BUSA 3000

Chapter 9 explains how internation al business transactions take place within the global monetary and financial systems. When people think of international trade, they invariably think of trade in products and services. However, the markets for foreign exchange and capital are so much larger. This chapter explores the nature, organization, and functions of the foreign exchange market. Be sure to read about the historical context of the current financial and monetary systems. The le arning obje ctives for this chapter are: 9.1 Learn about exchange rates and currencies in international business 9.2 Explain how exchange rates are determined 9.3 Understand the emergence of the modern. exchange rate system. 9.4 Describe the monetary and financial systems 9.5 Identify the key players in the monetary and financial syste ms 9.6 Understand the global debt crisis. The Discussion Questions are below. What is currency risk? Give an example. What is exchange rate? What is the foreign exchange market? How are exchange rates determined? What factors that influence the supply and demand for a currency? What is the role of Bretton Woods in the history of the exchange rate? What is the IMF &World Bank? What roles do they play? Who are the key players in the monetary and financial systems? 1. 2. 4. 7