International Trade and Money Market
International trade is a practice where people from different countries exchange goods and services that they may not behave in their states or, they have, but they are not sufficient. Because of this, therefore, we have almost all types of product available in the international market, we have an example of food, oil, jewelry, wine, stocks, clothes, spare parts, currencies, etc. Services may include baking, tourism, and transportation. Myszkowski, Paweł B(2010)
The international money market is a kind of trade where foreign currencies are transacted between different central banks from different countries. Mainly the transactions are carried using. Hence we have this as forex trade.
International trade currently is a very significant practice and also to the future to different people’s lives, personally, I appreciate it because of different reasons first it enables my country to dispose of its surplus products this will create income that can be used to lower living standards in my country, as time goes by different varieties are being availed in the international market this will enable me to and others to consume different varieties of products also raising living standards. Because of the competition experienced, every country strives to produce quality; this is an advantage to me as a consumer because I have a guarantee of quality products that might be produced either in my country or any other country hence increasing the quality of life. Mathur, N (2012)
According to Dicks, J. (2004) international trade International promotes cooperation among different countries where in my case my country is involved; friendship is created as there is a good atmosphere of goodwill among these trading countries these can enable the interaction of different people from different ethnic groups. In the future I see myself working in different countries where I can enjoy different adventures only because of the friendship created due to foreign exchange.
When we think about forex trade, we think about money different countries use different currencies, but we use a dollar for commonality during the business. Value of different currencies from different countries are determined using different aspects mostly the forces of demand and supply which vary across matters a lot .when we have more buyers than sellers of a certain currency, then its value goes up. People tend to buy certain currencies because the country is doing well and it’s economy. Therefore different countries struggle to improve their economy, in the future my country is therefore likely to have a favorable economy hence living standards will be affordable.
To conclude, foreign exchange or forex trade leads improvement of living standards of different countries. Predictably, shortly these countries that practice international trade will have moved into higher heights regarding economy and friendship I will, therefore, be receiving the best services in my own country.
Myszkowski, Paweł B., and Adam Biz. “Evolutionary algorithm in forex trade strategy generation.” Computer Science and Information Technology (IMCSIT), Proceedings of the 2010 International Multiconference on. IEEE, 2010.
Dicks, J. (2004). Forex made easy: 6 ways to trade the dollar. McGraw-Hill.
Mathur, N. “Changing dynamics of forex trade in India-OTC to currency derivatives.” Banking & Finance Digest 10 (2012)