Discuss the monetary environment of America and how if affects businesses that are or want to operate internationally.

Authors Avatar by pejudavid222 (student)



For this assignment I will be discussing the monetary environment of America and how if affects businesses that are or want to operate internationally. I will be relating the information to America and how businesses are affected by international trade affiliated with America.

Common currency has substantial benefits to international trade. Countries with the same currency find it much easier to trade between each other. For example recently the liberal government in the UK wanted to change our currency from Pounds to the Euro. By doing this we would increase the international trade between the UK and the A high majority of Europe. This occurs because of Europe being a free trade area. Throughout the United States of America they use the same currency of the US dollar, giving all the common currency benefits. International businesses see it as an incentive because it makes trade less complicated and there is no risk of losing money. In South America only Ecuador use the US dollar, so the benefit or incentive of common currency does not apply in this area. The minimum wage


Liquidity can determine whether a business decides to operate internationally. The inflation rate in America is 1.1% the lower the rate the cheaper the prices should be. America is in a state of growth meaning that things are improving such as population is being maintained and employment increase. This is good information for Tesco because they would be able to supply cheaper services and products. Taxation laws in America are unique because it varies from state to state. Businesses entering this market can take advantage of the situation by operating in the states that have light taxation laws.

Join now!


Factoring is used to describe services where finance is made available to provide funds against the security of trade debts. It is used for the trade between one business and another business; it ensures sufficient working capital to meet the cash flow requirements. There are generally good deals that factoring businesses provide because it is a very competitive market. It is a great alternative for obtaining money instead of lending from banks. America has a vast amount of companies that cover factoring. The benefits of Factoring for businesses are:

  • Factoring provides a large and quick boost ...

This is a preview of the whole essay