11 months ago
Last edited at 2:24AM on 4/4/2013
There are differences in what it costs to produce, buy, rent, borrow, etc. in different countries. For example, a loaf of bread in a shop in the UK will not cost the same as a loaf of bread in say, Italy or China. At the same time, countries have different currencies, and one unit of currency in one country may not equal one unit of currency in another. It would be unrealistic for example, to expect the price of the loaf of bread to be say, £1.00 in the UK and $1 in the US, and 1 Indian Rupee all at the same time. £1, $1 and 1 Indian Rupee each have monetary value that is relevant to the respective society. Hope that helps a little.
The value of money in a country is the value that is used when calculating and exchanging the currencies. The traders use trends that would give them profit after changing the values of the present money. You can confirm from a trading agency the fundamental analysis they use.