International Parity Conditions Some fundamental questions managers of MNEs, international portfolio investors,importers,exporters and government officials must deal with every day are: What are the determinants of exchange rates? Are changes in exchange rates predictable? The economic theories that link exchange rates,price levels, and interest rates together are called international parity conditions. These international parity conditions form the core of the financial theory that is unique to international finance. 制卧价贸易大考International Parity Conditions „ Some fundamental questions managers of MNEs, international portfolio investors, importers, exporters and government officials must deal with every day are: „ What are the determinants of exchange rates? „ Are changes in exchange rates predictable? „ The economic theories that link exchange rates, price levels, and interest rates together are called international parity conditions. „ These international parity conditions form the core of the financial theory that is unique to international finance