Contractual entry modes

International leasing

International Licensing

International Franchising

Help with the economic crisis:

• Financial assistance: provide loans to countries experiencing balance of payments problems. IMF does not lend for specific projects.

• Technical assistance: to support the development of the productive resources of member countries by helping them effectively manage their economic policies and financial affairs.

• Surveillance: to promote global economic stability. Overseeing the international monetary system and monitoring the economic and financial policies, to provide early warnings about potential risks to stability.

Forward rate- the exchange rate transaction that requires delivery of transaction at a specific time in the future (30/90 days)

Pegged: Country aligns or pegs the value of its currency to that of a major currency like the US dollar (fluctuates only within a set range).

Floating: Determined by the free forces of supply and demand of the foreign exchange market.

2) Custome Union- removal of trade barriers and common trade policy

3) Common Market- All of the above and free mobility of labor, production and technology

4) Economic Union- All of the above and the same monetary system

5) Political Union- All of the above and same political policies

-Helps save costs on importing goods that would otherwise had to of been produced in the domestic market

-Helps the countries involved grow economically