As I enter my sixth week of the International Credit & Risk Management (ICRM) course, I'm gaining a deeper understanding about international trade credit, specifically the innerworkings of currency. Module 6 in particular, focuses on banking and currency terms and concepts. This is possibly the most anticipated module for me because it delves deeper into the financial aspects of global trade, something I've always been curious about.
In this module, I'm learning about the role of trade finance in international business transactions, financing techniques, primary financial participants, forms of countertrade and financing opportunities. One tidbit that interested me was the euro as an effective cross-border currency. According to the text, the euro is considered a domestic transaction, "thereby avoiding the cost and delays sometimes associated with international trade."The other thing that fascinated me was the idea of a world-wide currency, which the text hinted would solve financial injustice in an increasingly integrated global economy. There's a brief excerpt about the subject included in the module, an article called Perspective: One World, One Currency. It read, "A single currency would also be like a world language, improving communications around the globe. It would eliminate the present problems of speculation, instability and uncertainty and would provide a strong foundation for the growing world economy."
Although this sounds like a financial utopia, it brings awareness to the global financial needs for stability in currency and financial trade. All in all, I'm finding this module quite informative and insightful. I'm looking forward to completing it.
Until next time,
Jamilex Gotay, editorial associate