WORLD TRADE, EXCHANGE RATE & INVESTMENT PATTERN

World Trade, Exchange Rate & Investment Pattern

World Trade, Exchange Rate & Investment Pattern

In the previous two decades, lots of multi-national organisations have suffered numerous crises which have greatly affected public interests. The analysis on the structure & shape of the world economy creates an awareness of the presence of different groups & every one of them having different perspectives. The economic models, the ideas & mechanisms of communication were so irrelevant which no similarities were found. (Kaplinsky 2008 197)

The trend of globalization of the various financial markets creates a need of the comparison of the information in the annual reports of the organisations. However, due to the presence of various international norms, the investors are sometimes unable to carefully analyze & make the comparison of the organisations' financial situation, taking the finest decision & developing international financial transactions. This is the fact which U.K. organisations provides more information about its activities as compare to the UK organisations which makes certain information confidential. The barriers to world business activities have now greatly reduced & yet few markets which are local have acquired their position in the international market. The famous multi-national European organisations have yet faced the same situation. When the combination of national markets creates a competitive environment & new strategies are yet prepared to maintain the competitive position in the market. If business activities are spread on geographical basis, firms are then able to achieve economies of scale. (Dunning 2007 30)

When the combination of regional markets takes place, it establishes a strong position not only in the overall region for example like EU which has not only made them regionally strong but their impact is in the international market. The barriers to trade are yet removed due to the integration of various markets. EU (European Union) has made significant progress in creating a single market environment. The European Union creates own budget in order to account for the transactions which takes place in the domestic market & international market as well. (James 2008 12)

The currency which is adopted by the EU is Euro & it's one of the strongest currencies of the world. Before the adoption of this currency, the trade between European states was not which easy & various problems yet use to occur as a result. The European Union is a strong institution which brings together around 27 member states. The EU has played a significant role for the development & building of major projects at European scale but it has yet encouraged alternative developments at, national, regional & local scales, & the example is the funding & investment of projects which bring organizations in several member states together. Since few years, the EU has yet encouraged new member states, some of them in the former eastern bloc like Poland & Czechoslovakia. (Kaplinsky 2008 197)

Their huge ambitious and large program is possible with the help from political & diplomatic sources. The Single market option helps EU considerably due to ...