Literature Review: The Definition Of International Trade Internationalization

2205 Words9 Pages
Literature Review First of all, we need to figure out the definition of international currency. The concept of international currency originates from vehicle currency. According to Paul Krugman (1979), historically, certain currencies have come to be widely used as vehicle currencies, for instance the pound sterling before 1914 and the U.S dollar in recent years. These currencies used to invoice an international trade transaction, especially when it is not the national currency of neither importer or exporter. To put it another way, these currencies have served as international media of exchange, which are the early international currency. Theoretical discussions of currency internationalization usually begin with the functions of an international…show more content…
As suggested by Bureau of Economic Analysis (BEA) under U.S Department Commerce, International transaction account is divided into the current account and the capital account, based on the different types of cross-border interaction (2014). According to BEA’s research, the international transactions accounts (ITAs) record transactions between U.S and foreign residents over a period of time. The transactions are grouped broadly into (1) transactions related to the production of assets (such as goods and services), the generation of income (such as income earned from holdings of financial and real assets), and transfers (such as gifts), and into (2) transactions in financial assets and liabilities (which include financial transactions in direct investment, in securities, and in claims and liabilities of banks, nonbanks, and government). The first group of transactions is referred to as the current account and the second group as the capital account. The current account can be expressed as the difference between the value of exports of goods and services and the value of imports of goods and services. And the capital account is the net result of public and private international investments flowing in and out of a country. Cross-border settlement has absolutely relationship with internationalization process. Intuitively, much more cross-border settlement using a specific kind of currency will increase the reputation of the currency, and further will increase the acceptance degree of that currency in international currency market. There is a plenty of research on the relationship between cross-border settlement and internationalization. Mundell (1994) points out that the cross-border settlement with one kind of currency is the first step of internationalization of this currency, as doing international business with specific
Show More
Related

  • Essay On Education And Globalization

    2550 Words  | 11 Pages

    first part will discuss various definitions of globalization of different scholars views. The second part of the essay will be concentrate to discuss the pros and cons of how globalization affects teaching in Hong Kong. It will then be followed by a conclusion of the whole idea of globalization in Hong Kong education. Literature Review Globalization is a term that is not yet well defined; it has different meanings for different groups. There are some definitions from the articles I have read. Kwok

    Read More

  • Re-Entry Action Plan

    9259 Words  | 38 Pages

    total University within the ethos of excellence in public service, social responsibility and accountability for the 21st century. Still our aim is the “universityhood” of the College under the challenging world of competition in the name of internationalization of education as brought by globalization, thus, there should be no way for turning back for us to find a niche as one of the providers of knowledge to the province, to the region, to the nation and beyond. And to carry out this vision, the

    Read More

  • Administrative Corruption In Nepal

    9920 Words  | 40 Pages

    Chapter One 1. INTRODUCTION 1.1. Historical and political Background 1.1.1. Nepal a Brief review Nepal, a mountainous country in south Asia, had been united by then king Prithvi Narayan Shah during his reign, 1743-1775 AD. After his death his successors also continued unification process and extended the boarder of this nation by 1816 before the Sugauli Sandhi (a treaty done with the then British India at the place named Sugauli). The Gorkha conquest in the late eighteenth century united into

    Read More

More about Literature Review: The Definition Of International Trade Internationalization

Open Document