International Monetary System and Balance of Payment

INTRODUCTION The permutation of goods and services can be dated covering fire to the days of slavery when humans were traded in exchange for European fine arts. Subsequently the barter system was introduced at the field of study level in umpteen countries. However, as the trade securities industry increased internation bothy, there needed to be a communal exchange system that would be accepted by all trading countries. Gold was the demand and as such many countries accepted it as a common medium of exchange. patronage it acceptance on in the international market, many measure there were discontentment between trade elements as it was not a stable medium of exchange. A major crash that affects currency exchange rates is the Balance of Payments (BOP) of the various member countries. For this reason, governing bodies such as the IMF were established for member countries that may have difficulties keeping their Balance of Payment out of deficit. global MONETARY SYSTEM (IMS) -The IMS could be defined as the nerve of rules, customs, practices and institutions that deal with money - debts, payments, investments - by which countries value and exchange their currencies internationally -IMS be because most countries have their own currencies and because it is necessary to have since businesses must be conducted across international barriers.

-IMS also provides a mechanics for correcting the imbalances between a countrys international payments and its receipts. level OF INTERNATIONAL MONETARY SYSTEM The IMS spans three historical periods number one with the Gold regular, which functioned in the 19th and 20th Centuries and culminating with the floating exchange rate system, which has been in operation since 1973. GOLD STANDARD During the gold measuring Era all business transactions were settled in gold. The United Kingdom became the first to adopt the Gold Standard in 1821 to be followed in the 19th Century by other countries such as Russia, France,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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