Understand the nature and benefits of globalization Explain why multinational corporations are the key players in international economic competition today. Classify the types of the MNC and explain their motivation for economic expansion. Explain the need to rapidly exploit changing economic conditions. Characterize the global financial marketplace and explain why MNC managers must be alert to capital market imperfections. Explain the concept of equilibrium exchange rates. Identify the basic factors affecting exchange rates in a floating exchange rate system. Calculate the amount of currency appreciation or depreciation Describe the motives, forms, and consequences of central bank intervention in the foreign exchange market. - Explain how and why expectations affect exchange rates. - Understand the 4 different types of exchange rate determination and how equilibrium is achieved. - Describe the origins, purposes, and consequences of the European Monetary System and the European Monetary Union. - Describe the origins, and the purposed mechanisms to deal with the various emerging market currency crisis that have occurred during the past decade