Exercise Questions page 145 1-4
•When entering a foreign country and selling in that environment and different
economical industry you have to be aware of the constant changes in currency
values in the given country where you conduct your business. When entering a
country’s businesses have separate departments to handle international transactions
and follow the exchange rates, values to reduce profit losses. When the country
starts to loose from the value of its currency it is bad for the businesses as it is more
expensive to import in anything or export out the products from the country, not to
mention it causes the whole production chain to increase its prices, making harm to
the economy. The business owner should decide on where to take cut backs, mainly
they start to hold back on outstanding notes in the country, or to hire freelance
workers not full time employees, they tend to hold back export and imports and not
producing more products if the economy gets into deeper crisis and inflation goes
even worse to save what they have left.
•The concept of balance is all the transactions between the countries residents and
its nonresidents that involve goods, services and income, financial claims on and
liabilities around the world, as well as girts. These transactions are put into two
accounts the current accounts and the capital accounts. International accounts are