Trade: Goals and Policies

How can Forex affect international business?

The different foreign exchange rates of different countries extremely affect the international business. Mainly because it is driven by the supply and demands of products within the country or from other countries. If one country has a higher value of money for example the USA and it will export their product to the Philippines then the value of their product will increase in our country that is why brands from this country are selling their products to us. The economy of the country and its government are also factor why there are changes in the rate of foreign exchange. If a government wants to stabilize the value of their money, they sometimes block the out flow of cash from their country. This means that they may not sell their products internationally and it will affect the international market.

Differentiate trade blocs and trade policies

Trade policies are rules and regulations that maintains the importation and exportation activities of a country. These policies are developed and implemented by the government, and every country has its own policies. And there are laws that are related to the said policies. It focused on achieving more outward oriented trade regime and increased the access for exports and imports. While, trade blocs refer to group of countries that are helping each other to achieve a more active international market. These countries are actually geographically close with each other such as the ASEAN countries where we belong. These blocs have its own liberal rules that are different from non-member countries. And they have the same trade policies, so that it will be easier to sell and buy product within the bloc. Its purpose is to promote business, trade and exchange beyond national boundary.

What is the goal of trade blocs?

The goal of trade bloc is to increase trade between the close countries. It is beneficial of each of them. It also reduces the barrier between the member countries. Its objective is also to expand the market and economic integration. The growth and development of the bloc or the region is also one of its goals. This enhances the welfare of the consumers internationally and not only focused to one country. And of course, it promotes a higher employment rate that helps not only to the people but to the economy.