Topic: Currency relations, balance of payments and its deficit. International trade



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Topic: Currency relations, balance of payments and its deficit. International trade

  • Currency. International monetary system
  • Transnational companies
  • Balance of payments
  • Offshores

Currency

  • refers to a particular authorized monetary system, monetized in specific units (euros, dollars, pesos, ets.) which may be given international value by their exchange values in foreign exchange.
  • Each currency typically has a main currency unit (the dollar, for example, or the euro) and a fractional unit, often defined as 1/100 of the main unit: 100 cents=1 dollar. Although units of 1/1000 occasionally also occur. Some currencies do not have any smaller units at all, such as the Icelandic krona.

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