Chapter
33
International
Finance
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
33­1
Chapter
Objectives
Financing
international
trade
The
balance
of
payments
Exchange
rate
systems
Globalization
of
the
U.S.
dollar
Growing
foreign
ownership
of
American
assets
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
33­2
The
Mechanics
of
International
Finance
International
trade
and
finance
are
an
extension
of
our
nation’s
economic
activities
beyond
our
borders
The
balance
of
payments
includes
the
“balance
of
trade”
which
has
been
negative
since
the
mid­1970s
along
with
investment
income,
transfers
of
funds
abroad,
and
capital
inflows
and
outflows
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
33­3