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INTERNATIONAL FINANCE
International finance is concerned with the mobility of financial capital across the countries, and the problems and opportunities this mobility presents the individual countries. It would not be too inaccurate in present day context to say that while the international trade deals with the current account and international finance deals with the capital account of the BOPs. The issues like the choice of exchange rate regime and of the modern-day balance of the payments crises also fall firmly within the purview of the international finance.
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Q. Explain the purpose of the given figure? Answer: To demonstrate that spot and forward exchange rates are in general close to each other.
WHY IS INTERNATIONAL TRADE IMPORTANT FOR SOUTH AFRICA
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