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Unformatted text preview: can supply other good, compared with other countries Balance of trade: difference between a nations imports and exports Balance of payments: Overall flow of money into or out of a country Balance of payments surplus = more money into country than out Exchange rates-domestic economic and political conditions-central bank intervention-balance of payments position-speculation over future currency values Value fluctuate or float depending on supply and demand National governments can deliberately influence exchange rates Business transactions are usually conducted in currency of the region where they happen...
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- Spring '06