8. Forex.

The Foreign Exchange Market, where people buy and sell foreign currency, also referred to as the "Forex" market, is the largest financial market in the world.

Currencies are traded in pairs, for example Euro/US Dollar or US Dollar/Japanese Yen.

Foreign money held by a government to support its own currency. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign into their domestic currency. The other 95% is trading for profit, or speculation.

For speculators, the best trading opportunities are with the most commonly traded (and most liquid) currencies, called "the Majors". Today, more than 85% of all daily transactions involves trading pf the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.

Forex trading begins each day in Sydney, and moves around the globe as the business day begin in each financial center, first to Tokyo, London, and New York,. It's a 24-hour market, and investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

The Forex market is considered an over the counter (OTC) or interbank market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

9. Countertrade

Countertrade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. Later, many things served as money - beads, shells, dog's teeth, , stones and other.

Countertrade also occurs when countries lack sufficient hard currency, or when other types of market trade are impossible. For example Coburn Tool corporation, an American manufacturer of large and small machine tools and parts, gears, and bearings, was a major supplier to industries and companies world-wide. Because of the ride of the U.S. dollar on exchange market and serious financial crises in many of the countries in which Coburn did business, sale began to decline. A major market for Coburn’s products had until recently been Brazil. This serious problem seemed to have little solution because of Brazil’s chronic credit problems and lack of foreign exchange. In the fall 1984, however, a unique proposition was received at Coburn’s head office from a Brazilian commodities broker, in exchange for US gears, Coburn would receive the equivalent in Brazizilan shoes, which it could sell in the American market. Well, that’s is a good example of countertrade, when because of the lack of currency, one company offered other to exchange gears for shoes.

Role of countertrade in the world market.

In any real economy, bartering occurs all the time, even if it is not the main means to acquire goods and services. The volume of countertrade is growing. A large part of countertrade has involved sales of military equipment (weaponry, vehicles and installations).

More than 80 countries nowadays regularly use or require countertrade exchanges. Many countries use barter to help bad developing countries in Africa to purchase commodities, as thay have problems with currency.