medium of exchange

Examples of medium of exchange in the following topics:

• Functions of Money

  • The main functions of money are as a medium of exchange, a unit of account, and a store of value.
  • When money is used to intermediate the exchange of goods and services, it is performing the function of a medium of exchange.
  • To be widely acceptable, a medium of exchange should have stable purchasing power.
  • Gold was popular as a medium of exchange and store of value because it was inert.
  • Moreover, it must be predictably usable as a medium of exchange when it is retrieved.

• Types of Currency

  • The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold.
  • Currency refers to physical objects generally accepted as a medium of exchange.
  • The other part of a nation's money supply consists of bank deposits (sometimes called deposit money), ownership of which can be transferred by means of checks, debit cards, or other forms of money transfer.
  • Money in the form of currency has predominated throughout most of history.
  • Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, and candy.

• Choosing the Right Method for the Message

  • Meeting - A personal, interactive exchange often succeeded by a written follow-up; Letter - Typically a formal method of communication suited for important messages such as proposals, inquiries, agreements, and recommendations; Video Conference - Allows people in different locations to hold interactive meetings and interviews in real time; Telephone Conference - Enables participants in different locations to share information; E-mail - Instantaneous medium for both formal notices and updates, as well as, informal exchanges; Report - Official documentation of the activities of any department or organization; Presentation - Usually comprises a formal proposal, update, recommendation, or report involving audiovisual material, slideshows, and statistics; Web-based Communication - A method typically suited for leaving contact information (such as address and phone number) or for sharing transaction details (such as order confirmation); Forum: Allows members to post information publicly and efficiently in a centralized location.
  • This medium straddles the line between informal communication and formal business interaction.
  • Meeting - This is a personal, interactive exchange often succeeded by a written follow-up.
  • E-mail - This is a instantaneous medium for formal notices and updates, as well as informal exchanges.
  • When choosing the medium, consider the audience and their reaction to the message.

• International Exchange of Money

  • The foreign exchange market is a form of exchange for international currencies that determines the relative values of different currencies.
  • For example, an interbank exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥91 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥91.
  • In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency.
  • The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies.
  • The foreign exchange market determines the relative values of different currencies.

• Types of Advertising

  • There are many types of advertising; each has different attributes, such as price, viewing demographic, and medium.
  • There are many types of advertising; each has different attributes, such as price, viewing demographic, and medium.
  • The average cost of a single thirty-second TV spot during this game has reached $3.5 million (as of 2012).
  • Airtime is purchased from a station or network in exchange for airing the commercials .
  • Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal.

• Exchange Rates

  • The price of one country's currency in units of another country's currency is known as a foreign currency exchange rate.
  • Exchange rates can be quoted in two ways: (1) A direct quote, is to state the number of domestic units of currency per one unit of foreign currency; (2) If an exchange rate is an indirect quote, the exchange rate is stated as the number of foreign units per one unit of domestic currency.
  • People may need to exchange currencies in a number of situations.
  • A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market.
  • A market-based exchange rate will change whenever the values of either of the two component currencies change.

• Marketing exchanges and partnerships

  • In 2005, Barton A Weitz, Stephen B Castleberry, and John F Tanner published their book "Selling: Building Relationships" in which they discuss many of the aspects of modern business relationships, including market exchanges and partnerships.
  • Market exchange:
  • A market exchange is a type of relationship between a buyer and seller in which each party is only concerned about that particular party's benefit (Weitz, Castleberry, and Tanner, 2005).
  • You decide to make the seller an offer of USD 10 for the bench.
  • This transaction is an example of a solo exchange.

• Global finance: initial considerations

  • The price of one country's currency in units of another country's currency is known as a foreign currency exchange rate.
  • If an exchange rate is an indirect quote, the exchange rate is stated as the number of foreign units per one unit of domestic currency (Beenhakker, 2001).
  • The foreign exchange (Forex) market is the mechanism, which facilitates the purchase and the sale of foreign currencies.
  • Currency risk arises because exchange rates are volatile in the short and the long-term and the future movements of exchange rates cannot be predicted.
  • Swaps: A swap is an "agreement to exchange two liabilities (or assets) and, after a prearranged length of time, to re-exchange the liabilities (or assets)" (Butler, 2003).

• The Prevalence of Small Businesses

  • Industries with high concentrations of small and medium businesses generally do not require enormous capital investment up front.
  • Industries with a high concentration of small and medium-sized businesses (SMBs) generally do not require an enormous amount of capital investment up front.
  • The 80% of SMBs that reside in the service-providing sector is largely a reflection of the overall U.S. economy (services over goods), as well as the greater feasibility of service industries for small-scale entry.
  • The high concentration of SMBs in the service-providing sector also reflects a few realities of business.
  • Small businesses often begin in the services sector due to a number of factors.

• Defining international marketing

  • The pressures of the international environment are now so great, and the bases of competition within many markets are changing so fundamentally, that the opportunities to survive with a purely domestic strategy are increasingly limited to small-and medium-sized companies in local niche markets.
  • Perhaps partly because of the rapid evolution of international marketing, a vast array of terms have emerged that suggest various facets of international marketing.
  • Thus, how international marketing is defined and interpreted depends on the level of involvement of the company in the international marketplace.
  • Degree of commitment is expressed as follows:
  • The primary objective of the company is to achieve a synergy in the overall operation, so that by taking advantage of different exchange rates, tax rates, labor rates, skill levels, and market opportunities, the organization as a whole will be greater than the sum of its parts.