International Monetary System
In world trade, varied national currencies are swapped for each other by means of rules and procedures set by a system called the international monetary system. To delineate a general standard of value for the world's currencies, such a system is believed to be necessary.

The global monetary structure has always adhered to the organizational framework of the international discipline. In each stage of the financial capitalism there exists a corresponding monetary approach. The monetary structure during the postwar periods catered to the dominance of the United States. This was applied as a tool during the period to enforce the U.S. dominance over all its allies and the developing countries, irrespective of the socialist countries isolated themselves being unconnected from the influence of the financial and monetary disciplines of the global capitalism.

Gold standard was the first contemporary international monetary system. The gold standard contributed for the free exchange between…...

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References

Amin, Samir. Replacing the International Monetary System? - Current Failures of Global Economic Policy. Monthly Review. Volume: 8; No: 1; October, 1993. pp: 93-98

Holloway, Thomas. M. The International Monetary System: Essays in World Economics. - Book Reviews. Monthly Labor Review. Volume: 12; No: 1; January, 1998. pp: 158-164

International Monetary System. The Columbia Encyclopedia. Sixth Edition. 2001. Retrieved from   Accessed on 12 November, 2004.http://www.bartleby.com/65/in/intlmone.html 

Little, Jane Sneddon; Oliveri, Giovanni. P. Rethinking the International Monetary System: An Overview. New England Economic Review. Volume: 16; No: 1; November, 1999. pp: 24-29

International Monetary System and Exchange ate Policies
A report/essay: chapter 17, multinational companies. select topic research write: Multinational vs. domestic financial management exchange rates international trade international monetary system exchange rate policies trading foreign exchange european monetary union interest

rate parity/purchasing power parity international capital structures.

The international monetary system and exchange rate policies

International Monetary systems

These are a set of rules and that regulate how international trade and payments are handled. It facilitates the exchange of capital, goods and services among countries. However, this system does not have a physical presence but, it consists of interlacing rules and procedures and is influenced by the market of foreign exchange. An example of an international monetary system is the International monetary fund. These interlacing rules and procedures are referred to as exchange rate Policies.

Exchange rate policies

These are rules that officials of public finance from different nations have developed and put in place and, they modify…...

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References

Eichengreen. (2011). Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System

Goyal, M., Raman, Wang, and Ahmed; . ( 2011). Financial Deepening and International Monetary Stability.

Michael C. Ehrhardt, & Eugene F. Brigham. (2011). Corporate Finance (4th ed.): Cengage.

OECD. (2011). The Effects of Oil Price Hikes on Economic Activity and Inflation.

According to Chancellor Helmut chmidt the interest rates of the developed countries in the post1990 era were higher than they had ever been "at any time since Jesus Christ" (http://hdr.undp.org/external/HDR_papers/oc3b.htm). In 1983, in Latin America, whose devaluations were enormous, it was recorded that in one year "the effect on the individual private sector, which in [some] cases had been encouraged by the policies of the authorities to borrow, has been devastating...the amount needed in local currency to service external debt has increased three or four times" (Kuczynski,1983, p. 22). The situation in these countries is such: with the decrease of their currency value, more goods must be sold to pay back their debt plus interest, and since their export prices have been steadily declining in the post war years, their accumulated interest swells to a rate that is higher than the nominal dues stipulated in the original contract (http://hdr.undp.org/external/HDR_papers/oc3b.htm).…...

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Sources

Developing countries in the international economic system. Accessed on 1/13/2011 from:  http://hdr.undp.org/external/HDR_papers/oc3b.htm 

InfoPlease, International finance. The International Monetary System. Accessed on 1/13/2011 from:  http://www.infoplease.com /cig/economics/international-monetary-system.html

Kahn, a.A. (19-Jan-2009). International monetary system, globalization, and developing countries. The News, Accessed on 1/13/2011 from: www.opfblog.com/3909/international-monetary-system

Kuczynski, P.P. (1983). Latin American Debt: Act Two, Foreign Affairs, 22-29

functions of the International Monetary system, a few significant institutions which deal with foreign currency as well as conclude on which system of exchange rates is more useful in the corporate world.
History of the International Monetary System:

In the start of the economical world, people were commonly in the habit of using the barter system to purchase goods that were in need. With time though, the system of trading gold and silver coins started to evolve. Around the 19th century, officially, countries started issuing themselves a basic currency. This marked as the beginning of the modern day monetary system of trade.

In the Pre-World War era, money unions evolved which enabled people of different countries to easily exchange currencies. In this period of time, there was a low level of financial crisis and economies were growing steadily. However, with the World War going on, global trade and the flow of capital…...

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References:

Eichengreen, B. (2008). Globalizing capital: A history of the international monetary system. Princeton University Press.

Stein, J.L. (1997). Fundamental determinants of exchange rates. University of Oxford.

The World Bank (2005). Getting to know the world bank: A guide for young people. The World Bank

Thornton, R.C. (2001). The nixon-kissinger years: Reshaping America's foreign policy. Paragon House.

Bretton Woods International Monetary System was invented and put in use from the end of World War II until the mid 1970s. In theory the system was designed to make banking more global and more streamlined. In fact, according to historians, "the Bretton Woods system was history's first example of a fully negotiated monetary order intended to govern currency relations among sovereign states. In principle, the regime was designed to combine binding legal obligations with multilateral decision-making conducted through an international organization, the IMF, endowed with limited supranational authority" (ucsb.edu, 2013).One of the elements of this system which manifested in practice was the fact that so much of th4e development and nuances of this system were directly reliant on the needs and policies of the most influential member of this international banking system; this member was the United States. One of the fundamental assumptions that the design of this system…...

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References

Columbia.edu. (2013). Labor Productivity and Comparative Advantage. Retrieved from Columbia.edu:  http://www.columbia.edu/itc/sipa/u8213-03/packet/krugman2-300.pdf 

Duhigg, C., & Bradsherr, K. (2012, January 12). How the U.S. Lost Out on iPhone Work. Retrieved from Nytimes.com:  http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?pagewanted=all 

Investopedia.com. (2013). Definition of 'Quantitative Easing 2 -- QE2'. Retrieved from Investopedia.com:  http://www.investopedia.com/terms/q/quantitative-easing-2-qe2.asp 

Leeds, S. (2010, November 8). The Arguments Against QE2. Retrieved from Leedsonfinance.com: http://leedsonfinance.com/2010/11/08/the-arguments-against-qe2/

Foreign Monetary System
A monetary system is any structure initiated by the government and mandated to issue currency, acknowledged as the medium of exchange by its citizens and governments of other nations. The central bank manages the monetary system of a country; this same bank has the responsibility of printing money and controlling the economy. Since the colonial period, coins from the European colonies had circulated in all the colonies. The Spanish coins gained dominance due to the scarcity of coins, during this time; the main form of trade was barter trade. The trade-involved items such as rice, tobacco, or animal skins, which took the form of money paper and notes, had varying rates of discount in different colonies rendering them of very low value (onald & Wright, 2006).

The high population in the U.S. called for increased trade and commerce. This forced the United States government to look for ways to…...

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References

Ronald, M. & Wright, R.E. (2006). Development of the U.S. Monetary Union. Journal of Financial History Review, 13(1), 19-41.

Anonymous, (2011). Challenges and risks of the International Monetary System. Journal of Economic Review, 22(5), 768.

Eichengreen, B.J. (2008). Globalizing capital: A history of the international monetary system.

Princeton: Princeton University Press.

Barry Eichengreen (2011) has speculated that the U.S. dollar may be on the decline as the world's vehicle currency. The dollar has performed this role since at least Bretton oods, when the financial and political might of the United States allowed it to take the lead in the global financial system from Great Britain. However, that lead is being challenged today by two other currencies. One is the euro, which derives from the Eurozone, a basket of nations that has an economy around the same size as the United States. The other is from the Chinese yuan, a currency that is pegged to some degree to the U.S. dollar, but which is backed by the world's third-largest economy (behind the U.S. And Eurozone) and one that is growing rapidly. The creation of the euro immediately fuelled speculation that it would overtake the dollar as the world's vehicle currency, and…...

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Works Cited:

Devereux, M. & Shi, S. (2008). Vehicle currency. University of Toronto working papers. Retrieved November 29, 2011 from  http://ideas.repec.org/p/tor/tecipa/tecipa-315.html 

Eichengreen, B. (2011). Why the dollar's reign is near an end. Wall Street Journal. Retrieved November 30, 2011 from  http://online.wsj.com/article/SB10001424052748703313304576132170181013248.html 

Goldberg, L. & Tille, C. (2005). Vehicle currency use in international trade. Federal Reserve Bank of New York, staff report #200.

Lim, B. & Qing, K. (2011). China to step up ASEAN yuan trade settlement. Reuters. Retrieved November 29, 2011 from  http://www.reuters.com/article/2011/10/20/us-china-economy-yuan-idUSTRE79J2JR20111020

What kind of regional and international cooperation is needed to respond to emigration pressures in many low and medium income countries within EU? In addition to the existing EU standards on migration, what other measures could be taken at the national, regional, and international levels to better protect migrants? Answers to these questions inexplicitly have direct implications for the growth environment and have become more pressing issues as the enlargement continues.
A balanced budget exists when tax revenues equal government spending. Within the EU, economic policy dictates that efficiency is achieved when the amount of revenue collected by the government is what is spent in a given period. Hence budget deficits and/or surpluses represent a misallocation that can lead to macroeconomic stability within an economy. As the growth cycle within Europe continued and deepened in 2008/2009, it was clear that macroeconomic objectives for all member states became misaligned and inefficiencies…...

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REFERENCES

Barro, R., (2000). Rule of Law, Democracy, and Economic Performance. Index of Economic Freedom, Chapter II.

Basu, K., (1991). The international debt problem, Credit Rationing and Loan Pushing: Theory and Experience. Princeton Studies in International Finance, 70.

Bulow, J. And Rogoff, K., (1990). Cleaning up Third World Debt Without Getting Taken to the Cleaners. Journal of Economic Perspectives, 4, 1.

Cole, H., and Kehoe, T., (1996). A Self-Fulfilling Model of Mexico's 94-95 Debt Crisis. Federal Reserve Bank of Minneapolis, Paper 210.

Other tools frequently used in this approach are positioning surveys and moving-average trend following trading rules. Fund managers regularly use these patterns to take informed decisions for short-term investments (Exchange ate Forecast, 2010).
Exchange rate risk affects both revenues and costs, which in turn affects a company's marketing, production, and financial decisions (Shapiro, n.d.). If a company's revenues are down then they might find themselves with less money to produce and market their product or service. If a company cannot produce or market their product or service they will probably not remain in business for very long. This is why it is so important to make financial decisions based upon a good model for forecasting exchange rates. A company's bottom line and ultimately their continued success rely heavily on their capability to have enough money to produce products and market them. A company that has no money to manufacture and…...

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References

2011 New design solar water heater. (2011). Retreived from  http://www.alibaba.com/product -

gs/504296912/2011_New_design_solar_water_heater.html

Boyabatl, O. & Toktay, L.B. (2004). Operational Hedging: A Review with Discussion.

Retrieved from  http://www.prism.gatech.edu/~bt71/articles/pompaper.pdf

The main advantage of this association is that you will get to control the production process and both collaborators will have the right to question and manage everything. It will require high negotiation skills, primary high investments, but the market is full of potential. By joint venture we will have the possibility to interfere in the recruitment process, deciding who the best people for the jobs are. For India, there will also be an important gain. Not only do we stimulate intern, national production but we also give new job opportunities to citizens. Moreover, due to the fact that India has highly trained people in the technological domain, we might improve our product's characteristics or even come up with new ways of reducing the costs. Moreover, the assembling parts will be less expensive as their transportation costs will be lower.
ecommendations

When choosing a country for expansion, one has to pay…...

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References

Alibaba.com, 2007, Who is the leader in software.. china or India?, [Online] Available at  http://resources.alibaba.com/topic/23730/Who_is_the_leader_in_software_china_Or_India_.htm 

BBC News, 2007, Country Profile: India, [Online] Available at  http://news.bbc.co.uk/1/hi/world/south_asia/country_profiles/1154019.stm 

Directory of Official Websites of the Government of India, 2007, [Online] Available at  http://goidirectory.nic.in/ 

Farlex, 2007, the Free Dictionary, [Online] Available at  http://www.thefreedictionary.com

27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.
Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:

1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as volume of…...

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References

Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.

Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.

Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.

Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.

Liquidity shocks on the international arena can have a strong negative impact on less developed countries whose access to funding sources is already reduced.
The clearing risk is a specific risk, which combines credit risk, in the sense that it results from a counterparty's inability to meet its liabilities, market risk in the sense that it is caused by market shifts (general and specific market risk) between the time a transaction is executed and the time it is cleared, as well as liquidity and systemic risk." (Casanova, 2000). The clearing risk is assumed by clearing houses, which guarantee the proper settlement of transactions done by the members. These institutions engage themselves to bear potential replacement costs if either one of the trade counterparties can't fulfill its obligations. In international markets this risk is increased as the international arena as mentioned before it more dynamic and volatile and the chance of…...

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Reference List

Casanova, J - F. 2000 - Role Played by Risk Management and Clearing Systems in the Economy of Future Exchanges and ECNs. UNCTAD, www.unctad.org

Eichengreen, B. 1990a. Trends and Cycles in Foreign Lending. CEPR - Center for Economic Policy Research. Working Paper N"451.

Eichengreen, B. 1990b, Economic Policy - International Lending, Center for Economic Policy Research. Working Paper N"452.

Investopedia, Accessed October 2008, www.investopedia.com

Given the high degree to which AIDS impedes global economic integration, in particular of sub-Saharan Africa, it would be reasonable to think that such a transnational issue would bring nations and institutions together to a much higher degree than we see.
Overall, the various aspects of the international system have enabled the expansion of global economic integration. Regimes, institutions, and regional interests bring nations together to meet common objectives. As rational actors, nations sometimes impede global integration, be it over a domestic issue or a transnational one. No aspect of the current international system, however, specifically impedes global economic integration. Only when a nation takes itself out of the international system, as has occurred in North Korea, Cuba, Zimbabwe and a handful of other countries, does economic integration become fully impeded. Therefore we can reasonably conclude that the international system, on balance and with a modicum of cooperation on the…...

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Works Cited

Goldstein, Judith; Rivers, Douglas & Tomz, Michael. (2003). How does the Trade Regime Affect International Trade? Stanford University. Retrieved December 21, 2008 at  http://www.allacademic.com//meta/p_mla_apa_research_citation/0/6/4/3/7/pages64379/p64379-1.php 

Wayne, E. Anthony. (2004). NAFTA: Ten Years After. U.S. Department of State. Retrieved December 21, 2008 at  http://www.state.gov/e/eeb/rls/rm/31645.htm 

No author. (2003). Trade Reforms and Food Security: Conceptualizing the Linkages United Nations. Retrieved December 21, 2008 at http://www.fao.org/docrep/005/y4671e/y4671e00.htm#Contents

Capdevila, Gustavo. (2008). The Death of Doha. Asia Times. Retrieved December 21, 2008 at http://www.atimes.com/atimes/Global_Economy/JG31Dj02.html

States like Bangladesh, Egypt, and Indonesia have severe challenges due to the risks of flooding, drought, and deforestation. Recently Bangladesh was hit by a powerful Typhoon (same as a hurricane), which caused thousands of deaths and was so severe it was beyond the capability of its weak government to deal with the disaster.
The U.S. Department of State (DOS) has been working for many years to try and help with a solution for the Israeli-Palestinian Conflict. The violence between these two states has been going on for many years, and numerous previous attempts to find a lasting peaceful solution have failed. In a document called "A Performance-Based roadmap to a Permanent Two-State Solution to the Israeli-Palestinian Conflict," the DOS plan includes three phases. The first is the most crucial and pivotal - an end to the "terror and violence" and an attempt to normalize Palestinian life - in conjunction with…...

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Works Cited

Textbook Chapter 8 "Post-War Reconstruction."

Dixon, Robyn. (2007, Dec. 15). Zimbabwe may shatter, but Mugabe holds firm. The Los

Angeles Times, p. a-1 - a-5.

Foreign Policy. (2007). Failed States Index 2007. The Fund for Peace and Carnegie

For instance, McDonald's has a solid partnership with Starbucks that came as a natural solution to the increased consumption of coffee in its restaurants. Starbucks happens to be the world's leading specialty coffee retailer with a worldwide presence that matches that of the fast food producer.
4.

Other factors affecting decision

Vietnam is an Asian country with strong oriental cooking habits, which might not be very compatible with McDonald's typical menu of cheeseburgers and fries with a Coke on the side. Furthermore, the local food seems to be relatively healthy, which again is not something that cam be said by McDonald's food.

In 1990s, the company tried to enter this market, but didn't due to the lack of suitable business partners. A few years later, KFC and Lotteria entered the market and consolidated their position. Therefore, at this point the restaurant chain would need a couple of strong breakthrough strategies to be able…...

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Reference list:

IMF -- International Monetary Fund, accessed June 09, World Economic Outlook - Vietnam.

Ministry of Foreign Affairs, accessed June 09, http://www.mofa.gov.vn/en/cs_doingoai/

Ministry of Planning and Investment:  http://fia.mpi.gov.vn/ 

Thuy, L.T. 2005. Technological Spillovers from Foreign Direct Investment: the Case of Vietnam. University of Tokyo, www.e.u-tokyo.ac.jp