Banks involved in commercial lending provide a wide range of financing packages for international trade, commonly called trade finance. Trade finance not only assists the buyer in financing its purchase but also provides immediate cash to the seller for the sale.
The Natural Rate of Unemployment (NRU) is the rate of unemployment after the labor market is in equilibrium, when real wages have found their free-market level and when the aggregate supply of labor balanced with the aggregate demand for labor.
Game theory is the study of rational behavior in situations involving interdependence. Game Theory is a formal way to analyze the interaction among a group of rational individuals who behave strategically.
In my previous post, using the nominal exchange rate we could compare the prices of iPods across countries. That was the simple version, and since it doesn’t take inflation into account, it won’t be as accurate. By calculating the Real Exchange Rate, we can get a more accurate answer to the question; which country has the cheapest iPod?
Barriers to Entry are designed to prevent potential competitors from entering the market. Some barriers to entry are placed by the government, while others could be related to cost. These barriers result in different market structures such as monopolies or oligopolies (a few firms).
The Securities and Exchange Commission (SEC) in the United States financial system is a regulatory body that monitors the financial system, exchange, and securities market. Securities are types of financial instruments created in financial markets.