"As much as trade is important in understanding globalization, the flows of money and capital are just as important. Before you can have trade between nations, you have to exchange rates for currencies between them. Since we use money, you have to be able to figure out what the value of your money is in another country, or the value in that country's currency".
I agree strongly with this quote and find it very interesting. I few years ago I created a small business or trade of my own to support myself and pay for my education. The business involved purchasing goods here in the US and selling them in the Caribbean.Before getting involve and establishing the business I had to first decide the currency value between the US dollar and EC dollar. I saw it profitable and possible to establish the business because of three important reasons. First the exchange rate of $1 US equal $2.68 EC,second the huge demand for my goods in Caribbean and thirdly the ability to convert or exchange one currency to another or the ability of having a tool or mechanism to allow trade or business between the united states and the Caribbean. In conclusion I say this to show that I understand or have some knowledge or idea of how trade can be operated between countries or on a global level.
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