Question

2.(a) Mark X if True     ____ Exchange Rate is the # of units of one country’s currency you need to buy one unit of another country’s currency.               _____ FX Rate can impact a nation’s international trade since it affects I/B pricing/profit.         _____FX also impacts a country’s wealth and its ability to trade internationally and build its BOP .                                                                (b) The world’s largest FX Markets are:                                                                                                          (1) __________                          (2) ______________                                                                      (3)__________                           (4) ______________                                  

3.

1. Mark X if True.   The following efinitions match International Business (I/B):    _______Business involving Exporting & Importing of goods, Services, Ideas, and Money    _______All business transactions involving foreigners who live outside of their country.     _______Globalization & international business are the same, dealing with at least 2 countries.        _______The U.S. is the world’s largest economy and largest exporter & Importer nation   _______ I/B is business transactions with many foreign countries.

Answer 1

2(a) Answer

X True

Yes,exchange rate is the number of units of one country's currency you need to buy one unit of another country's currency.In other words we can define exchange rate as the price of one currency in terms of another currency.

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X True

Yes, it is true that FX rate can impact a nation's international trade .The exchange rate plays a vital role in the international trade of any country. A weaker domestic currency stimulates exports and makes imports more expensive and vice-versa a strong domestic currency hampers exports and makes imports more cheaper.

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X True

Yes, it is true that FX also impacts a country's wealth and it's ability to trade internationally because the increase or decrease in th value of one currency has an impact on its exports and imports which inturn affects it's performance in the international markets.

2(b) Answer

The world's largest FX markets are:

1.United Kingdom:UK is one of the largest FX markets with London as its financial center and has the largest percentage of trading volume of any geographical location.Its average daily trading volume is $1.854 billion with 37% of daily global Forex volume.

2.United States:After UK next come the Unites states as the second largest FX markets with New York as its financial capital.Its average daily trading volume is $904 billion with 18% share of daily global Forex volume.

3.Japan:Japan is the third largest FX markets with Tokyo as its financial capital.Its average daily trading volume is $312 billion with 6% share of daily global Forex volume.

4.Singapore: Singapore is the fourth largest FX markets with Singapore as its financial capital.Its average daily trading volume is $ 266 billion with 5% share of daily global Forex volume.

3 Answer

X True

Yes business involving transportation of goods ,services,ideas, and money is known as International business.It is the cross border transaction of goods and services between two or more countries.

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X True

Yes, International business include all business transactions involving foreigners living outside of their country because here trade involve movement of goods and services to foreign markets in which FX takes place with foreigners.

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False

No, globalisation and International business are not one and the same. Globalisation can be defined as the growing interdependence of the world's different economies,cultures and population.It also involves the movement of cultural practices.Where as International business involving only commercial activities by movement of goods and services.

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False

NO, US is not the largest exporter and importer nation. As of the latest information of provided in the below link

https://en.wikipedia.org/wiki/List_of_countries_by_exports

https://en.wikipedia.org/wiki/List_of_countries_by_imports

US is in the first position as the largest importer and it is in the third position as the third largest exporter.

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X True

Yes, International business includes business transactions with many foreign countries.Since country entering into international business exports and imports goods to different countries.Therefore it will be dealing with different commmercial transactions of various countries.