“Determinants of Trade Flows and Financing International Trade”

Determinants of Trade Flows and Financing International Trade”  Please respond to the following:

  • Analyze the major effects that microeconomic and macroeconomic factors could have on the international flow of funds between countries and the primary manner in which such factors could affect a country’s balance of payments and its currency. Provide one (1) example of such effects on the U.S.
  • Examine the advantages for an American Multinational Corporation (MNC) that is able to source funds globally. Imagine that you are the CEO of a Fortune 500 company who is in need of capital in order to expand from the U.S. into Mexico. Determine the source of funding that you would choose and the currency in which the loan would be denominated. Provide a rationale for your response.