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American University

Chapter 1 International Financial Markets:Basic ConceptsIn daily life, we find ourselves in constant contact with internationally traded goods. If youenjoy music, you may play a manufactured CD of music by a Polish composer througha Japanese amplifier and British speakers. You may be wearing clothing made in China oreating fruit from Chile. As you drive to work, you will see cars manufactured in half a dozendifferent countries on the visible in daily life is the international trade in financial assets, but its dollar volumeis much greater. This trade takes place in the international financial markets.

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