Foreign key

Because of this, they will not easily be able to compete with other rich countries when they are selling their goods to foreigners. By having a fixed rate, they can have their currency cheaper on purpose. This makes it easier to sell their goods to a foreign country cheaply and make money. This makes it more expensive to import things too, which means that people will choose to buy things from domestic suppliers. This therefore helps the country’s economy to have more employment (Rebelo and Végh…

enabling business environment since their business regulations are confusing and costly. According to Masungure and Shumba (2012, p. 169), the government of Zimbabwe need to open up the economy and create a more conducive environment for domestic and foreign…

Dollarization is the replacement of a countries domestic currency with that of a foreign currency. Dollarization has occurred in several countries including, but not limited to, Panama, El Salvador, and Ecuador. For countries with volatile currencies, dollarization offers them the ability to stabilize their economy. While dollarization has its pros, it is not without its cons, and for Ecuador, this is no exception. In my initial discussion, I believed that dollarization was a positive move for…

comparable in terms of labor costs. If GM facilitates production in Kenya, then it would have an easy access to the resources and cheap labor; while in China and India it would have to compete for the same resources with a large number of domestic and foreign manufacturers. Next, vehicle penetration in Kenya stands at only about 24 vehicles per 1,000 people, compared with about 600 vehicles in the mature markets such as Germany and Canada. This means that the mature markets are overly saturated,…

determinants of foreign currency hedging will be discussed and assessed. Theories for the determinants of foreign currency hedging can be evaluated from two aspects: the level of foreign exchange exposure and how firm’s value will be affected; what kinds of characteristics for the firm influence its decisions for hedging. I will discuss the determinants of foreign currency hedging from this two points of view in the following sections. Multinational corporations (MNCs) involve in foreign…

During World War Two, millions of Japanese-Americans were imprisoned. The American Government were worried about Japanese citizens attacking the United States in their homeland. One reason why the Japanese-Americans were imprisoned was due the citizens choosing to be no-no boys. No-no boys are Japanese-Americans that choose to answer, in questionnaires, no for two particular questions. The two questions were, would you serve in the armed forces of the United States and would you swear to be…

on an international scale. However, three principles that I believe are most important are: (1) the importance of effectively managing human resources; (2) the necessity of exercising ethical practices within a business; and (3) the effect that foreign exchange rates have on a company’s profitability. First, with respect to effectively managing human resources, it is essential for an organization to provide all of its employees with the opportunity to advance and develop their individual…

That deflation Friedman shows was seen as a benefit to many individuals in the late 19th Century. However, that period of deflation also produced individuals and political movements that tried to return that inflation (Friedman 1994). The main individuals behind that movement would be the farmers, silver producers, and the lovers of the greenbacks because it served their interests. Friedman contends that if the United States would have been on a bimetallic standard or a de facto silver standard…

profitability. The other benefit is the ability to open and close positions in only a few minutes or weeks depending on your market read. However there are plenty of other opportunities which currency traders can use to make money. AlfaTrade is one of the key players in the global forex trade. Although the company maintains its headquarters in London, it operates several around the world. Due to its consistent growth and market reputation,…

Modes of entry Modes of entry is the strategic choose of how a company wants to enter into a foreign market in such a way that it will have a positive impact for the company and the area you are trying to enter. (Foreign Market, 2016) There are four major sections that must be considered when entering into a new market the first is Exporting, then Licensing, Joint Venture, and last Direct Investment. (Foreign Market, 2016) Exporting by many leading experts is considering the easiest way of…