Commercial Transactions
Commercial Transactions
The focus in this book is more on commercial transactions—that is, those transactions that involve the buying and selling of foreign exchange to facilitate the trade of goods and services—than it is on financial transactions. Thus GM of Canada may have to convert U.S. dollars into Canadian dollars when parts or components that it produces in Canada are shipped to the United States. A U.S. parent company might receive Canadian dollar dividends from its Canadian operations that it must convert into U.S. dollars. A Canadian company might borrow Swiss francs and convert them into Canadian dollars to use for expansion of operations in Canada. Some of these transactions are financial in nature, but they relate to the commercial side of the business.
The focus in this book is more on commercial transactions—that is, those transactions that involve the buying and selling of foreign exchange to facilitate the trade of goods and services—than it is on financial transactions. Thus GM of Canada may have to convert U.S. dollars into Canadian dollars when parts or components that it produces in Canada are shipped to the United States. A U.S. parent company might receive Canadian dollar dividends from its Canadian operations that it must convert into U.S. dollars. A Canadian company might borrow Swiss francs and convert them into Canadian dollars to use for expansion of operations in Canada. Some of these transactions are financial in nature, but they relate to the commercial side of the business.
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