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Environment of Global Finance - Coggle Diagram
Environment of Global Finance
variables
world markets are
exports, imports, the trade balance, and exchange rates.
export more than they import
favourable balance of trade
Economies buy
and sell
goods and services
capital assets in world financial markets.
import more than they export
If these measures are insufficient, a country may devalue its currency
unfavourable balance of trade
Nations try
to maintain a
favourable balance of trade, which assures them of the means to buy
necessary imports.
visible trade
invisible trade
involves the import and export of
goods and merchandise
Brazilian coffee is usually transported
by ocean vessels because these ships are the cheapest method of
transportation
The workers send
money home to support family
immigrant remittances.
In subsequent years, an investment should yield a profit.
Capital for investments abroad can be restricted by requiring
government approval for any new foreign investments.