1 / 5

Business Administration & Management

Business Administration & Management. Mr. Bernstein Theories on International Trade and Investment, pp 98-101 March 17, 2014. Business Administration & Management Mr. Bernstein. Currencies, or FX Consumer goods are sold in the currency of the consumer: Samsung Galaxy is sold in USD

daphne
Download Presentation

Business Administration & Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Business Administration & Management Mr. Bernstein Theories on International Trade and Investment, pp 98-101 March 17, 2014

  2. Business Administration & ManagementMr. Bernstein Currencies, or FX Consumer goods are sold in the currency of the consumer: Samsung Galaxy is sold in USD But the producer counts profits in the currency of its host nation What does Samsung do with the USD it collects from customer sales? What is the exchange rate? If Samsung sells more phones in the US, will the KRW rise or fall?

  3. Business Administration & ManagementMr. Bernstein Theories on International Trade Comparative Advantage Theory: Nations should specialize Product Life Cycle Theory: As innovative products mature, producers look harder at overseas sales

  4. Business Administration & ManagementMr. Bernstein Balance of Trade Current Account = value of exports minus value of imports Capital Account = investment funds flowing into or out of a nation The US runs large trade deficit (current account) with China The US runs large capital account surplus – the Chinese invest capital into US businesses and government bonds

  5. Business Administration & ManagementMr. Bernstein Balance of Trade How does a current account deficit affect currency exchange rates? How does currency exchange rates affect returns on capital investments? How do currency exchange rates affect inflation?

More Related