Real Exchange Rate - Definition and Data [IMF]

The real exchange rate measures the price of foreign goods relative to the price of domestic goods.

Mathematically, the real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate.

Formally:

R = (E.P*)/P

Where:
R: real exchange rate
E: nominal exchange rate
P*: foreign price level
P: domestic price level

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Invest in Ethereum

Ethereum

Investing in Ethereum is a good alternative for people interested in disrupting innovations with high growth potential and cryptocurrencies in general, and be willing to accept the inherent high price volatility.

Investors in cryptocurrencies are advised to diversify it’s portfolio, and only invest money if they are able to afford capital losses in the case of short term price fall. Anyway, Ethereum is a promising technology in the long term.

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Technical Innovation

Technical Innovation at a Factory

Technical Innovation

What is Technical Innovation

Technical Innovation is the process of implementing new ideas, related with practical knowledge or experience, into a productive process.

Technical innovation results in lower production costs or greater value added. Lower production costs can arise from better production processes. Greater value added can arise from new features or higher quality.

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What is Innovation?

Innovation

What is Innovation

Innovation is the process of implementing a new idea or invention. The result of this process is to generate more added value, reduce costs or offering a new product or service to the market.

Innovation vs Invention

Innovation should not be mistaken for invention. The word invention refers to just the creation of a new idea or method. Innovation not only refers to the creation of a new idea, but also to its application in a productive process.

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Index Funds

Index Fund

Index investing is a form of passive investing that consists in archive the same return as a market index. Usually, it consist in purchasing shares of an index funds. Index funds are mutual funds that mimic the composition of a market index, like the S&P 500 or the Dow Jones Industrial.

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Business Strategic Planning Process

Business Strategy

Strategic planning is a management activity and a process that defines the direction and the objective of an organization over the long term (what should the firm do on the long run?) and that defines how should resources should be allocated to pursue this objectives.

Strategic planning refers to develop a plan of action to achieve a particular goal. It includes an evaluation of the organization and the context. It has a focus on the future. It serves as a guide to allocate resources over the long run, but also as a guide to middle manager.

Taken as an ongoing process, it strategic planning can be a key asset of an organization.

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