International Financial Organizations Essay

5115 words - 20 pages

The countries of China and Japan are key members of the dynamic international business community since each country significantly contributes to the global economy and to their own regional competitive environments. Each benefits from the theory of comparative advantage based upon their trading positions; both China and Japan have developed leadership roles in the foreign exchange market; each of these great nations continues to evolve their trade policies with vision and foresight, and over the last 20 years have significantly reduced their regional trade barriers in the face of strong domestic resistance; and finally both China and Japan have contributed and resolutely deployed themselves as integral to international financial organizations. China and Japan each contain natural resources and finished goods that could be traded with one another based on the theory of comparative advantage since "both countries will gain from trade even if one is more efficient in all goods" (Shenkar & Luo, 2004, p. 18). Each country is significantly entrenched in the foreign exchange market. The foreign exchange market is the "physical as well as institutional structures through which currencies are exchanged, exchange rates are determined, and foreign exchange transactions completed" (Daniels, Radebaugh, & Sullivan, 2004). Although trade specifically between China and Japan is somewhat restricted, both countries utilize the foreign exchange market to facilitate trade with the rest of the world. Understanding the relative strengths and weaknesses of Chinese and Japanese currency as a function of trade between each nation; and China and Japan's participation in global trade with other countries includes an interpretation of the foreign exchange market's role in influencing each countries strategic policy. Accordingly, governmental guidance has included subsidies, protection for favored industries (i.e., trade barriers), and restrictions on capital flows, policies generally opposed by the leading proponents of free trade. In many respects, the path of trade liberalization currently promoted by the World Bank and others can be seen as directly opposed to the development strategies that have proven most successful in the post-war period. "A reduction in world barriers to trade could accelerate growth, provide stimulus to new forms of productivity-enhancing specialization, and lead to a more rapid pace of job creation and poverty reduction around the world" (World Bank, 2002, p xi).Comparative AdvantagesBy capitalizing on the comparative advantage afforded to Japan by their highly educated workforce, Japan has been able to compete and trade with China in the global markets. This has proved to be a boon for both economies and will continue to be so even as their economies naturally shift in the future. Due to the respective comparative advantages that each country enjoys, trading has been, and will continue to be, beneficial to both countries and their...

Find Another Essay On International Financial Organizations

Regulatory Bodies Essay

831 words - 3 pages In today's large corporate world businesses are being regulated by regulatory bodies due to unethical activities found in the past with large corporations and their financial officers. Agencies such as, the U.S. Securities and Exchange Commission, Public Company Accounting Oversight Board (PCAOB), the Financial Standards Accounting Board (FASB), the International Accounting Standards Board (IASB), and the General Accepted Accounting Principles

International Law Essay

2387 words - 10 pages International law is basically the rules and principles which controls and governs the trade relations within different nations around the globe. The international law can be specifically defined as the relation between individuals and states, and relation between different organizations operating on a global level. Basically there are two kinds of laws governing the international trade scene namely: public international laws and private

The IMF’s Role in Financial Crisis

2606 words - 10 pages , provides many countries that experienced financial crisis advices to restructure the financial institutions. The IMF’s Structure As an international monetary organization, the IMF is a central actor in the international financial system. The governance structure about the IMF is not the same as other organizations. The IMF’s governance structure is divided in different kind of sections which are in charge of various kinds of fields, such as

International Financial Management: BHP

1862 words - 8 pages Surname PAGE \* MERGEFORMAT 1 International Financial ManagementIntroductionThe management of a business organization is mandated with the responsibility of ensuring that the business organization adopts the necessary management practices in order to achieve increased performance. In the cause of business activities, business organizations come across different risks including financial risks. The financial risks in a business organization are

The United Nations Is the Answer To The Worlds Problems

626 words - 3 pages of many organizations provided by the United Nations to assist the people of the world. Another organization that helps countries to strengthen their economy is the International Monetary Fund. The International Monetary Fund came into official existence on December 27, 1945, when 29 countries signed its Articles of Agreement at a conference held in New Hampshire. It now contains 183 member countries. The International Monetary Fund was

Types of Aid

591 words - 2 pages : Emergency aid (also known as Humanitarian aid) is assistance given to people in distress by individuals, organizations, or governments to relieve suffering. The term often carries an international connotation, but this is not always the case. Many full time, professional emergency aid organizations exist, both within government (USAID, DFID, ECHO), and as private voluntary organizations (or non-governmental organizations, e.g. Oxfam, Mercy

The Rise of Criminal Organizations in Globalized Era

1479 words - 6 pages trafficking, a venue for money laundering or illicit financial transactions, exploitation of its citizens or a base of operations for criminal organizations with global networks.11. International Crime Threat Assessment http://www.fas.org/irp/threat/pub45270index.htmlTwo key factors have triggered the rise in international criminal activity in the last twenty years. The first is globalization - the liberalization of financial and commodity markets that

International Life

1231 words - 5 pages functions of nongovernmental organizations are likely to increase and the roles of sovereign states and intergovernmental organizations will be forced to drastically transform. Within the context of regime theory, it can be concluded that non-governmental organizations, intergovernmental organizations, and transnational corporations will be highly relevant in the near future, replacing the roles of states in the form of international

The Strategic Risks and Financial Strategy of International Market Expansion

1486 words - 6 pages the euro and the dollar changes from a daily basis. The strategic risks and financial strategy to consider for possible expansion is advanced international markets increase Mars, Inc. sales and products in existing markets is the easiest and most risk-free approach towards expanding. The role played by currency speculators, particularly, should not be underestimated, as it exerts significant influence on the market. In addition, foreign

International accounting standard

1940 words - 8 pages International Accounting Standards(IASs) were issued by the International Accounting standard commission (IASC) from 1973 to 2000.The International Accounting Standard Board (IASB) replaced the IASC in setting standards on 1 April 2001.The IASB has an advisory council and an international financial reporting interpretations committee. The foundation trustees appoint the IASB members, exercise oversight and raise the funds but the IASB has sole

Retrospect of Random

659 words - 3 pages its role in setting standards will change, it will continue its vital role of influencing the future directions of financial reporting standards to ensure that the Canadian point of view is continually and strongly represented. International Financial Reporting Standards (IFRS) will replace Canadian GAAP for all Canadian Publicly Accountable Enterprises (PAEs). PAEs include listed companies and any other organizations that are responsible to

Similar Essays

Funding For Non Profit Making Organisations

628 words - 3 pages by NSNVO indicates that competition with other organizations for financial aid was their main hindrance. 12% of the respondents also argued that the problem had serious implications upon them. Competition was cited to be a major problem by learning institutions at 67% and health organizations at 61%. Cultural organizations and international organizations also felt competition was a problem at 59% and 58% consecutively. According to a national

Human Rights In Latin America And International Factors

1058 words - 5 pages The current century has witnessed immense improvement and re-conceptualization of standards and sovereignty of human rights in Latin America. With the endemic repression and violations of human rights throughout Latin American in the mid to late 20th century, the International human rights regime, an amalgam of international and intergovernmental organizations and bodies, expanded exponentially. By conducting investigations within certain

International Financial Management Essay

717 words - 3 pages (Bekaert & Hodrick, 2012). What is more, the technique that international organizations track to handle their financial situation varies from companies smaller in size compared to them. Also, techniques of fund management similarly vary amongst several worldwide organizations themselves. The main influences, which corporations must allow for as working with the fund is that their company covers through several nations in the past; Dissimilar

Regulation Of Financial Misconduct Essay

1400 words - 6 pages financial misconduct and its detrimental effect, Sarbanes-Oxley Act was enacted in 2002. The genesis of this law can be traced back to a period between years 2000 and 2002 when United States was marred with a perverted upsurge in corporate accounting scandals that tainted the United States securities market and led to loss of public funds invested in listed companies. Scandals of organizations like Adelphia, Peregrine Systems, Tyco International, and