1 / 6

International Business Chapter “6” Overview

International Business Chapter “6” Overview. Presented by Jerry Miles. International Business. Fluctuating Currency Values Foreign Exchange Quotations Exchange Rate Risk Currency Exchange Control Balance of Payments Tariffs, Customs or Import Duties Accounting Practices Debt.

malcolm-tyson
Download Presentation

International Business Chapter “6” Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International BusinessChapter “6” Overview Presented by Jerry Miles

  2. International Business • Fluctuating Currency Values • Foreign Exchange Quotations • Exchange Rate Risk • Currency Exchange Control • Balance of Payments • Tariffs, Customs or Import Duties • Accounting Practices • Debt

  3. International Business • Foreign Exchange quotations • use US$ • Forward Rates for Hard currencies • Premium vs. Discounted trades • Spot Rate • Exchange between two currencies which must deliver within two days • Forward Rate • 30, 60, 90 or 180 days

  4. International Business • Government Controls • Limited Legal use of currency • Government sets value of currency regardless of market • Government must approve foreign currency purchases • Retains Currency within country

  5. International Business • Governments watch BOP as they go into deficit and take action to control deficit • International Business Management Must always be awair of actions which may devalue currency or deflate economy • Accounting Practices • Variation by country • Translation risk

  6. International Business • Debt • Our debt is in Government and Corporate Bonds • LDC debt used to meet Loan payments • US debt is only 6% of GNP • US foreign debt is in US$

More Related