GROUP 2

REPORTING
INTERNATIONAL
PRODUCTION
-deals with production of goods
and services in international
locations and markets.
 WHAT ARE THE IMPORTANCE OF INTERNATIONAL
PRODUCTION?

-it gives businesses the opportunity to

expand into new markets, reach
international buyers, and increase revenue.
FOREIGN MARKET
- are any markets outside of a
company's own country. Selling in
foreign markets involves dealing
with different languages, cultures,
laws, rules, regulations and
requirements.
THE ADVANTAGES AND DISADVANTAGES
OF FOREIGN MARKET

ADVANTAGES
By being truly global and operating across multiple time zones, foreign
exchange market offer great liberty to traders. There are other advantages
as well such as range of investment options, very low transaction fee, zero
or negligible commission and a demo account for hands-on practice.

DISADVANTAGES
- set-up cost
- risks of none compliance
- cultural barrier's
- managing overseas employee
FOREIGN MARKET VS. INTERNATIONAL PRODUCTIONS

Foreign market Example:

Apple has uniform product offerings in all countries. It is a

perfect example of global marketing.

International production Example:

Dunkin' Donuts has an international marketing strategy that is

adaptive to each region and country.
 FOREIGN DIRECT
INVESTMENT

Foreign direct investments (FDIs) are

substantial, lasting investments made by a
company or government into a foreign
concern.
WHAT ARE THE PROS AND CONS OF FOREIGN
DIRECT INVESTMENT?

1
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INTRA FIRM TRADE
It is the trade between two branches of a multi-national
corporation.
 ADVANTAGES AND DISADVANTAGES OF INTRA FIRM

Advantage - allows workers and firms to learn and innovate on

particular products.

Disadvantage - international shifting of profits.

 INTERNATIONAL FINANCE
- is the study of monetary interactions between two or more
countries, focusing on areas such as foreign direct investment and
currency exchange rates.
Importance of International Finance
1) Helps keep international issues in a disciplined state.

2) An important tool to find the exchange rates, compare

inflation rates, Get an idea about investing in international
debt securities.

3) Helps in calculating exchange rates which are very

important in international finance, as they let us determine
the relative values of currencies.
Importance of International Finance
4) Various economic factors help in making international
investment decisions.

5) It helps many countries to follow similar reporting

systems.

6) Helps in saving money by following the rules of reporting

on a single accounting standard.
 BALANCE OF PAYMENTS
The balance of payment (BOP) is a statement that
documents all transactions from one nation to another
between entities, government agencies, and people
during a specific time period.

The statement includes all transaction information,

giving the authorities a clear picture of the money
movement. After all, the fund's intake and outflow
should be equal if the items are listed on the statement.

The balance of payment for a country reveals whether

it has a financial surplus or deficit. It indicates if a
country's exports exceed its imports or vice versa.
The role of Balance of Payments
-is keep systematic records of all the economic transactions
(visible and non-visible) of a country with all other countries in
the given time period. In the BoP accounts, all the receipts from
abroad are recorded as credit and all the payments to abroad are
debits.
SAMPLE OF BALANCE OF PAYMENTS
Country A purchases $10 million worth of goods from Country B.

The $10 million worth of goods in INFLOW to Country A is a debit and will be
recorded as -$10 million.

The payment of Country A to Country B, which is a $10 million check, will be

recorded as a $10 million credit (+ $10 million).

The amounts offset each other, so the overall BOP is zero.

MEMBERS:
EROY, SHEIKA MIA
RAZ, JAMAICA
PELICANO, JOHN LEO
BARANDA, DARELLE
VALLEJOS, APRIL
LANIBA, KRISSA
UMBAO, TZADDY JANE
SALAMATIN, SHEERLYN
VISTAL, HONEY
FRANCISCO, JEAN K
PEREZ, CRISTIAN
PACHE, EDWARD
MYLANE, SALAHID
LIBRES, ALMERA JEAN
ALGABRE, GRACEZIEL