interfinance.doc

INTERNATIONAL FINANCE PREFACE I. What is international finance? Finance -- the management of money, especially money controlled by a government, company or large organization; or the provision of money when and where required. International finance studies the relationship of international money and finance. It includes the balance of payments, foreign exchange reserve and foreign exchange rate. II. Why should we study it? Economic integration (经济一体化): Different economies’ markets are linked through trade and investment. Creation of the World Trade Organization (WTO), a global trade association, and the rise of regional economic linkages and trade pacts (区域性经济联系和贸易协定的增加) The emergence of China as a major trading partner, and China’s entry into the WTO (2001) The global trend toward free-market economies The rapid industrialization of the Far East and Pacific Rim The emergence of a diverse set of central and eastern European economies Reunification of East and West Germany Hong Kong’s 1997 return from British to Chinese control Adoption of the euro by 12 European countries Globalization (全球化): market integration (市场一体化), world governance (世界性管理), global society (全球社会) and mobility of peoples and information (人口与信息的流动) The World’s Major Economic Cooperation and Free Trade Agreements WTO – World Trade Organization 143 members NAFTA – North American Free Trade Agreement The United States, Canada, and Mexico EU – European Union Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain. ASEAN – Association of South-East Asian Nations Brunei (文莱), Cambodia, Indonesia, Laos, Malaysia, Myanmar (缅甸), Philippines, Singapore, Thailand, and Vietnam. APEC – Asia-Pacific Economic Cooperation 21 members including Australia, Canada, China, Japan, Korea, Russia, and the United States. APEC promotes open trade and economic cooperation in the region. Mercosur – the “common market of the Sout