Harmonize their tax, monetary, and fiscal policies and create a common currency.

Agree to treat trade with all non-member nations in a similar manner, by having a common external tariff

Accept a common stance on economic and political policies regarding non-member nations.

Agree to the free movement of all factors of production.

Multilateral

Global

Economic

Bilateral

Lack of demand for traditional exports

Excessive use of traditional media in foreign markets

Data privacy and algorithmic bias in platform governance

Underpricing in competitive markets

Delegating localization to third-party vendors to ensure operational neutrality.

Launching in the low-trust market first to gain first-mover advantage.

Adapting platform features, user engagement, and messaging to align with local social norms and trust patterns.

Implementing uniform design and marketing to build a consistent global brand image.

Automation removes the need for differentiated strategies in global markets.

Industry 4.0 limits strategic flexibility by centralizing all decision-making.

Advanced technologies support international agility by lowering transaction and coordination costs.

Digital systems replace the strategic role of foreign subsidiaries.

Speculation

Hedging

Swap

Arbitrage

Spot market trading

A currency swap

Arbitrage

Increasing foreign exchange risk

The foreign producers are raising the prices of their exports

Prospect of retaliation

The foreign country restricting its exports in that industry

The foreign producers seeking other markets

To limit the choice of products available to customers

To encourage each country to adopt identical political systems

Productivity gains and economic growth 

To reduce the selling prices of products

economies of scale will reduce cost

workers become more efficient through specialization

the country will forgo producing its less efficient output in order to produce its more efficient output

there will be more incentive to develop cost-saving technologies