CHAPTER 11

International Financial Environment

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

  • Identify the characteristics of the international financial system
  • Explain the functioning of the foreign exchange market
  • Distinguish between foreign exchange risk and foreign exchange exposure
  • Discuss the structure and functions of the international capital market

VENEZUELA’S EXPERIMENTS WITH THE BOLIVAR

Venezuela is synonymous with economic crisis. The economy has shrunk by about a third in the past five years and the IMF expects GDP to contract by 15 per cent in the current year. Challenged by US sanctions and struggling to meet its obligations to international bondholders has led the country to continuous experiments ...

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