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International Business : The Challenge of Global Competition, 8/e
Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Financial Forces: Influencing International Business

Concept Previews

After reading this chapter, you should be able to:

realize that much money is made, and lost, in the foreign exchange (Fx) markets

understand the role of the U.S. dollar in the world

understand Fx quotations, including cross rates

recognize currency exchange risks

understand currency exchange controls

anticipate financial forces such as balance of payments, tariffs, taxes, inflation, fiscal and monetary policies, and differing accounting practices that affect business

understand sovereign debt, its causes, and its solutions

know that a new small business in a developing country might be a better credit risk than the government in a developing country.





McGraw-Hill/Irwin