BUS 1 Lecture Notes - Lecture 8: Foreign Exchange Controls, International Monetary Fund, World Trade Organization
Document Summary
Countries and companies that were once never considered major players in global markets are now contributing to the dramatic growth in world trade. More and more countries now rely on global trade to bolster their economies, raise their standards of living, provide jobs, and improve their quality of life. International trade improves relations with friends and allies: Helps bolster economies raises people"s standard of living improves the quality of life. The united states is still the largest importer and exporter in the world. Important concept exchange rate - price of one country"s currency in terms of another country"s currency. Currencies float up and down based upon the supply of and demand for each currency: sometimes government steps in and devalues its currency relative to the currencies of other countries. Free trade allows trade among nations without government restrictions. Global vision requires countries to recognize and react to international business opportunities: Be aware of threats from foreign competitors in all markets.
