Currency trading for dummies-INTERNATIONAL

Currency trading for dummies-INTERNATIONAL

Currency trading for dummies the current and future economy is towards international trade with growth that goes on increasing development, the commercial Treaty with the new country should adjust its strategy to get the most out of exchange of goods and services.

Introduction to international finance



“Globalization is an economic, technological, social and cultural process to planetary scale which consists of increasing communication and interdependence between the different countries of the world unifying its markets, societies and cultures, through a series of social, economic and political transformations that give them a global.

Globalization is often identified as a dynamic process mainly produced by living under democratic capitalism or liberal democracy, and societies that have opened their doors to the information revolution, folding to a considerable level of liberalization and democratization in its political culture, in its national legal and economic system, and in its international relations.”

A couple of months ago it was the birthday of a loving friend of basketball. We think give the garment must of last summer: a basket of NBA Jersey. Like everyone we are students or live music (haha), the budget was limitadito, by which we decided to purchase it from a Chinese website that sells replica perfect amount of sportswear brand, is clear, Chuck price.

So from the Ejido bought a t-shirt from a team of basketball of Chicago, that has been made by Chinese, and that paid in dollars with a difference of price approximately a 70% more cheap (costs of shipping included).

Well folks, this is globalization. We are more or less in agreement with her, I think it is an inevitable phenomenon, driven by physical and virtual interconnect that connects to virtually all the world’s people.

Immersed completely in a Pareto model, we know that which I enjoy something so cheap here, reveals very low cost that will be its production in China, so I don’t want to even imagine that salary will have that little man that is manufactured there. By no means a good distribution of the right to work, unfortunately.

On the other hand, you could not imagine a less interconnected world. Even my grandmother, of eighty years, who lives in a village of 70 people where Dios pulled the chancla, is already accustomed to always carry your cell phone above, normalizing other thousand situations that have you and that fifty years ago she not could have imagined by no means: photos of himself on the internet! My video about Thailand five people have seen him in Turkey!!

It be conscious of all this me makes have thousand questions about to what limits will come the globalization in all them aspects: cultural, economic… As this post goes on international financing, we are going to start with the economic ones, with a simple base: the international movement of those so cool badges that I pay the camisetillas online.

A currency, for those who don’t know, is any means of legal payment in a currency that is different from ours. There is a worldwide currency mercadona 24 hours (the main currency markets are in Tokyo, London and New York), in which buyers and sellers they agree to buy or sell at a certain price, but what factors are involved in that price?

All foreign exchange markets exhibit the same features:

-They are effective markets, in which the information is transmitted in time real.

-Are governed by the law of one price, giving homogeneity to the merchandise that is negotiated.

-Is, fundamentally, a perfect and transparent market which means that there are a many buyers and sellers.

The currency markets are used to finance international transactions and also to help ensure there is no risk during the operation, such as changes in interest rates that could cause falls in the price of the currency that we have bought in the time between that we buy and do effective operation (can buy currency in cash or do so within a period of time longer than two days We’ll call type forward, and that in the majority of cases it will be higher or lower than the purchase in cash).

Exchange rate that applies to one currency speaks much of that country’s economy, and the economy will determine the exchange rate applied to its currency. Later we will see the factors that make a currency worth more or less.

We will consider therefore that the value of the exchange rate is not fixed, produces effects over it all you will sound: appreciations or depreciations, when supply and demand forces that the currency in question are worth more or less,This means that today, for € 1 we will give 1′ $35, i.e., the dollar is worth less than the euro. If, for example, tomorrow give us 0′ $95 for €1, we would have otherwise, the euro would have depreciated against the dollar, since the dollar would be worth more.

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