BUS 082 Lecture Notes - Lecture 7: Efficiency Ratio, Transparency International, Customs Union

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: gradin

Document Summary

Balance of trade: the difference between a nation"s exports and imports. Balance of payments: the overall money flows into or out of a country. Balance-of-payments surplus = more money into a country than out of it. Balance-of-payments deficit = more money out of a country than into it. Currency rates are influenced by: domestic economic and political conditions, central bank intervention, balance-of-payments position, speculation over future currency values. Values fluctuate, or float, depending on supply and demand. National governments can deliberately influence exchange rates. Business transactions are usually conducted in the currency of the region where they happen. Rates can quickly create or wipe out competitive advantages. Potential problems include mistranslation, inappropriate messaging, lack of understanding of local customs, and differences in taste. Differing values about business efficiency, employment levels, importance of regional differences, and religious practices, holidays, and values about issues such as interest- bearing loans. The basic systems of a country"s communication, transportation, and energy facilities.