INTERNATIONAL FINANCIAL MARKETS Assignment Example | Topics and Well Written Essays - 250 words

INTERNATIONAL FINANCIAL MARKETS - Assignment ExampleThese incentives tin new revenue opportunities for Acme in the United States.Countries in the EU that can provide these incentives atomic number 18 backed by the strong power of the euro currency and it also creates a linkage between new(prenominal) European countries that are already developed with a quality infrastructure for manufacturing and distribution. Being able to entrust on these net mildews and existing business expertise makes JEL Industries a much better option than trying to work from the ground-up at DBC Industries outside of the EU. The strong euro has also provided developing countries in the European Union with knowledge of metallurgy, labour vehicles, glass production and heavy machinery production (Weidenbaum). Therefore, if Acme desires ample raw materials or the ability to adopt from a skilled labor pool of talented individuals, the EU is the most vital option for long-term growth and security for the bu siness.Further, the value of the U.S. horse is currently falling compared to the euro, thitherfore there are several(prenominal) cost advantages to selecting JEL Industries over DBC Industries. When consumers or industrial buyers make purchases of Acme products, they are using currency that willing provide a higher profit. Why is this? The business can establish a higher determine policy on its products to offset the costs of operations and/or distribution, and when the exchange between the EU and the U.S. dollar occurs, there will be more profit than if the products were sold domestically. Because the EU value is relatively stable, there is not the concern of sudden economic collapse that might occur with a more self-contained currency outside of the European Union. Thus, for profit purposes, JEL Industries is the recommended choice.Because more communications occur between EU partners, there will be less long-term costs associated with