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Detailed Explanation to International trade

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When is international trade an opportunity for workers? When is it a threat to workers?
What are some of the major challenges confronting the international trading system?

Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability? Be sure to show all applicable work

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Solution Summary

International trade becomes an opportunity for workers if it creates a lot of employment in another country in which it goes to start a business.

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When is international trade an opportunity for workers?
International trade becomes an opportunity for workers if it creates a lot of employment in another country in which it goes to start a business. For example, US companies entering India for outsourcing have created a lot of opportunities for young Indian Information technology professionals to work with world class companies on big projects and travel all around the world. Booming international trade between India and USA, not only in the IT sector but other sectors as well as opened up plethora of opportunities to workers seeking global exposure. If international trade was absent between these two countries, Indian workers would not have the opportunity to work on cross border projects. Booming international trades between different nations of the world is not only providing opportunity to make more money, but also improve their skill sets and knowledge.

When is it a threat to workers?
International trade becomes a threat to workers when global companies, in search of cheaper labor force and workers, lay off most of the workers in their own country and transfer the jobs to cheaper countries. Taking ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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