Chapter "financial environment". What you should learn from chapter 3: The basis for the reestablishment of world trade following World War II, the importance of balance-of-payment fi gures to a country’s economy, the effects of protectionism on world trade, the several types of trade barriers, the provisions of the Omnibus Trade and Competitiveness Act,. | Chapter 3 PowerPoint Financial Environment Chapter Overview Historical Role of the . Dollar Development of Today’s International Monetary System Foreign Exchange and Foreign Exchange Rates Balance of Payments Economic and Financial Turmoil Around the World Marketing in the Euro Area Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. Introduction Foreign exchange is the monetary mechanism allowing the transfer of funds from one nation to another. The existing international monetary system always affects companies as well as individuals whenever they buy or sell products and services traded across national borders. Although international marketers have to operate in a currently existing international monetary system for international transactions and settlements, they should understand how the scope and nature of the system has changed and how it has worked over time. Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. Introduction The 1990s – particularly, the second half of the decade – proved to be one of the most turbulent periods in recent history. The adoption of the euro as a common currency in the European Union in 1999 has challenged the supremacy of the dollar as a global currency. Financial crises in Latin America and the . have reverberated throughout the world as a global recession. Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. 1. Historical Role of the . Dollar Each country has its own currency through which it expresses the value of its products. In the post-World War II period, the United States agreed to exchange the dollar at $35 per ounce of gold. The dollar became the common denominator in world trade. In the early seventies, the . dollar standard was dropped. The result has been more volatility and a more likely tendency for the . currency to depreciate due to persistent . trade deficits. Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. 2. Development of Today’s International Monetary . | Chapter 3 PowerPoint Financial Environment Chapter Overview Historical Role of the . Dollar Development of Today’s International Monetary System Foreign Exchange and Foreign Exchange Rates Balance of Payments Economic and Financial Turmoil Around the World Marketing in the Euro Area Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. Introduction Foreign exchange is the monetary mechanism allowing the transfer of funds from one nation to another. The existing international monetary system always affects companies as well as individuals whenever they buy or sell products and services traded across national borders. Although international marketers have to operate in a currently existing international monetary system for international transactions and settlements, they should understand how the scope and nature of the system has changed and how it has worked over time. Chapter 3 Copyright © 2017 John Wiley & Sons, Inc. Introduction The 1990s – particularly, the .
