Thursday, 20 May 2010

Things are not just white, they are at least black and white!

I am now studying for my International Financial Management exam. It is basically about trading domestic currencies for foreign currencies and about analyzing the implications of such trades. And here is the trick that I am having a bit of hard time with. The implications completely differ, depending on from which perspective we look at it. A trade can cause an appreciation of an exchange rate from domestic perspective but the same trade also causes depreciation of the rate from a foreign perspective and vice versa.

And than I realised that it is actually a very good analogy to a real life. Things are often very different depending from which perspective we are looking at them. While we alvays look at things from our perspectives we often do not try to understand things also from the perspectives of others. And it is a pity, because completely new feelings, ideas and opinions often emerge!

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