Spanish

International Trade- How does it occur?
Some countries may accept U.S Currency but many demand payment in native currency. its logical because i wouldnt accept payment for work in british pounds.
Capital flows in and out of countries based on investment opportunities in that country vs. another.
the flow of international capital into and out of the U.S is determined by the returns offered in the U.S. Vs. those of another country

Exchange Rate
Number of unites of foreign currency that can be exchanged for on unit of domestic currency
affects the level and destination of U.S. ag exports and imports

Market equivalents
We use Xchange rates to convert international market prices to domestic currency equivalents.
For example. the exporters currency declines in value. Importers cost of foreign xchange decreases. lowers the price of commodity in import market, thereby increasing quantity demanded. Mex importers and U.S. Exporters are happy. world prices increase. induced exporters to increase sales

Weak Vs. Strong
a currencys value relative to antoher currency may change from day to day or minute by minute.
Weak- currency is worthless relative to another nations currency (3 pesos to every dollar)
Strong- currecny is worth more relative to another nations currency

Currency Appreciation
currency may gain or lose value relative to another nations currency.
Appreciation refers to an increase in foreign price of a domestic currency

Currency Depreciation
refers to a decrease in foreign price of a domestic currency
example
12/8 1 us dollar equals 2.76 BRL
12/9 1 us equals 2.75 BRL