Global Financial Management Unit 1 DB response to peers

Latoya Davis

Part One 

In reviewing the Terminal courses objectives, such as Foreign Exchange Risk, International Monetary Systems, capital budgeting, and Adjustment Risk, I must admit that I am unaware of the information that would make for successful management.  I suppose the many risks or challenges managers may face if not privy to the things that come along with Global Financial Management are the inability to make financial decisions and navigate the challenges of the global economy.  

Part Two

My understanding of WTO and G8 (only because I recently researched) is that the World Trade Organization deals with the rules of trade between nations. Founded in January 1995, this organization mainly deals with goods and services trade and is the largest reform of international trade (World Trade, Organization, 2022).  In the Group of Eight (G8), eight highly industrialized nations meet annually to foster consensus on global issues such as economic growth, crisis management, global security, energy, and terrorism. They include France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia (Laub, 2014). I'm learning that both the WTO and G8 ensure a smooth, predictable, and free flow of trade. However, that's just half of the story. It has long been known that the WTO is unfair to poor countries' governments and favors rich nations.

Part Three

Now than ever, it's imperative to understand the international monetary system because every day creates an opportunity for the business world to expand outside of a restricted segment. Without a thorough understanding of the rules, insistences that facilitate international trade, and general differences between nations' currencies, global business is not possible.

 

Reference

Laub, Z. (2014). The Group of Eight (G8) Industrialized Nations. [online] Council on Foreign Relations. Available at: https://www.cfr.org/backgrounder/group-eight-g8-industrialized-nations#:~:text=The%20Group%20of%20Eight%20(G8)%20refers%20to%20the%20group%20of [Accessed 22 Feb. 2023].

World trade organization (2022). World Trade Organization - Global trade. [online] Wto.org. Available at:  https://www.wto.org/.