Reasons why outsourcing and global production exists

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…

Tips on how to refinance your mortgage

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 and trade restrictions

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…

Ford, Honda and global economy of scale

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….

International mergers

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…

Importance of organizational structure for business

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…

Components of International Finances

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…

International markets for commodities and currencies

When transportation costs are low and government don’t restrict international transactions companies are looking for opportunity to sell goods on foreign market. 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….

Problems and factors of globalization

Globalization describes a process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. It’s the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization – strengthen the interdependence…

What’s in a PITI payment?

When escrow is used, a monthly mortgage payment is called a PITI payment. That’s because each one covers a portion of the following four costs: Principal — the loan balance Interest — interest owed on that balance Real estate Taxes — taxes assessed by different government agencies to pay for…