1. Foreign Exchange and International Finance
CHAPTER 7
11/19/2018
CHAPTER 7
Foreign Exchange and International Finance
7-1 Money Systems Around the World
7-2 Foreign Exchange And Currency Controls
7-3 Currency Transactions Between Nations
INTERNATIONAL BUSINESS

2. LESSON 7-1 Money Systems Around the World
GOALS
Explain the role of money and currency systems in international business.
Identify factors that affect the value of currency.

3. Money and Currency Systems7
Money and Currency Systems
What is money?
Acceptability
Scarcity
Durability
Divisibility
Portability
Why is money used?
Medium of exchange
Measure of value
Store of value

4. Foreign Exchange 7 Balance of payments Economic conditions
Money supply and demand
Risk
Inflation
Political Stability

5. LESSON 7-2 Foreign Exchange and Currency Controls
GOALS
Discuss foreign exchange activities.
Describe the main activities of the World Bank and the International Monetary Fund.

6. Foreign Exchange Activities7
Foreign Exchange Activities
Changing exchange rates
The foreign exchange market
Foreign exchange controls

7. Japanese Yen Per U.S. Dollar7
Japanese Yen Per U.S. Dollar

8. International Financial Agencies7
International Financial Agencies
The World Bank
International Monetary Fund (IMF)
Analyze economic situations
Suggest economic policies
Provide loans

9. LESSON 7-3 Currency Transactions Between Nations
GOALS
Discuss payment methods and financial sources for international business transactions.
Explain other payment methods and financial documents used in international trade.

10. International Financial Transactions7
International Financial Transactions
Foreign trade payment methods
Cash in advance
Letter of credit
Sale on account
Sources of international financing
Short-term financing
Long-term financing

11. Other Payment Methods and Financial Documents7
Other Payment Methods and Financial Documents
Promissory note
Bill of exchange
Electronic funds transfer (EFT)
Commercial invoice
Insurance certificate

12. 7
A Commercial Invoice