4. Identify and describe the ways in which a US company can participate in inter

Question

4. Identify and describe the ways in which a US company can participate in international commerce.

5. The price of a currency forward contract is determined by the relationship between interest rates of the two countries in question and the time period covered by the contract. Is this statement exactly true, partly true or false. Explain your response.

6. Company ABC commits to sell $10 million of its product (produced in the US with raw materials from the US) to a Japanese customer delivered within 60 days from today with payment to be received 90 days from today in yen. What are the risks faced by ABC? What are the events in the currency markets which would erode the profitability of this sale? How can ABC protect itself from the adverse consequences of currency market fluctuations?

Explanation / Answer

he Office of Commercial and Business Affairs (CBA) plays a major role in coordinating trade and investment matters in support of U.S. firms doing business overseas. Our mission is to ensure that private sector business concerns are fully integrated into U.S. foreign and economic policy, and engages U.S. government resources to assist and promote U.S. business interests overseas. This office covers the following key initiatives: Commercial Diplomacy: CBA coordinates State Department advocacy on behalf of American businesses and can provide assistance in opening markets, leveling the playing field, protecting intellectual property and resolving trade and investment disputes. CBA works with U.S. Government trade promotion partners and U.S. embassies around the world to support American businesses overseas by providing commercial information and identifying market opportunities for American firms, advocating on their behalf, and encouraging corporate responsibility. CBA can help answer your questions and provide information on important issues such as corruption and bribery in overseas markets, U.S. export controls on sensitive equipment and technologies, and business-related visas for employees, partners and clients of U.S. firms. Entrepreneurship: In President Obama’s announcement on June 2009 in his Cairo speech, “A New Beginning,” and on the Presidential Summit on Entrepreneurship in April, the focus on global entrepreneurship is a growing element in our foreign economic and development policy. CBA incorporates this message with the Global Entrepreneurship Program (GEP), a vehicle to catalyze, consult and coordinate with partners (non-government partners such as NGOs, universities, foundations and companies), as well as to leverage existing U.S. government programs, principally with Department of Commerce, USAID, OPIC, SBA and the Millennium Challenge Corporation. Global Women’s Business Initiative: Promoting Gender Equity for Prosperity GWBI was launched to promote the success of potential high growth, high impact women-owned enterprises to foster growth in GDP and jobs globally. The African Women’s Entrepreneurship Program (AWEP at AGOA) is an initiative developed to encourage women entrepreneurs in 38 AGOA countries, and their networks in Africa, to become part of their national and the global supplier network, and to advocate with the 38 AGOA ministers to promote more inclusive legislation and practices. The Pathways Women’s Certification Program, created in Lima, Peru, is a second key initiative created to certify and integrate women-owned businesses into the supply chains of major American corporations. The third initiative is the APEC Women’s Leadership Network, an annual event to be held in Tokyo this year, where U.S. delegation of women entrepreneurs, corporate executives, NGOS and academics join to support trade with APEC member nations. Lorraine Hariton Special Representative for Commercial and Business Affairs Lorraine Hariton is the Special Representative for Commercial and Business Affairs, sworn in by Secretary Clinton on September 14, 2009. Her experience in innovation and entrepreneurship provides a unique perspective in addressing our global economic growth challenges. She is responsible for State Department outreach to the business community and commercial advocacy efforts. She works with the business community worldwide to ensure that commercial diplomacy efforts support U.S. foreign policy objectives. During her tenure, CBA has expanded cooperation and coordination with other trade promotion agencies and U.S. diplomatic posts overseas to support U.S. exporters and business interests in support of the President's National Export Initiative. Ms. Hariton has an M.B.A. from Harvard Business School and a B.S. in Mathematical Sciences from Stanford University.

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