3: Know how international business is financially supported

International monetary environment: 

• Foreign exchange system; 
• The European Monetary System (EMS); 
• Balance of payments; 
• International money markets; 
• International banking; 
• Trade credit; 
• Letters of credit; 
• Export Credit Guarantees; 
• Forfeiting; 
• Factoring; 
• Bills of lading; 
• International debt;  Countries by debt
• International Banking Facility
• Methods of protection against exchange rate fluctuations
• Monetary and Fiscal Policy. 

Trade support: 

• Government agencies;
• Trade associations; 
• Insurance; 
• Legal issues.

Assignment 3 - due for submission 26th March 2015

Task 3.1: P.4

Describe how the monetary environment affects businesses that operate internationally.

In particular, the learner need to write a letter to Mr Juntao about how:

• Explain what is meant by exchange rate and monetary policy?
• Explain three ways in which changes in the exchange rate can impact Juntao?
• Explain measures that Juntao can take to reduce the impact of fluctuations in exchange rates and monetary policies.

This task is to be submitted by 26th March 2015

This task provides evidence for P4