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How to convert foreign currency

**Through the foreign exchange market**

**Exchange Rate**

the amount of currency of one country that can be traded for one unit of the currency of another country.

Currency Risk

**Investment value may change due to value of foreign currency**

1. Currency Control

***government-imposed limitations on the purchase and/or sale of currencies***

Hard Currency

 **easy to exchange**

Soft Currency

**hard to exchange**

**Floating currency**

**currency based on supply and demand**

1. Why currency increases or decreases in value 

**If the demand of the currency increases, its value goes up**

* **Ex: due to political stability, increase in exports, etc**

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**If the demand of the currency decreases, its values goes down**

* **Ex: political instability, high inflation, high interest rate, $$ products**

1. Statutory law

* **Laws made by lawmakers (cannot violate written law)**
* **Ex: drinking age or driving age**

Civil law

**A complete set of rules enacted as a single written system or code (the constitution)**

Common Law

* **Developed by judges based on past similar trials.** 

1. Strict Liability

**Imposes responsibility on a manufacturer or seller for intentionally or unintentionally causing injury to another.**

6 conditions:


1. The product was sold in defective condition.
2. The seller is in the business of routinely selling the product.
3. The product reached the user without having been substantially changed. 
4. The product was unreasonably dangerous to the user.
5. The user of the product or a bystander suffered harm or injury by using the product.
6. The defect was the primary cause of the injury.

1. Intellectual Property

**a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.**

Patent

* **a document giving owner sole right to a product/idea**

**Trademark**

*  **an element that identifies a good/service**

**Copyrights**

*  **anything authored by an individual**

1. Components of a contract

* Mental capacity
* Legal Purpose
* Mutual agreement
* Consideration of both parties

Mediation

* A dispute resolution method that makes use of a neutral third party. 
* A mediator attempts to reconcile the viewpoints of the disputing parties.
* Makes suggestions and proposals

Arbitration

* A method of conflict resolution that uses a neutral third party to make a binding decision. 
* Unlike a mediator, an arbitrator's decision is legal and binding on both parties.
* An arbitrator acts as a private judge at a location of the disputing parties’ choice and establishes procedures and rules of evidence.  

2 types of contracts

* Implied
* Expressed