Important Points for IC 89 - Management Accounting Exam
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The international monetary system which is a pre-requisite for world-wide transaction of goods, services and finance facilitates: Transfer of funds, between the international parties; Conversion of national currencies into one another; Acquisition and liquidation of financial assets and; International Credit creation and realisiation.
The enormity and all-pervasiveness of global financial market has brough the use and application of international finance.
In 1947 the General Agreement on Tariffs and Trade(GATT) was established in order to improve world trade. It removed the trade barriers notably over the years, as a result of which international trade grew manifold.
The GATT was signed in 1947 and continued until 1994, when it was replaced by the World Trade Organization (WTO) in 1995.
The 2007 financial crisis originated from within the United States and other advanced nations of the west due to: Growing securitisation of non-performing assets, Large fiscal deficts and Excessive lending in the housing sector there entailed and affected th whole of the world.
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