Functions of the foreign exchange market


Problem 1. What are the functions of the Foreign Exchange Market? Would international commerce be possible without its existence.

Problem 2. How do exchange rates affect individual international businesses? Do international businesses like stable rates or volatile rates? Explain.

Problem 3. Can firms that expand globally increase their profitability in ways that are not available to them in the domestic markets? What are the constraints on taking full advantage of the potential for increasing profits in international markets?

Problem 4. There are six different way for a firm to enter a foreign market? Provide a brief description of each of these foreign market entry strategies.

Problem 5. What are the factors that influence a firm's ability to sell the same product worldwide?

Problem 6. What are some of the steps that an international business can take to enhance the success of their expatriate manager program?

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International Economics: Functions of the foreign exchange market
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