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Nations trade with one another because they expect to benefit from the transaction. Trade enables them to exchange things they don’t need for the things they do need. Some areas produce things that others cannot. It is caused by the different types of climate and soil. Manufacturing also can be…
This all depends on your situation. However, there are some scenarios where the choice is apparent. For instance, let’s say you need $15,000 to pay for your daughter’s wedding next month and $5,000 to fix your roof next week. In this scenario you know exactly how much money you need…
Foreign markets can be very attractive to a business looking for new customers, especially when its home market is becoming saturated. Such an expansion, however, needs to be thoroughly researched and carefully planned to ensure that the timing is right. To begin with, a business needs to have successful products…
Global companies place production facilities when costs are lowest. But for some companies costs are only a small part of the production picture. Countries along the world have increased the number of trade barriers, but in another hand market in Asia and Eastern Europe have opened for foreign investment. This…
There are many reasons that you would consider to refinance your mortgage. The most common is a rate in term refinance where you are trying to lower the monthly payment of your mortgage, by reducing your interest rate. You can also refinance to consolidate debt, pay off a car, take…
International trade is based on the process of importing and exporting goods. Every good exported by one country must be imported by another. International trade increases total output. On a global economy imports must equal exports. The trade balance is the difference between exports and imports. When goods are imported…
Rising costs and different tastes in car styling made the industry giants to use the global economy of scale. But companies like Ford and Honda chose different ways of development. Ford is one of the world’s earliest multinationals. Its first foreign production unit was set up in 1904 in Canada….
The merger wave, which in 1998 was in USA, now came into the Europe. Cross-border deals are expected as firms go global. In many cases this consolidation makes sense. But past merger waves have shown that only one deal of three has worked. Success depends on what will happen after…
There is absolutely fundamental need in company for a solid structure. Organizational structure concerns who reports to whom in the company and how elements are grouped together. A new company cannot go forward with out this. There are several organizational structures companies can choose from. The most popular structure is…
International trade is impossible without foreign exchange markets. Exchange rate is the price of one currency in terms of another. Depreciation is the fact when one currency has become cheaper in terms of another currency. The other side of depreciation is appreciation – when one currency increase the value. When…