Author: Sheng Lu
Professor @ University of Delaware View all posts by Sheng Lu
FASH455 Global Apparel & Textile Trade and Sourcing
Copyright© 2012-2023 Dr. Sheng Lu, Associate Professor, Department of Fashion & Apparel Studies, University of Delaware
8 thoughts on “Scenarios on the Future of the International Monetary System”
The new international currency has transformed the world so much but each country has their own issues regarding debt. In each scenario one country fails has two others succeed. The US dollar use to be the strongest currency when we traveled their and exchanged our money we would have much more then what we gave. But now when we travel across the world we loose money in the exchange and buying goods there are much more expensive. In order to fix the economy the currencies of all countries would need to be equal but it is so hard for that to happen. In order to fix our problem we need to find away to make our currency dominate again. If scenario 3 was picked china would take over expanding trade all over. Scenario 2 would give us the dominating currency but trade would be dealt with in Iran. If Europe America and China don’t import and export then each countries currency and economy would improve and that would be the only was the industry would expand in the US again but it would be too hard to do.
Although money and the circulation of money has been an on going issue throughout the United States’ economy, I never thought about the actual currency and how it affects not only us, but other countries around the world. The three scenarios stated in this video will have some sort of a major effect on the U.S, EU, and China. The IMS system is starting to break because of the fast growing markets and EU’s new international currency. This means that a new system needs to be made; however, each one comes with restrictions. Although it’s inevitable, it is hard to think which one is the best to abide by. The way that the IMS system was successful before was when the U.S dollar and institutions dominated the financial links for the world. There has to be a way to make the U.S dollar back on top, but everything that is done will have an effect and consequence overseas. I am glad I watched this video because I was not aware of the future problems and outcomes of the international money system.
good thoughts. We didn’t have more time to discuss the movement of “capital” around the globe in the class although it is another important aspect of globalization. international trade needs rule to be regulated, so it is with the capital. Just like there is debate over free trade v.s. trade protectionism, there is debate over whether a country should allow free movement of capital across its borders too.
The different currencies of the world effect everyone. Everyday, the values of the dollar, pound, and yun change. The Euro is being effected by debt issues in countries like Greece and Italy. Although having a common currency is great, when events like these extreme debts occur, the whole EU monetary system suffers. Just a few years ago, the dollar was stronger than the Euro. Now, the Euro has constantly stayed more valuable than the dollar, leaving the U.S. at a disadvantage. Since the Euro has higher value, it makes imports cheaper, but exports more expensive. I think that the new trade agreement that Obama is talking about, will be beneficial to the U.S. and the E.U. It’ll create easier bilateral agreements then ones found under the MFA. I think that scenerio 3 would be worst case scenerio, I think it would cause chaos and neither the US or EU would prosper
good comment. We don’t have time to specifically discuss the international financial market & the exchange rate issue. I hope this video can be a supplimentary.
Having travelled to other countries i always knew the value of money constantly changes. With this video i could fully understand why and its impact on everyone. The IMS allows countries and companies to do business across borders but money moving faster than ever before the links between these countries has become a struggle. we have these global financial markets with no effective way of managing them, this obviously needs to change. Everyone is leaning on the mutli-polar system based on the Euro, Dollar and Yun. But each face a problem. I would say option 2 would be the best solution for the U.S because the value of the dollar is dominant. However this plan would effect overseas.
you can read the NY Times and see what actually is happening
This video was interesting to watch and was eye opening. As many issues there is about debt and politics in our country, it’s hard to focus on what other countries problems are. This video made me think about other places and what other things they go through, which could make a impact on all of us. I couldn’t say which scenario would I think would would be best, I believe the worst one though would be scenario one. scenario one is reversion to regionalism and capital would stay in our region would be bad. I think that we need money flow around the world and this is created by globalization (importing and exporting of goods) and this wouldn’t be beneficial, it would contain a problem in a region.