Important Aspects of Global Business in Relation to International Trade and Foreign Exchange - Research Paper Example

According to the article, the US possesses inclusive free-trade agreements with nearly 17 nations comprising both Canada as well as Mexico. The article emphasized that the different service providers that encompass law, as well as bank firms, reap maximum benefits from the idea of international trade of the US with other various nations (The New York Times Company, 2013). The governmental interventions in global business provide significant implications upon different significant aspects that include employment and inflation among others.

From the viewpoint of the aspect of employment, governments influence global business by encouraging the business procedures of different organizations as well as by generating ample job opportunities. About inflation, governments influence global business by ensuring that there does not lay any sudden rises, especially in the prices of products (The New York Times Company, 2013). . to combat particular corruption, terrorism, and different cross-border criminal activities like drug smuggling (The Washington Post, 2013). 2. Important aspects of Global Business about Foreign Exchange and Rates Foreign exchange rates are fundamentally regarded as an imperative determinant in the business activity of any nation in the global context.

It can broadly be stated with foreign exchange rates, a nation can conduct its business transactions nationally as well as internationally by a considerable level. The major significance of foreign exchange rates is that the exchange rates extensively enhance the trade level of a particular nation. Numerous factors influence foreign exchange rates to a significant degree. In this connection, the factors comprise dissimilarities in the interest charges, public debt, and financial performance among others.

By the reports of a recently published article, it has been viewed that Egypt adopts the latest system by which they can purchase as well as sell foreign currencies. The prime objective of the nation i.e. Egypt to introduce a new system of transacting foreign currencies is to provide active support, particularly to the finance-related policymakers while facing problems linked with foreign-exchange reserves. The country strongly believed that by introduced such a system it can safeguard the reputation of Egypt as a business nation in financial international markets (The Wall Street Journal, 2013).