As A Result The Domestic Economy Loses Skilled And Qualified Labour. Thus It

As a result the domestic economy loses skilled and qualified labour. Thus it is believed that labour mobility prevents the need for exchange rate flexibility, (Eiteman, Stonehill & Moffett, 1993).

7. What parties, if any might be harmed by the existence of regional treasury function like Expert Motors?
In consideration of the macroeconomic environment the regional treasury function as a tool for companies like Expert Motor to administrate their foreign currency exposure have significant influences on the conditions within weaker currency countries. Firstly labour market conditions in those countries might be hurt because the comparatively cheap and convenient exploitation based on currency speculations from multinational companies like EM. In the short term it can be argued that it is good for local governments to improve their unemployment rates through foreign companies locating there yet in the longer run exploitation might cause a key segmentation of secondary markets much larger than the primary segmentation in the labour market. In other words the skill level of the employees is low which has a vital influence on the competitive capability of the domestic companies to compete in an international context. Torrington, Hall and Taylor (2005) argue that the numbers of people and skills available in a labour market as well as the complexity of employment regulation are significant elements in human resource decision making processes in a country.
Secondly the treasury function in multinational trading companies like EM might also have an influence on local monetary policies that might have adverse effect on central bank policies. In practice the types of monetary policy depend to a large extent on the character and political complexion of the central bank more than anything else (Lane, 2001) Therefore the relationship between US and European countries can have significant impacts on the operating process in regional treasury centres Pressure from political authorities might de-emphasise role of central banks to some extent in order to maintain a more stable currency situation to attract long term foreign investment in particular in a global economic context
References
Butler, K.C. (2000) Multinational Finance 2nd eidition, South-Western College Publishing, Cincinnati, OH
Copeland, L. (2005) Exchange Rates and International Finance fourth edition, FT Prentice Hall, UK.
Christou, C. (1992) National Monetary Policies and the European Monetary Union, Greek Economic Review, August
Dixit, A. & Pindyck, R. (1995) The Options Approach to Capital Investment, Harvard Business Review, May-June
Eiteman, D.K., Stonehill, A.I. & Moffett, M.H. (1993) Multinational Business Finance sixth edition, Addison-Wesley Publishing Company, US.
Heywood, J.