I need help with the Final Project presentation. (The last part) I attached my previous presentations to it as well Milestones 1, 2, 3 and the interview research. Please help, and please cite all work that is being done, it needs to be in APA format. Thank you for your time.

FIN 336: Final Project Presentation Guidelines and Rubric For multinational businesses, transaction exposure can cause the devaluing of a contract due in a later time period and change the overall profit or loss of a project. Create a presentation to incorporate the knowledge gained and information presented in the previous research, interview, and milestones to explain how a company may break into global enterprise by gaining a new contract, whether the organizational structure and business objective play a part in the company's entrance to international trade, how transaction and other exposures play a part in the success or failure, types of domestic and international financing options for the business or project, and the changes or effects of the balance of payments and trade balance between the two countries and how each may cause fluctuations of interest rates, exchange rates, and the overall cost of the venture. Include an example of purchasing power parity, types of possible arbitrage, and how this company will decide if the potential profits are worth the risks. Keep in mind that this is your final project for this course. It should include all concepts covered in this course, extreme detail about historical trade between China and the United States, and your opinion of what the future may hold between these two countries. Utilize as many details as possible into this project, but do not copy the same information previously submitted in the course. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two, Four, and Five. The final submission will occur in Module Seven. The final presentation should be a minimum of 10-12 slides in Prezi, video, or other tool, including a title slide and reference slide. The APA style format must be used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. Course Outcomes In this assignment, you will demonstrate your mastery of the following course outcomes: Recognize the objectives, risks, and expansion opportunities of multinational corporations Analyze the tools used for direct and indirect intervention of the foreign exchange market in regard to fluctuating exchange rates Identify the use of a financial intermediary when utilizing forward contracts, cross exchange rates, swap rates, currency, Euro Credit, and Eurobonds Assess changes in exchange rates, the effect on an import-dependent country, and how they may be used as an adjustment tool Explain the difference between transaction and translation exposure Examine the effective interest rates effect when financing international trade (methods of payment, factoring, short-term bank loans, banker's acceptance, forfeiting, countertrade) Evaluate the cost of capital for multinational corporations and how costs may change or validate the selection of investment projects Milestones Milestone One: Balance of Trade This milestone is submitted in Module Two. Specifically address the following questions: Explain how trade balance, interest rates, and exchange rates are related, and cite an example of how a rise or fall in one changes the others. Does a deficit in China or the United States change the overall advantage or disadvantage of trade? Why? Explore how the cost and quantity of imports and exports, such as electronic equipment, may be challenged by the rise and fall of these rates. Incorporate the fluctuations of supply and demand into the costs incurred and decide ways management calculates estimations for further product needs. Explain the philosophy of \"international crowding out,\" citing an example of how this may occur, and describe how excessive borrowing in one country has affected interest rates in the United States. As an example, China and the United States \"borrow\" from each other to finance needs by purchasing government-backed securities from the other country. This practice provides one country with additional funds and also gives the purchasing country more control over interest rates or \"borrowing costs\" in the future. How does this influence interest rates in the domestic country and foreign country? Can one country gain control over another financially by continually financing another country's debt? This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the Milestone One Rubric. Milestone Two: Arbitrage This milestone is submitted in Module Four. The law of one price and purchasing power parity ensure that even though exchange rates may fluctuate, a consumer will pay the same price for an item or basket of goods no matter which currency is used in a particular country. At times, an individual or business will take advantage of exchange rates to gain more value or wealth from international trade; this is called arbitrage. Write a paper expanding the explanation of these two theories, utilizing and comparing goods purchased in China with yuan and those same goods purchased in the United States with dollars. Incorporate research to fully describe purchasing power parity and the law of one price. Provide an example and explanation of how the possibility of arbitrage may be related to both of these concepts. Explain the differences between covered interest arbitrage, intermarket arbitrage, and triangular arbitrage, and how the cycle of investments and cross rates played a part. What is your opinion of this type of arbitrage as it relates to foreign exchangeis this unethical behavior or merely an investment strategy? This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the Milestone Two Rubric. Milestone Three: Currency Market Intervention This milestone is submitted in Module Five. In this module, we are investigating why governments try to intervene in the currency market to keep values of their own currency low. This practice is used to promote the sale of goods to other countries and create additional exports. Here, the purchasing company views the lower value of the foreign currency as a bargain for purchasing goods because the lesser value purchases a larger quantity. In expanding the research and knowledge of the ongoing relationship between the United States and China, write a paper to summarize currency market intervention and decide whether this is a useful tool. Explain your rationale. Cite an example of how intervention has been used to benefit either of these countries and the circumstances surrounding this intervention. Did the United States or China succeed in their efforts? How is this known? Overall, do you believe this was a beneficial choice for the government and country? What data is your opinion based upon? This paper should be a minimum of 2 pages in length in addition to the title and reference pages. The APA style format must be used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This milestone is graded with the Milestone Three Rubric. Final Presentation The final presentation is due at the end of Module Seven. You will create a presentation to incorporate the knowledge gained and information presented in the previous research, interview, and milestones to explain how a company may break into global enterprise by gaining a new contract, whether the organizational structure and business objective play a part in the company's entrance to international trade, how transaction and other exposures play a part in the success or failure, types of domestic and international financing options for the business or project, and the changes or effects of the balance of payments and trade balance between the two countries and how each may cause fluctuations of interest rates, exchange rates, and the overall cost of the venture. Include an example of purchasing power parity, types of possible arbitrage, and how this company will decide if the potential profits are worth the risks. Keep in mind that this is your final project for this course. It should include all concepts covered in this course, extreme detail about historical trade between China and the United States, and your opinion of what the future may hold between these two countries. Utilize as many details as possible into this project, but do not copy the same information previously submitted. This submission is graded with the Final Presentation Rubric (below). Final Presentation Rubric The final presentation should be a minimum of 10-12 slides in Prezi, video, or other tool, including a title slide and reference slide. The APA style format must be used when citing and referencing information provided. Provide your name, course number, a title to the paper, and headers and footers where applicable. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Breaking Into Global Enterprise Exemplary (100%) Meets \"Proficient\" criteria and cites examples of how a company may break into global enterprise by gaining a new contract Proficient (85%) Explains how a company may break into global enterprise by gaining a new contract, supported with evidence Transaction and Exposures With Financing Options Provides in-depth analysis explaining how transaction and other exposures influence the success or failure with international trade, including types of financing options available. Citations support analysis Meets \"Proficient\" criteria in assessing the changes or effects of the balance of payments and trade balance between the United States and China and how each may cause rates fluctuations and overall venture cost. Citations support conclusion Provides analysis that explains how transaction and other exposures influence the success or failure with international trade, including types of financing options available. Supporting evidence is provided Draws insightful conclusions that are thoroughly defended with evidence and examples of purchasing power parity, possible types of arbitrage, and how the company will decide if the potential profits are worth the risks Draws informed conclusions that are justified with evidence and examples of purchasing power parity, possible types of arbitrage, and how the company will decide if the potential profits are worth the risks Balance of Payments and Trade Balance; Fluctuations of Rates Purchasing Power Parity and Arbitrage Assesses the changes or effects of the balance of payments and trade balance between the United States and China and how each may cause rates fluctuations and overall venture cost. Supporting evidence is provided Needs Improvement (55%) Explains how a company may break into global enterprise by gaining a new contract; however, examples discussed may have some gaps and misinformation Provides analysis that explains how transaction and other exposures influence success or failure with international trade, including types of financing options available; however, evidence cited may have some gaps and misinformation Assesses the changes or effects of the balance of payments and trade balance between the United States and China and how each may cause rates fluctuations and overall venture cost; however, supporting evidence may be incorrect or have some gaps and misinformation Draws conclusions about purchasing power parity, possible types of arbitrage, and how the company will decide if the potential profits are worth the risks, but does not defend with supporting evidence Not Evident (0%) Does not explain how a company may break into global enterprise by gaining a new contract Value 25 Does not provide analysis that explains how transaction and other exposures influence success or failure with international trade, including types of financing options available 20 Does not correctly assess the changes or effects of the balance of payments and trade balance between the United States and China and how each may cause rates fluctuations and overall venture cost 20 Does not draw logical conclusions about purchasing power parity, possible types of arbitrage, and how the company will decide if the potential profits are worth the risks. Does not provide supporting evidence 25 Writing (Mechanics/Citations) No errors related to organization, grammar and style, and citations Minor errors related to organization, grammar and style, and citations Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations Earned Total 10 100% Interview/Research Project Leena Salem FIN336 Ronald Spicer July 23, 2016 Assignment Executive Summary With the ascent of enthusiasm for outside organizations going into the Chinese business sector for motivations behind fare fabricating, as well as progressively both as a part of an all inclusive incorporated production network and also local deals inside the nation, due ingenuity on Chinese organizations and accomplices has never been more essential. While dependably a sensitive procedure, due steadiness in a remote domain can appear to be considerably more overwhelming than what a specialist might be acclimated to at home as a result of the absence of nature with the regulatory and social foundations set up abroad which may better encourage the procedure. Especially in China, where late concentrate on information security identified with private specialists has conveyed a larger number of inquiries than answers to light in regards to what is satisfactory practice, it is reasonable that numerous North American and European entrepreneurs are uncertain of how to adequately and suitably structure their due determination process[Ste12]. Overseas Operations of a Company As usual, before you start the regularly meticulous check of a potential business accomplice abilities it is vital to comprehend what data you will require. In China, you are not just going to audit the character of an accomplice to guarantee they are who they claim to be, additionally that their capacities match what has ensured to you in the underlying examinations that have occurred[Dou13]. A considerable rundown of inquiries can overwhelm at, to begin with, yet by taking an ideal opportunity to aggregate an intelligible response to these questions will permit you to maintain a strategic distance from inordinate expenses in the due constancy process. Start by going to the site of your Chinese counterparts and delineating the data they have given. It is crucial to connect with somebody you trust who can read Chinese in this procedure, ideally with experience directing business inside the nation. Look at the data that is accessible on their English or remote dialect sites to their Chinese dialect locales, and note any inconsistencies you may discover. Things to pay consideration on specifically are the Chinese name of the organization, the street number or addresses (if various), names of senior administration or authors, significant markets of premium, cases or proclamations identifying with remarkable advances or developments, and trademarks or brand markings[Mic061]. One stage which regularly ignored at the most punctual of stages in a due perseverance audit is to check the expressed name of the Chinese organization against the worldwide supplier boycott. The site kept up as a client produced rundown of hazardous suppliers prevalently in China who have occupied with deceitful business phones with outside purchasers. When you have your diagram of the organization given their site, connect with your essential contact with the firm and solicitation for data specifically from them. Any honest to Chinese goodness team will share fundamental data by giving a duplicate of their business permit issued by the State Administration of Industry and Commerce ('SAIC'), which will give their business enlistment number, authorized agent, address, and enrolled capital data. It ought to be seen as a first cautioning if an organization is not willing to give this data to any potential business counterparty. Any company ought to likewise ask for particular industry archives, for example, appropriate protection scope or patent declarations for mechanical or procedure advancements. If an organization is unwilling to give these reports forthright instantly it may not be as genuine as an altogether refusal to share a business permit, it is still critical to consider what the organization will share in advance in connection with particular industry materials[Iso081]. Incorporated into your solicitation ought to likewise be an audit of original contracts, data about existing customers, budgetary reports, and different materials as is standard to your industry. Know that these records might be produced or at last convey almost no weight in the event of a future question, yet a Chinese counterparty ought to be at any rate willing to furnish you with some extra documentation identifying with their business. Continuously confirm Chinese company names, addresses, and applicable recognize materials on these archives against what you have furnished with on the SAIC business testament. Sam's Sauce Italiano Goes Global Sam is the CEO of Sam's Sauce Italiano. He has recommended to the top managerial staff an arrangement to take his sauce into global markets. The Italiano Corporation has had enormous achievement broadly with the presentation of a natively constructed Italian tomato sauce called Sam's Sauce Italiano. The organization prides itself on typical fixings, for example, cleaved garlic, fresh basil and whole peeled tomatoes imported from Italy. This previous year's deals achieved record extents, bringing about the organization considering the broad market to proceed with their significant development design. At the point when entering a worldwide commercial center, an organization has six distinct choices that extent from low to high hazard[tra]. Exporting The universal showcasing procedure with the most minimal danger for the Italiano Corporation would trade. The organization would offer their sauce to purchasers in another nation. Trading provides the least hazard for an organization who needs to seek after global markets for a couple of reasons. In the first place, it is the slightest costly of the alternatives. There is no compelling reason to set up assembling operations in another nation. The organization additionally does not need to manage nearby government, as there are no stores or processing plants being built up. The Italiano Corporation is exceedingly considering this alternative since they have constrained learning of offering their items abroad. Another in addition to Italiano is that there is no whole venture. If the question fizzles elsewhere, then it is anything but difficult to recover the insignificant enterprise different ways. Like anything, there are additionally some certain inconveniences to sending out, including high transportation expenses and managing exchange obstructions. Licensing Another safe technique to enter the universal business sector is permitting. It is the fastest approach to begin a global business since the permit is from the remote business sector. In this technique, the licensee is allowed the privilege to utilize an assembling procedure, patent outline or some other organization particular data to make the item. Consequently, Italiano would get an expense or sovereignty from the licensee. There are a few detriments to authorizing. Italiano Corp would need to keep control over the licensee's exercises to guarantee legitimate nature of their sauce. Bearing in mind the end goal to ensure their sauce continues as before, Italiano would need to supply the licensee with the same fixings every day. Another sympathy toward Italiano would be that the holder could take the formula and attempt to showcase the sauce themselves. The licensee could turn into Italiano's greatest rival sometime in the future! Since Italiano does not have a substantial physical nearness in the holder's nation, it is anything but difficult to lose control of the operation. Consistent correspondence and organization visits must be actualized to guarantee appropriate collaboration. Italiano has chosen that the absence of scrutiny is a noteworthy reason not to seek after authorizing[Kat97]. Various Methods for Financing International Trade International trade is a fundamental element in the success of economies around the world. Regular financing techniques that assistance is encouraging exchange amongst purchasers and merchants crosswise over universal fringes incorporate working capital financing, trade out development and open records. Each of these strategies utilizes an assortment of transfer money items that are accessible to exporters to expand income and lessen the danger connected with delivery issues abroad. Exporters use distinctive strategies for financing universal exchange, contingent on the assets they have accessible and the value-based danger they can assimilate. The capacity to get to global markets is an essential key open door for producers and dealers since it extends an organization's client base exponentially. Worldwide exchanging is substantially more muddled than making residential deals, in any case, and accompanies inside and outer anxiety calculates that regularly figure out if an organization can successfully work in the global field. The trade out development technique for financing global exchange requires the shipper to pay for his requests forthright. It expels the value-based danger from the exporter additionally makes it harder for him to contend in the commercial center. Electronic installment techniques, for example, utilizing Master cards and wire exchanges for installment, are the signs of this strategy. To address the inward anxieties of financing global trade at the assembling and income level, an exporter can utilize different sorts of working capital financing. This investment strategy uses advances and ensures from government programs intended to help to send out, particular projects by worldwide exchange affiliations and fare credit protection offered by loss organizations. Working capital financing ways the exporter at the pre-shipment stage and makes it feasible for him to be a member in universal markets as an edge matter by settling income and protecting merchant execution. The technique an exporter utilizes for financing global exchange relies on upon these anxiety components. An organization can just fire merchandise if it can stand to produce them and sit tight for installment sooner or later when the products are conveyed or sold on the shipper's end. Likewise, an organization can just enter the sending out business on the off chance that it can figure out how to retain or settle the outer danger of delinquency. The exporter may stretch out acknowledge to the shipper for the trust that installment will be made on conveyance as concurred, or may require installment forthright, moving the danger to the merchant. Shockingly, an exporter who obliges shippers to pay ahead of time may not be as aggressive in the universal commercial center as an exporter who can sit tight for installment. Utilizing clear record terms is the strategy for financing worldwide exchange that has the most noteworthy contribution by banks and financial administrations firms. The financing alternatives under this technique for the most part effect the post-shipping period of the exchange. Letters of credit, an obligation lessening strategy called forfeiting, calculating and narrative accumulations fall under this technique. Recommendations As a little entrepreneur, globalization displays an open door for development, extension and contributing abroad. Albeit numerous small organizations are figuring out how globalization can substantially grow and affect their business operations, some are still reluctant to grasp this new business opportunity. Globalization and putting are identical from various perspectives and cooperate all the while; execution of both requires cash, exertion, research and time. Both include building up connections, joining forces, concentrating on shoppers, putting monies out to test the business sector, going to a focused on the corporate community for advancement, and above all, considering the long haul objectives previously, then after the fact situating the little business. The "apprehension of the obscure" and the dangers are alarming for some small organizations. Small entrepreneurs must mull over the likelihood of progress as opposed to concentrating on fear and disappointment. On the off chance that done legitimately, putting resources into another business sector can harvest considerable prizes. On the off chance that you go out on a limb the with legitimate arranging, you will settle on educated choices. These strides will lighten the pitfalls a few organizations experience on account of the absence of learning[Eli04]. It doesn't make a difference if the associations are putting forth administrations or item; make it known who and what your association is about, objectives and future inclusion in the new market. Build up an affinity inside groups and with different organizations. Teams must establish connections, and publicizing effort can be enormous. Realize what sorts of online networking are common in these new markets (different nations have comparable social networking stages to Facebook, Twitter, and so on.). An association must take an ideal opportunity to find out about the new markets; likes and aversions as opposed to concentrating on only extending for development. Advertising to another society, target fragment or demographic requires understanding the purchasers. It is critical for small entrepreneurs to perceive and understand the open doors that exist in different markets far and wide. Small organizations/SMEs must recognize and comprehend that globalization is universal business, and worldwide business is an interest in today's business operations. Make a pledge for the long haul to build up secure and genuine business connections, client devotion, and admiration. References Brown, E. W. (2004 ). What Success Factors are Important to Small Business Owners? International Small Business Journal , 577-594. Doug Barry, U. S. (2013 ). Exporters! The Wit and Wisdom of Small Business Owners Who Sell Globally: The Wit and Wisdom of Small Business Owners Who Sell Globally. Government Printing Office. Isobel Doole, R. L. (2008 ). International Marketing Strategy: Analysis, Development and Implementation. Cengage Learning. Michael Czinkota, I. R. (2006 ). International Marketing. Cengage Learning. Parker, K. (1997 ). Breaking Into the Trade Game: A Small Business Guide to Exporting. DIANE Publishing. Strauss, S. D. (2012 ). The Small Business Bible: Everything You Need to Know to Succeed in Your Small Business. John Wiley & Sons. tradeport. (n.d.). Step Four: IMPORT TRADE FINANCE. Retrieved from tradeport: http://www.tradeport.org/index.php/trade-toutorials/107 Milestone 2 FIN336 Leena Salem This paper is intended to describe the law of one price and purchasing power parity (PPP) that even through exchange rates may fluctuate. It will also explain what arbitrage is, utilizing and comparing goods that are purchased in China, and in the United states with their currencies. In addition to explaining the differences between covered interest arbitrage, intermarket arbitrage, and triangular arbitrage, and how the cycle of investments and cross rates plays a part in those. Purchasing power parity (PPP) theory determines the exchange rate, and to compare the average cost of goods and services between two different countries. This theory is based on the law of one price. Due to market exchange rates fluctuations that takes place. GDP of one country measures with their own currencies, for example, the US will measure with the Dollar. This is then converted to other countries currencies. Due to this reason, changes will occur in GDP. Many of the time, business firms or individuals will take advantage of exchange rates to gain more value from the international trade, this is known as arbitrage. Arbitrage is defined as the simultaneous purchase and sale of an asset to profit from a difference in price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms ("Arbitrage Definition | Investopedia"). This exists as a result of market inefficiencies. Covered interest arbitrage is a method of strategy an investor uses a forward contract to hedge against exchange rate risks (Elvis Picardo). This is a practice of using favorable interest rates differentials to invest in higher-yielding currency, leading to hedging the exchange risks through a forward currency contract. This is only possible if the cost of hedging the exchange risk is less than the additional return generated by investing in the higher-yielding currency. This opportunity is very uncommon and could lead to imbalances. Investors who do use this strategy is making simultaneous spot and forward market transactions, with the goal of obtaining riskless profit through the combination of currency pairs. This does include tax treatment in various jurisdictions, foreign exchange or capital controls, transaction costs, and bid-ask spreads (Elvis Picardo). The intermarket trading system (ITS) is an electronic computer system that joins the trading floors of all major equity American exchanges. This system essentially allows all eligible member market makers and brokers the ability to execute buy and/or sell orders at different exchanges whenever they see that a better price quote is available ("Intermarket Trading System (ITS) Definition | Investopedia") Triangular arbitrage is the process of converting one currency to another, converting it again to a third currency and, finally, converting it back to the original currency within a short time span ("Triangular Arbitrage Definition | Investopedia"). As an example, suppose you have $1 million and you are provided with the following exchange rates: EUR/USD = 0.8631, EUR/GBP = 1.4600 and USD/GBP = 1.6939. With these exchange rates there is an arbitrage opportunity: Sell dollars for euros: $1 million x 0.8631 = 863,100 euros Sell euros for pounds: 863,100/1.4600 = 591,164.40 pounds Sell pounds for dollars: 591,164.40 x 1.6939 = $1,001,373 dollars $1,001,373 - $1,000,000 = $1,373 From these transactions, you would receive an arbitrage profit of $1,373 In conclusion, when speaking of PPP, Intermarket ttading, traignular arbitrage, are all within ethical behavior when done in the correct and proper method within exchange rate rules and regulations. Although all have their differences, they all tie into the knot of being a part of the trading and investing circle. "Triangular Arbitrage Definition | Investopedia". Investopedia. N.p., 2006. Web. 9 July 2016. . "Intermarket Trading System (ITS) Definition | Investopedia". Investopedia. N.p., 2007. Web. 9 July 2016. Elvis Picardo, CFA. "Covered Interest Arbitrage Definition | Investopedia". Investopedia. N.p., 2014. Web. 9 July 2016. "Arbitrage Definition | Investopedia". Investopedia. N.p., 2003. Web. 9 July 2016. FIN336 Leena Salem Milestone One This paper is intended to explain trade balance, interest rates, and exchanges rates are related. It will also explain a deficit in China or the US change; the overall advantage and disadvantages of the trade, how cost and quatity of imports and exports are with regards to electronic equipment, the fluctuations of supply and demand, last but not least, the explanation of the philosophy of \"international crowding out\" and how it may occur. Many countries allow the exchange rate to be determined by demand and supply. Some countries will attempt to keep the exchange rate between their currency and another currency constant, in order for the economy to be stable. When countries agree to keep the value of their countries currency it is defined by its supply and demand factors. If a country has high interest rates, it will attract more investors to buy into that currency to invest, making an increase in demand for the currency. If the inflation is high, the value of the currency will decrease over time, allowing decrease in demand. If the country is high in productivity and exports often, foreigners will need to buy currency in order to purchase goods, leading to an increase in demand. China's comparative advantage today ties largely in labor intensive manufactured goods. According to Leanard K Cheng, the head of the economics department in Hong Kong University of Science and Technology, labor intensive industries would be a comparative advantage to china, nonetheless, natural resource intensive industries, capital intensive industries, and technology intensive industries are in China's comparative disadvantages. The United States' comparative advantage relies on increasing in services, financial services, agricultural products and processed food, along with high-tech manufacturing goods. One of the main comparative advantages in the US are products that export more than imports. This may be a result of non-free trade practices, or as a result of more production efficiencies. When speaking of comparative advantages, within the last two decades, a share of services in the US GDP rose from 60 percent to 72 percent it continues to rise. The demand for high quality services at home contributes to global comparative advantages, allowing for exports of professional services. When speaking of trade surplus in services, the US has a clear comparative advantage in the financial sector as well. In 2009 the value of inflow of foreign-owned financial assets into the US was $306 billion, the value of outflow of US owned financial assets was $140 billion. This is compared to the years 2006-2007 when foreigners were buying more than $2 trillion in US financial assets. Neighboring on the world's largest economy, Latin America often attracts the interests of Hong Kong exporters. In the light of an expanding consumer market there, more and more Hong Kong exporters are engaged in trade with the region, exporting goods valued at billions of dollars to the region each year. Despite this, trading with Latin America often encounters challenges, chiefly stemming from its unstable macroeconomic environment. While the Mexican financial crisis in 1994 nearly led to a collapse of the country's economy, the currency crises of Brazil and Argentina in 1999 and 2002 respectively have further undermined the region's economic development. Since the beginning of 2003, however, many Latin American economies have shown solid recovery from recession. While domestic and foreign investors gradually regain confidence in the region, local consumers also resume their spending mood. Latin America, with a total population of over 530 million, often catches the attention of Hong Kong exporters. Given a growing consumer market there, an increasingly number of Hong Kong exporters have established trade ties with the region. Weathering the currency crises of Brazil and Argentina in 1999 and 2002, many Latin American economies have shown solid recovery from recession since the beginning of 2003. The major impetus to this economic recovery has been strong export demand. Benefiting from exchange rate depreciation and increasing sales to Asia, Latin America's exports have picked up strongly. Trading activities in Latin America accelerate along with trade liberalization and proliferation of free trade agreements (FTAs) in the region. Latin American countries probably have the most FTAs in the world. Better-known FTAs in the region include Mercosur, the Andean Community and the Central American Common Market. On the one hand, the proliferation of FTAs in Latin America may cause trade diversion, in which countries in the region may prefer sourcing from other member countries. On the other hand, FTAs may help create more trade in the region, thereby serving to improve the regional economy. Bilateral trade between Latin America and Asia has expanded rapidly in recent years. While Latin American countries export a variety of commodities and agricultural products to Asia, the industrialization and economic development of Latin America has led to a strong demand for capital and consumer goods from Asia. However, the liberalization of trade regimes of many Latin American countries affects the role of Panama as a gateway to the region. Many exporters are increasingly interested in direct selling to the region. To develop the Latin American market, Hong Kong exporters have to pay attention to the salient features of the region. Latin American countries are mostly mid-to-low income economies. Mass consumers in the region can generally afford low-cost items only, though mid-end products with stylish and unique design are also well received. In addition, changes have been taking place in retailing. In particular, hypermarkets and chain stores have been gaining importance in Latin America. Inventories account for a relatively small portion of a nations' wealth and long term capital formation: they constituted only 8 per cent of U.S. tangible assets in 1958 and 6 per cent of tangible asset accumulation from 1946 to 1958. Yet fluctuations in nonfarm business inventories, which make up roughly three-fourths of total inventories, are an important source of cyclical instability. The explanation of this paradox (that nonfarm inventories which are relatively unimportant as a part of national wealth and long term wealth- accumulation are nevertheless of strategic importance during business cycles) lies in the fact that firms tend in the course of the business cycle to alter sharply their short term rates of inventory accumulation. Accumulation (investment) is a source of demand for the factors of production, and variations in the rate of accumulation or shifts from accumulation to reduction (disinvestment) are a source of variation in the demand for the factors of production. It is for this reason that attention often focuses on movements in inventory investment rather than on movements in inventories themselves. In the course of the business cycle rates of accumulation change rapidly and cyclically, typically moving upward to a peak of investment in late expansion and downward to a trough of disinvestment in late contraction. The foregoing argument represents an attempt to apply the principles of economic theory to the problem of budgeting, with minimum use of the language of economics. It may be useful to summarize the central argument in economic terms. If government activities can be expressed in quantitative terms, the government can draw up a preference map showing rates of substitution among its various activities. If it knows the relative costs of these activities, it can then draw up its series of hypothetical budgets. If it can produce from this information index numbers of public goods, and also of private goods, it can draw up another preference map, consisting of a family of indifference curves relating public to private goods. With its cost information it knows the rate at which private goods can be transformed into public goods. It can thus find its optimum budget. Under these circumstances there could be a clear division of labor between policy makers who determine the indifference curves and budget makers who determine the cost curves and make the computations. In practice, the construction of index numbers for various programs would involve enormous difficulties. Initial weights of the various components would have to be determined, and the problem of the changing mix of optimal programs would have to be wrestled with. The relation of any index number to what it was supposed to indicate would be subject to change. The significance of the defense index would be affected by the capabilities of the enemy, and of the health index by the prevalence of disease. At all these points the construction of an index would depend heavily on judgment. But the construction of an index might give the impression that objective methods were possible and that the exercise of judgment was not necessary. With that being said, it is clear to say that trade balance, interest rates, and exchanges rates are all there to keep economy at a stable rate along with economies around the world. China and the US depend on each other for trade, although they both have their advantages and disadvantages, they rely on each other for the stabilization for each countries economy. Costs of imports and exports also depend on the country that is being exported from or imported to. It is crucial to know and learn these aspects for any investor when wanting to trade. "Balance Of Trade (BOT) Definition | Investopedia". Investopedia. N.p., 2003. Web. 25 June 2016. "Our Comparative Advantage - Nytimes.Com". Nytimes.com. N.p., 2016. Web. 25 June 2016. Chen, RuYanjie and Robert Guang Tian. "The Economic Connections Between China And The U.S.: How To Benefit Both Players Through International Trading". Undergraduate Research Journal for the Human Sciences 10.1 (2011): n. pag. Web. 25 June 2016. "World Bank: The Trade Challenge For Latin America And The Caribbean". World Bank. N.p., 2016. Web. 25 June 2016. Amadeo, Kimberly and Kimberly Amadeo. "The Strange Ups And Downs Of The U.S. Economy Since 1929". About.com Money. N.p., 2016. Web. 25 June 2016. FIN336 Milestone Three Leena Salem This paper is intended to explain currency manipulations, effects on the global economy, and the organizations involved. Overall, over 20 countries may have been accused of currency manipulation. However, little stands in their way from stopping their currency manipulation. A number of countries and organizations have certain responsibilities and rights to protect the jobs and currency values that they represent. There is a number of complications to address and strategies that must be carefully used to stop this currency war that is affecting much of the worlds population. This is one of the main issues that has a major effect on global stability. In my opinion, countries should try to counter attack currency manipulation with taxes on foreign money reserves, legislations, and unification with other affected countries. Global organizations should stand up to currency manipulations to promote better world economy growth for the long run. When a country decreases the price of their currency in order to artificially make exports cheaper would be the simplest way to define currency manipulation. It also helps the country who manipulates its currency by making imported goods seem more expensive. To do this, they can print more of their money, it can also buy bonds or currency from other countries. Currency can be purchased through Forex markets also known as FX. \"Trading in the FX market reached an all-time high of $5.3 trillion per day in April 2013, a 35% increase relative to 2010.\" (1) The history of currency manipulation came to play in the late 18th centry. During this time the US, Germany, and Japan flowing in the steps of Great Britain tried to fix their currency exchange rate with gold. They favored making their currency value as low as possible so that they could buy civil infrastructure or military equipment and to receive foreign loans. In contrary when other countries started to compete against non-gold standard countries like China and Brazil, they would choose to leave the gold standard. This decreased the value of many countries currencies, much like the US. One of Winston Churchill's relatives claimed \"The yellow man using the white metal holds at his mercy, the white man using the yellow metal.\" This allowed countries to keep their exports competitive. \"Those who cannot remember the past are condemned to repeat it.\" (2) Although over 20 countries are currently currency manipulators, many of them, have no other choice. Countries like Brazil rely heavily on exports and they must make the price on their goods competitive with already currency manipulating competitors. The US controversially uses stimulus to promote domestic economic growth to aid us out of the recession. As one may notice, determining if a country's currency manipulator is determined with each different case or country. \"Eight of the most significant currency manipulators are: China, Denmark, Hong Kong, Korea, Malaysia, Singapore, Switzerland, and Taiwan.\" Although in 2011, China's cash reserve ratio to GDP was better than the other countries like the United Arab Emirates, China being at 45% and the UAE being at 216% (3), it made it as if the significance comes from GDP ratio, political situations, and country sizes. China, taking size as an example, causes a massive ripple effect that makes other countries who rely on exports heavily to have a currency manipulation in order for them to keep competitive advantage against China. China's foreign reserves in 2013 were $3,660 billion (3). While it is unfair, China can be politically unreasonable towards world issues. One of the major countries who that effects is the US who has overvalued the dollar. This is because; the US currency is the worlds standard. In conclusion, the benefits of currency manipulation heavily outweigh the effects of having currency manipulation. It would, in short, increase jobs in the countries who need jobs and increase wealth where wealth is needed in the world. Governments may loose in the end by they should tend to their peoples needs. Currency manipulation devices should be seen as an economic hostile. Since global organizations such as the International Monetary Fund and the World Trade Organization, and United Nations do not help the cause of destroying manipulation, it is up to the countries who do not participate in such acts to take action. These actions will come by means of trade sanctions, tariffs, legislations, unifications, negotiations, and taxes on their currency held by non-approved countries. Work cited (1) Rime, Dagfinn, and Andreas Schrimpf. "The anatomy of the global FX market through the lens of the 2013 Triennial Survey." BIS Quarterly Review (2013): 27. (2) Wolf, Martin. "Currencies clash in new age of beggar-myneighbour." Financial Times 28 (2010). (3) Baker, Robert E., . " Stop Currency Manipulation and Create Millions of Jobs. EPI Briefing Paper# 372." Economic Policy Institute(2014)