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Comparison Of Two Systems Essay

909 words - 4 pages

Comparison of Two Systems

In order to discuss the different types of foreign exchange systems, we first have to note the five main currencies that are used in currency trading. The world’s main currency is the US dollar. Generally all currencies are quoted in those terms. In second place would be the Euro, The third most traded currency is the Japanese Yen, although the yen is very liquid around the world it does have a much smaller presence internationally than the US dollar or the euro. Fourth place goes to British pound followed by the Swiss franc. (Lanval 2009).
Currency risk is an important consideration because exchange rates are unpredictable, majority of companies buy foreign ...view middle of the document...

Basically global marketing is selling one product all over the world (like an iPod) and international marketing is adapting your product, to sell all over the world (like a Big Mac). (witiger.com)
One of the most lucrative markets with high returns on investment would be the foreign exchange market, also known as Forex. There are many advantages to Forex, from easy access 24 hours a day, low transaction costs, no middleman, high liquidity market and many others. As with everything if there are advantages there are also disadvantages. Some of the disadvantages with Forex are the risk of choosing an inexperienced broker, differences between wholesale and retail prices, requires knowledge and time and many more. (Forexman).
There are a variety of advantages and disadvantages with getting tomatoes from Mexico, as an example the tomatoes grown in Queretaro Mexico they have a disadvantage of higher costs to ship their greenhouse tomatoes to the US border, yet at the same time they are in a great position to meet the increasing demand to provide tomatoes to the supermarket sector which may become increasingly valuable as the US market becomes saturated. There is also an advantage to the newer greenhouses in that they dramatically reduce the number of workers that are needed for a given level of output but that is offset by the growers investing in a greater amount of worker training relative to the open field growers. (AMPHI)
In 2010, the top five exporters of tomatoes and mean price/kg (in USD) were as follows:
Mexico $1.06, Morocco $0.73, Turkey $ 0.83, USA $1.67 and Canada $2.14 (UNCTAD.org)
When we look at getting our tomatoes from Mexico, all tomatoes that are imported into the United States have to be inspected and meet minimum size and grade...

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