made international trade existent is globalization. It’s the increasing connection and integration of people, organizations, countries and different cultures around the globe. We integrate through political, economical and social issues, trade and foreign investment. We’ve learnt that with globalization, no nations exist in economic isolation (Carbaugh). No country has achieved economic success without being open to the rest of the world. Even the very isolated North Korea has a growing trade…
Foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. FDI is a major source of capital for many developing countries such as Russia and Zambia. It is usually difficult for these countries to solely rely on their own domestic strengths and capacities alone and therefore FDI is considered necessary for these countries as it contributes to their general economic growth. However FDI can have a huge positive and…
international, it looks like the world economy is heading in the right direction. The U.S. and Europe will be happy, because now the Yuan might soon be valued correctly, and China will be happy because they might soon have an important role in the global foreign exchange trading…
Case Study: The Impact of Information Technology (IT) on Market Efficiency in the North American Security Markets As discussed in the previous sections, security markets around the world are using information technology in a verity of applications, and they are computerized to different degrees. Prior to Freund and Pagano (2000), there has been little done in terms of studying the impact of using information technology on the efficiency of exchange markets. Also, there were not enough empirical…
Japanese believe actions speak louder than words, be it facial expressions, body language or the use of silence to get their point across, so it is ideal to be able to interpret these queues to prevent misunderstandings. In Japan respect and honor is key, with that in mind, there is also a strong sense of hierarchy and family. There are protocols when introducing oneself in Japan as well as to how to address someone, in America when meeting or greeting someone formally you would shake their…
Pricing Comparing Japan’s purchasing power with the United States, Sherwin Williams will use the Big Mac Index. As of July 2017, the price of purchasing one Big Mac in Japan is 380.00 JPY or in US dollars, 3.36 USD. The average price for one Big Mac is 5.30 USD in the US. The price of Emerald paints can range from 80 USD to 90 USD in the US. Thus, the retail price of such brand of paint will be priced at 50.71 USD to 57.05 USD in Japan. In Japanese yen, the price will be converted as 5685.15…
Introduction There are two internationalization strategies which play an active role behind the development of small and medium sized enterprises (SMEs): exporting and foreign direct investment (FDI). They either act jointly or individually to affect the growth of such firms. FDI is more effective than exporting strategy for the growth of SMEs. A strategy which incorporates high rate of exporting with high FDI will have obviously higher rates of firm growth. Those firms who take up the…
Whether we like to admit or not, there are two sides to every coin. A head and a tail, a good and a bad. The same can be said for societies. For every utopia, there’s a dystopia lurking underneath that perfection. This is especially true in the society, Oceania, in George Orwell’s book, “1984.” In an attempt to to acquire perfect peace, equality, and compliance throughout their society, they government went through a huge “reform” into a communist society with very little of the freedoms we call…
include: - Foreign currency risk - Inflation risk By relying on the exchange rate staying constant through the term of the bond, Rip Curl is taking on the risks of the foreign exchange market. For example, say that the exchange rate is $1 AUD is equal to $1 CHF, and that Rip Curl issue a $100 face value bond for 1 year with no coupon…
currency since Zimbabweans could not buy the necessary commodities and goods in a domestic market and had to instead turn to the international market to acquire those specific goods. Furthermore, when the multi-currency regime was adopted with all foreign currencies, the Zimbabwe government gave up its sovereignty of monetary policy. It instead was affected by the decisions of central banks from around the world. This lead to an unpredictable currency system as well as an unstable financial…