What is Global Finance?
This chapter introduces five basic concepts in global finance and examines the role of international business.
» Macroeconomics
» The theory of comparative advantage
» Growth
» Types of economic system
» Ways of classifying economies
» International business.
"every individual ... endeavors as much as he can ... to direct
... industry so that its produce may be of the greatest value ...
He intends only his own gain, and he is in this, as in many other
cases, led by an invisible hand to promote an end that was no part
of his intention ... . By pursuing his own interest he frequently
promotes that of society more effectually than when he really
intends to promote it".
Adam Smith
In this chapter we will look at some commonly used ideas in macro- economics and international business.
MACROECONOMICS
Macroeconomics is the study of whole economies, as opposed to
"microeconomics", which looks at how individual industries, households,
and businesses function. While macroeconomics is a vital
concern of governments, it is also essential to businesses, especially
those with operations overseas.
Macroeconomic concerns, such
as currency exchange, inflation, unemployment levels, economic
development, and international trade, are a major element in success-
fully managing operations in a complex and ever-changing environment.
The continuation/full version of this article read on site www.bob-expo.com - Global Finance
