International Financial Management Essay Example | Topics and Well Written Essays - 1500 words

International Financial Management - Essay ExampleTo the common man trade is simply the exchange of goods and services between cardinal individuals, groups, and organizations. When trade begins to happen across regional boundaries it is categorized as international trade. Modern day phenomenon such as advancement in technology and globalisation urinate allowed for international trade to happen at a much faster rate over a much larger scale. For this trade to lead smoothly and in order to avoid confusion and chaos regulation and systematic order are extremely important. For this reason regions join hands to bring out trade blocs and trade regions which not only allow for a more efficient process but help both the trader and the buyer.In this adjudicate we will be discussing the role of two trading giants, Organization of the Petroleum Exporting Countries(OPEC), and North American Free Trade Agreement (NAFTA) both of whose presentation caused dramatic changes to the way modern ag e trade is conducted. Before moving forth it is essential to differentiate between a trade region and a trade bloc. A trade region is essentially an agreement establish on regional boundaries. Member countries join such a region based on their geographical location and hence enjoy many trade privileges. An example of a trade region is NAFTA where North American countries come together to form member states. A trade bloc maybe a trade region but it is not necessary since members are made not on geographical proximity but based on ownership of common assets. An example of a trade bloc is OPEC where countries exporting petroleum have come together to ease trade.OPEC was established when five countries (Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela) signed a trade agreement in Baghdad in folk 1960. These five countries were then known as the founding members for this organization and were in later years joined by many more countries. Gabon and