East Asia is prepared to forgo better returns in order to keep its exchange rates down and export demand up.
The alternative, a foreign-owned holding company, must operate under tight restrictions that forbid, for example, inter-company loans, foreign-exchange balancing, import-export, or even consolidated accounts across the subsidiaries.
Whether it was efforts to internationalize exchange in services, symbolized by a burgeoning export of medical services, as people came from all over the world for high-quality medical procedures.
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It ought to be poised for an export-led boom: it has a hugely competitive exchange rate, good infrastructure and has had a decade of high investment in plant and machinery.
And most companies that export have been worried by South Africa's previously wobbly exchange rate.
Since July the State Administration of Foreign Exchange (SAFE) has demanded more information on export earnings.
Mineralco believes that the exchange could make emeralds Colombia's third-biggest export, after oil and coffee.
Moreover, German export success for the past decade has been built on the weaker, more competitive exchange rate that came with sharing a currency with southern Europe.
The step faces several pitfalls, though, and could have unintended consequences, including an unstable exchange rate or a strengthening currency that hobbles the country's nascent export sector just as the country is re-entering the global economy.
The government's export credit agency, the Export Credits Guarantee Department (ECGD), will launch an Export Working Capital Scheme, a Bond Support Scheme, and will support banks offering foreign exchange hedging contracts to SMEs by sharing credit risk.
An exchange of ambassadors could lead to Vietnam getting Most-Favored Nation trading status and Export-Import Bank loans, critical for buying high-priced items such as aircraft.
He did not call for exchange rate targets but there will be international concern that, as countries jostle for export markets, a battle over currencies will follow.
Governments cannot use the exchange rate to help the economy adjust to outside shocks, such as a fall in export prices or sharp shifts in capital flows.
In the public sector, Bill Casey served as Chairman of the Securities and Exchange Commission, Undersecretary of State for Economic Affairs and President of the U.S. Export-Import Bank.
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