To dr. clover (first response needed for unit 2 week 1)



Assignments 1-4 are very interesting some question are. how will I learn in detail about how the foreign markets really work? How will I learn the value of foreign currency? What defines an executive summary? My initial thoughts for the IP5 assignment was wow! How can I bring all this information together to produce an effective paper? How much time will it take? Will the answers justify the content needed? What is European union? How will I approach this assignment? My approach to this assignment will be to utilize the AIU Library databases EBSCO, ProQuest, .gov, and .org. sites to study and research the most current events as it relates to European unions.

Explain the differences between domestic banks and international banks.

Domestic banks are banks that operate within their country while international banks operate in multiple countries. The domestic banks are required to adhere to the local laws of the country they are in, international banks must follow the laws of the countries in which they are partnered with and the laws related to transactions between countries.  Domestic banks are not impacted by fluctuations in foreign currency rate whereas an international bank are.  (Surbhi, 2016).

International banking is by far the most popular. It easier for people to use them because of all the perks they provide.  Being that it lends and borrows on international markets and is not affected by high interest rates. People use international banking for various reason, one being they can hide their money offshore in accounts, so they want lose it in case of a lawsuit. International banks also make it easier for a company with an international presence to do business around the world. They offer letters of credit to ensure that companies in different countries pay one another for goods and services. They also offer financing services to support businesses facing the large costs of importing and exporting products (Trade, 2018).

How do U.S. companies use international banks?

Us companies use international banks in a variety of ways first to borrow money from them and then invest it in other ways. They also do business with international banks to help facilitate international business, that can otherwise cost a lot. Other reasons are to avoid paying high taxes on the monies they borrow. International banks are credible sources of financial services in the US, it accounts for 25 percent of banking assets and one third of all loans to businesses in the United States  (Trade, 2018). International banks make up a third of the main dealers in the Treasury market, playing a critical role in how the US financial markets function and how the government funds itself. They also comprise two of the top three commercial agricultural lenders in America.

Surbhi. (2016, June 15). Key Differences. Retrieved from Key Differences: /

Trade, G. (2018). Global Trade. Retrieved from Global Trade:

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