1. International Business Chapters 7 and 8 Foreign Exchange, International Finance, and Legal Agreements Around the World

2. CH. 7 - MONEY
What is money?
Money – anything people will accept for the exchange of goods and services
Serves three main purposes:
Medium of exchange – makes business transactions easier
Measure of value
Store of value – can be saved for future spending

3. FOREIGN EXCHANGE
Foreign exchange – process of converting the currency of one country into the currency of another country
Exchange rate – amount of currency of one country that can be traded for one unit of currency of another country

4. ¢urren¢ie$

5. FOREIGN EXCHANGE ACTIVITIES
Soft currency (weak) – a currency that is not easy to exchange for other currencies
Typically from developing economies
Hard currency (strong) – monetary unit that is freely converted into other currencies
Examples include: Japanese yen, Canadian dollar, the Euro, and U.S. dollar

6. CHANGING EXCHANGE RATES
Floating exchange rate – a system in which currency values are based on supply and demand
Foreign exchange market – the network of banks and other financial institutions that buy and sell different currencies
Currency option – contract a person or company buys that allows the buyer the option to purchase a foreign currency sometime in the future at today’s rate

7. INTERNATIONAL FINANCIAL AGENCIES
The World Bank – bank whose major function is to provide economic assistance to less developed countries
International Monetary Fund (IMF) – agency that helps to promote economic cooperation by maintaining an orderly system of world trade and exchange rates

8. CURRENCY CHECK
Find 5 currencies besides those listed in the Family Feud
Report out to your tables what the currency is called and which country uses it

9. CH. 8 – PROPERTY RIGHTS & RESPONSIBILITIES
Property – everything that can be owned
Three main categories:
Real property – land or anything built or attached to land
Personal property – tangible, but does not have a permanent location
Intellectual property – based on ideas (such as patented inventions, trademarks, copyrights, etc.)

10. PICK 6
Select 6 items you consider your property. Classify each as either real, personal, or intellectual.

11. PROPERTY LAW
Property rights – exclusive rights to possess and use property and its profits, to exclude everyone else from interfering with it, and to dispose of it in any legal way
Intellectual property – technical knowledge or creative work that an individual or company has developed
World Intellectual Property Organization (WIPO) – agency that coordinates various international treaties designed to protect patents, trademarks, copyrights, and other intellectual property
Part of the United Nations
Over 170 nation members

12. INTELLECTUAL PROPERTY TYPES
Patent – Exclusive right of an inventor to make, sell, and use a product or process
To be protected, a product or process must be new and useful
Once the patent expires in the U.S., it cannot be renewed unless a new improvement or design is incorporated
Limited time: ranging from 5 – 20 years (depending on country)
Company must apply for patent rights in EACH country
Patent Cooperation Treaty – more than 40 countries that allow one single application for patent coverage

13. EXAMPLE PATENTS iPhone Quadcopter drone Electronic device
Product
Patent name
iPhone
Quadcopter drone
Electronic device
Omni-directional, vertical-lift, helicopter drone

14. INTELLECTUAL PROPERTY TYPES
Trademarks – a distinctive name, symbol, word, picture, or combination of these that is used by a business to identify its services or products
® - represent a registered trademark in the U.S.
To remain protected, it must be in continual use and must continue to be identified with the original business
Once the term becomes accepted to mean all things of that kind, it is no longer protected
Ex:// T-shirt, Aspirin, App store, Zipper
Covered by several international agreements:
Paris Convention of Industrial Property
Madrid Agreement of 1891
European Union

15. FIND AND SEEK
Using your own personal property and items located around the room, locate 5 registered trademarks.

16. INTELLECTUAL PROPERTY TYPES
Copyright – legal right that protects the original works of authors, music composers, playwrights, artists, and publishers
Originator has exclusive rights to publish, sell, and exhibit their creative work for their lifetime PLUS 70 years.
Must be an original and fixed expression
© - symbol that represents a copyright notice and must be followed by the name of the copyright owner and date of publication

17. ILLEGAL USAGE
Counterfeit – made in exact imitation of something valuable or important with the intent to deceive or defraud
Piracy – illegal use of intellectual property

18. RESOLVING LEGAL DIFFERENCES – WITHOUT COURT ACTION
Mediation – dispute resolution method that makes use of a neutral third party, or mediator, who offers a non-binding decision
Arbitration – method of conflict resolution that uses a neutral third party to make a binding decision

19. RESOLVING LEGAL DIFFERENCES – USING COURT ACTION
Litigation – lawsuit brought about to enforce the rights of a person or an organization or to seek a remedy to the violation of their rights
Class-action suit – several parties (individuals or organizations) take legal action as a group
International Court of Justice – court that settles disputes between nations when both nations request that it do so and also advises the United Nations on matters of international law

20. LOGO CHALLENGES