3+GlobFinancSt

3+GlobFinancSt - FinancialEnvironment n n n n Foreign...

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n Foreign exchange is the monetary mechanism allowing the transfer of funds from one nation to another. n Electronic 24 hour market n Weekly volume of international trade in currencies exceeds annual value of trade in goods and services. n All nations are exposed to the fluctuations in the currency markets. Financial Environment
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Global Monetary System OLD Bretton Woods System (1944-1971) n Fixed exchange values n Countries’ commitments to maintain fixed values n US agreed to exchange of $35 per ounce of gold CURRENT n Managed Float with SDR’s float -- fluctuating exchange rates SDR’s -- Special Drawing Rights (“paper gold”) (created by IMF in 1969)
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n The IMF oversees global monetary system and aims to: q promote exchange stability and to maintain orderly exchange arrangements q assist in the establishment of a multilateral system of payments in respect to current transactions between member nations q finance members’ balance of payment difficulties (make
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This note was uploaded on 11/15/2011 for the course BUS-M 401 taught by Professor Sasha during the Spring '11 term at IUPUI.

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3+GlobFinancSt - FinancialEnvironment n n n n Foreign...

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