In other words, how many
US Dollars does it take to buy one British Pound? Remember that an exchange rate ALWAYS involves two
currencies which means two countries. Review in detail, the three Exchange Rate presentations before you
start your work on this week’s discussion assignment.

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