BUS383 MANAGING GLOBAL BUSINESS

Time for Fighting!

Puzzle of Chapter 6

Puzzle of Chapter 6

Chapter 7

Analyze and discuss the role of the international

monetary system in promoting
international trade and investment.
P202

Chapter 7

The Gold Standard p202-205

Par Value
Fixed exchange rate system

Chapter 7
The Bretton Woods Era( )
The World Bank ( ) p206
IMF p208
- Quota ( ) p208
- SDR p210
A Dollar-based Gold Standard (
) p209

Chapter 7

What is BOP? p217

Records international transactions made in some time
period
Records only economic transactions
Records transactions between residents of one country
and all other countries
Residents include individuals, businesses,
government agencies, nonprofit organizations
Uses a double-entry system

Chapter 7

Why it is important to IB? P217

Identify emerging markets
Warm of possible new policies
Indicate reduction in a countrys foreign exchange
reserves
Signal increased risk of leading to particular countries

Chapter 7
The major components of the BOP accounting system
Current Account p217
Capital Account p219
Official Reserves Account p221
Errors and Omissions p221

Time for a Break!

Questions Feedback for Chapter 6

Describe the factors that influence a firms decision

of FDI.
Explain the impact of product life cycle on
international trade and international investment.
How do the theories of absolute advantage and
comparative advantage differ? (Apple, Brain
Surgeon)

Questions for Chapter 7

1 What is the function of the international monetary

system?
2 Why is the gold standard a type of fixed exchange
rate system?
3 What were the key accomplishments of the Bretton
Woods conference?
4 Why are quotas important to IMF members?

Questions for Chapter 7

5 Describe the differences between a fixed exchange

rate system and a flexible exchange rate system.
6 Why did the Bretton Woods system collapse in
1971?
7 Why was IFC established by the World Bank?
8 What are BOP? Why it is important? What are the
four major accounts of BOP Accounts?

THE END!
Have a nice day!