Question

In: Economics

Why do companies enter in foreign markets? Name and describe three theories of why nations trade...

Why do companies enter in foreign markets? Name and describe three theories of why nations trade in goods and services. Explain the role each play in the purchase, sale, and exchange of goods and services across national borders. Discuss the importance of the international monetary system and the balance of payments for international trading.

Solutions

Expert Solution

Now a days most of the companies like to enter into foreign markets to have a better expansion of their business it will automatically lead to have more opportunities to have better range of investments in their business actually most of the development of our country depends upon the trade which will lead to have more purchases ,sale and exchange of goods because the GDP growth and the financial status of our country is majorly depends upon this activity only . International monetary system plays a key role in enhancing the better implementation of govt policies in order to reach the poor people by providing better policies to them. And it acts backbone to expand the growth of our nation mainly. The balance of payments gives the actual gives the actual payments which are using for trade it will guide us to how far our funds or money is utilising them to get better expansion of business and in which way the funds are better utilising in order to enhance the trade all over the country to get better results. And it will automatically lead to growth and power development of our country.


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