International Transactions Research Articles

Analysis of Exchange Rate Stability on the Economic Growth Process of a Developing Country: The Case of South Africa from 2000 to 2023

This study examines the impact of exchange rate stability on the economic growth of South Africa from 2000 to 2023, a period characterised by significant political and economic changes. Exchange rate stability is critical for developing countries, affecting key macroeconomic variables such as trade balances, foreign direct investment (FDI), and inflation. For emerging economies like South Africa, maintaining a stable exchange rate can reduce uncertainty in international transactions, foster investor confidence, and support sustainable economic development. This research explores whether consistent exchange rate management has positively influenced South Africa’s economic trajectory, particularly by mitigating the adverse effects of global shocks and domestic volatility. Using the EasyData online database, which contains yearly time series data, the method of analysis adopted by the research is the ordinary least squares (OLS) regression method. The findings show that while exchange rate stability positively impacts GDP, the influence of FDI and political risk is more substantial. These results underscore the importance of fostering a stable economic environment through sound exchange rate policies, political stability, and efforts to attract foreign investments to ensure long-term economic growth.

Importance of English in Commerce from International Perspective

English is a widely spoken language, which is used in day-to-day transactions in international sphere. Without English international communication can’t happen smoothly and there lies the importance of English. Present research paper will try to understand the importance of English in commerce from international perspective and the solution over the problem where still the knowledge of English is not provided and thereby commercially those people are backward due to barrier of language. Commerce is a very important sector, which deals with monetary transactions, sales and marketing, portfolio investments and all banking transactions. When you think about International Commerce you see the communication is purely business but it involves English extensively. In international transactions English is a barrier to those who don’t know the language and for the people who are fluent in English, for them it is like their mother tongue. English and Commerce are two different sectors, but in international sphere they are interdependent. Mere commercial transactions won’t run successfully if you can’t communicate in English. So, it’s very important that the people who are involved in Commerce sector should have sound knowledge of English and they should fluently able to communicate in English. In this research paper, we will find the difficulties faced by the people involved in commerce sector while dealing with English and will try to find out the solution over this.

Event log extraction methodology for Ethereum applications

The adoption of smart contracts in decentralized blockchain-based applications enables reliable and certified audits. These audits allow the extraction of valuable information from blockchains, which can be used to reconstruct the execution of the application and facilitate advanced analyses. One of the most commonly used techniques in this context is process mining, which leverages event logs to trace and accurately represent the process execution of applications. However, extracting execution data from blockchains poses significant challenges, and the current methodologies developed have some limitations. Most approaches are tailored to specific use cases, requiring that analysis techniques are defined during the smart contract’s development. Other techniques are applied a posteriori, relying on blockchain events that often lack a standardized format. This absence of standardization requires complex processing steps to correlate logs with the executed actions and such approaches are not universally applicable to all smart contracts on the blockchain, further limiting their scope. Lastly, none of the existing techniques can extract information from event logs embedded in internal transactions of smart contracts.To address these limitations, we propose EveLog an application-agnostic methodology that can be applied to any EVM-compatible application without predefined constraints. Its primary goal is to extract information from smart contracts, capturing both public and internal transactions, and organizing the results into a structured XES event log. The EveLog methodology consists of five key steps: (i) extraction of data from smart contract transactions, (ii) decoding raw data, (iii) selection of sorting criteria, (iv) construction of traces, and (v) generation of the XES event log. EveLog has been implemented in a client–server application and tested on existing solutions, specifically the CryptoKitties application, a blockchain-based game on the Ethereum blockchain. The study was conducted using 12,996 blocks, including over 8000 real transactions from the Ethereum mainnet.

Current legal activities come to the complexity of the term "electronic commerce": international and national level

The article provides a comprehensive study of various approaches to defining the term «electronic commerce» in the context of modern legal, economic and technological challenges. The analysis begins with an overview of scholarly perspectives on e-commerce, which range from narrow interpretations that focus on basic online sales contracts to broader concepts that encompass all aspects of electronic interaction between business entities, including logistics, marketing, financial operations and international transactions. The term «e-commerce» is clearly distinguished from related concepts, such as «e-commerce», «e-business», which mostly focuses on the sale of goods and services. The article also explores the positive aspects of e-commerce, such as increasing the efficiency of business processes, reducing transaction costs, access to global markets, increased convenience for consumers, etc. At the same time, a number of negatives have been identified, including the risk of personal data theft, payment fraud, and other types of cybercrime. The normative regulation of electronic commerce at the level of international law and in Ukraine is separately analyzed. The main legislative acts and their impact on the development of e-commerce are highlighted. On the basis of the conducted research, three key criteria for a clear definition of e-commerce are formulated, including legal relations arising through electronic means, interaction of entities through the Internet, and multi-level business processes, namely: basic e-commerce, integrated e-commerce and global e-commerce. As a result, a proper understanding of e-commerce as a form of business activity is proposed, which involves the implementation of commercial transactions using information and telecommunication means, covering a wide range of processes, including the conclusion and execution of contracts for the sale of goods and services, payment processing, logistics, marketing and advertising , as well as management of currency and customs operations during international transactions, which allows to increase business efficiency and reduce costs due to process automation, optimization of resource management, rapid exchange of information, reduction of transaction costs and simplification of communication between market participants.

Wholesale Central Banks Digital Currencies and New Opportunities for Interbank Settlements with the Prospect of Entering International Transactions

A new generation of digital technologies that make it possible to speed up settlements and reduce their cost was born from crypto-currency projects, but the prospects of their economically effective and socially responsible application associate with central bank digital currency. The article discusses the issues of digitalization of central bank money in relation to interbank settlements, including for servicing cross-border payment turnover. So far, this topic has not found a significant response in Russian scientific journals. This publication aims to popularize it by summarizing and analyzing examples extracted from foreign experiments. The advantages of digitalization are compared with the capabilities of conventional payment systems. Descriptions and comparisons of the architectures of the new generation payment system are given, in the range of which it is possible to choose compromises between benefits, risks and costs in the search for the optimal solution. In conclusion, the prospects for the transition to an experiment with digitalization of wholesale payments in Russia are assessed following the upcoming introduction of the “retail” digital ruble

Analyzing Common Trade Risks Faced by Tanzanian Traders in International Transactions: A Case Study of Dar es Salaam Importers and Exporters

International trade is fraught with inherent risks that can significantly impact the efficiency and success of cross-border transactions. Tanzanian importers and exporters, particularly those navigating the complexities of the Dar es Salaam port, face challenges such as shipment delays, vague contract terms, and financial disputes. This study delves into how the strategic application of International Commercial Terms (Incoterms) serves as a powerful risk management tool, offering clarity and structure to international trade agreements. Utilizing a descriptive research design, we surveyed 96 traders and conducted in-depth interviews to capture their experiences with trade risks and their understanding of Incoterms. The findings reveal a widespread gap in formal training on Incoterms, leading to frequent logistical issues and contractual ambiguities that could otherwise be mitigated. This research highlights the urgent need for targeted educational programs to enhance traders’ knowledge of Incoterms and improve the overall efficiency of Tanzania’s trade environment. By embracing these standardized terms, Tanzanian traders can transform risks into opportunities, positioning themselves as key players in the global trade ecosystem. The study concludes with actionable strategies for improving Incoterm adoption and presents a roadmap for strengthening Tanzania’s competitive edge in international commerce.

Time Series Analysis of the Connection between Exchange Rate of EUR/USD, Bond Yields, and Trade Growth

In the context of the growing importance of global trade, the US dollar plays a crucial role as the currency for international transactions. The exchange rate of the dollar and the monetary policies of other countries influence each other. This study delves into the connection among the exchange rate of Euro/United States dollar (EUR/USD), the 10-year government bond rates with the international trade growth rates of 20 European countries from January 1991 to December 2016. By employing descriptive statistics, correlation analysis, regression modeling, and time series analysis, this research aims to uncover the underlying dependencies and predictive insights among these financial variables. The results indicate that the EUR/USD exchange rate has an insignificant impact on bond yields (R = 0.003), suggesting that other factors such as monetary policy, inflation expectations, and market liquidity play more significant roles. However, a weaker currency is linked to lower growth rates is shown by a strong negative correlation for the exchange rate and trade growth rates (R = 0.210). The multivariate regression model shows that bond yields and trade growth rates together explain 44.5% of the exchange rate variations, highlighting the interconnections among these economic variables. These findings highlight the necessity for policymakers to take these interconnected factors into account when developing economic and monetary policies to ensure stable and sustainable economic growth.

The Evolution of the International Monetary System: Impacts on Multinational Firms and Global Trade

The International Monetary System is a global system that regulates money transfers between different nations. It includes currency exchange rates, regulation of international payments, legislations on capital movements, and worldwide financial organizations, including the IMF. The paper analyses how the change over time of the International Monetary System (IMS) affects the international trade and MNCs. Thus, from the Bretton Woods new exchange regime established in 1944–1971 to the current floating exchange rate system, it has been analyzed in regard to the IMS's historical development. Because of the increasing volatility in the currency rate, this has consequently had an impact on the stability of international transactions and trade volumes. The IMS study investigates exchange rate systems, capital flow regulations, and the role of international financial organizations, including the IMF. For its methodology, the study resorted to a mixed-method approach, combining numbers analysis-that includes regression models and time- series data on exchange rates, amounts of international trade, and MNC performance-with analysis of the historical record and inspection of IMF policy documents. The study shows that trade goes down during big financial troubles, like the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008. It also shows that changes in exchange rates make global trade smaller, especially during these crises. Also, while IMF help, such as structural adjustment programs, often causes short-term problems for multinational companies (MNCs), like less foreign direct investment (FDI), these policies usually help stabilize economies and lead to recovery in the long run. The outcomes indicate how the IMS, international trade, and multinational corporations are intertwined. Acquainting oneself with the fluctuating money system is very crucial because it enables a person to make informed decisions about the world economy. Keywords: International Monetary System (IMS), Exchange Rate Volatility, Multinational Corporations (MNCs), International Trade, International Monetary Fund (IMF)

The Role of English Language Proficiency in the Global Economy and Business Communication

This research explores the role of English as a lingua franca in international business, focusing on its impact on business operations, economic communication, and cross-cultural interactions. The research objectives include understanding the relationship between English proficiency and business success, identifying common cross-cultural communication challenges, and exploring strategies to improve communication in global markets. Using a qualitative methodology, data was gathered through Semi-structured interviews conducted with 10 key informants, including 2 managers, 2 executives, and 6 employees from 2 multinational corporations and 2 small businesses that operate in global markets. Key findings indicate that higher English proficiency enhances business outcomes, while cross-cultural communication barriers often complicate international transactions. The study concludes that businesses should invest in language training to boost competitiveness and mitigate communication challenges in global operations.

LEGAL ASPECTS OF A BANK GUARANTEE AS A FINANCIAL SECURITY INSTRUMENT

A bank guarantee is an important instrument for securing financial obligations in legal transactions, creating security and trust between the contracting parties. This paper analyzes the legal aspects of a bank guarantee as a security interest, including its legal nature, types of guarantees, as well as the rights and obligations of the contracting parties. Special focus is placed on the analysis of domestic legislation in the Republic of Serbia and comparative legal practice, highlighting the similarities and differences of approaches across different jurisdictions. The paper also examines the role of bank guarantees in international transactions with reference to relevant international conventions and regulations, especially in the context of globalization of markets. The aim of the paper is to provide a comprehensive overview of the legal framework that governs the issuance and enforcement of bank guarantees and to identify challenges and opportunities for improving this financial instrument in practice. Based on the analysis, recommendations are made for legal entities to optimize the use of bank guarantees in business transactions.

Study on the Measurement and Evaluation of the Domestic Circular Development Level of China's Economy

Since reform and opening up, China has actively promoted the development of the international economic cycle, but there are still some areas that are at a disadvantage in the value and supply chain in long-term international transactions. Although the New Crown epidemic has had a huge impact on the global economy, the domestic economy has gradually recovered and international trade has recovered. Against this background, General Secretary Xi Jinping has proposed to accelerate the construction of a new development pattern “with the domestic cycle as the main body and the domestic and international cycles promoting each other”. This paper takes the demand side of the domestic cycle of China's economy as the entry point, selects the consumption base, consumption willingness, consumption structure and other specific indicators of 31 provinces in China from 2015 to 2020, and adopts the entropy value method to study China's domestic cycle at this stage. The study finds that (1) there are obvious regional differences in China's economic domestic cycle, and the eastern and central regions are important contributors to the domestic cycle; (2) the development of China's economic domestic cycle is in a positive trend after the epidemic; (3) the level of economic exchanges between regions is low, and there is the problem of unbalanced and insufficient development. An in-depth understanding of the role and pattern of China's economic double cycle in the domestic economy will help grasp the actual level of the new development pattern.

Enhancing cross-border payments: The convergence of AI and blockchain for currency exchange optimization

The integration of Artificial Intelligence (AI) and blockchain technologies holds transformative potential for cross-border payment systems, particularly in the realm of currency exchange. This paper explores how AI's predictive capabilities, combined with blockchain's secure and transparent ledger, can significantly enhance the efficiency and security of currency exchanges in international transactions. Through the use of advanced predictive models like ARIMA and LSTM networks, AI enables the forecasting of currency trends, facilitating preemptive decision-making that can protect against exchange rate volatility and improve transaction value. Concurrently, blockchain technology ensures the integrity and trustworthiness of these transactions by providing a tamper-proof recording mechanism. This synergistic application not only minimizes the risks associated with currency fluctuations but also streamlines operational processes, yielding a more reliable and user-friendly cross-border payment experience. This study aims to quantify the benefits of integrating AI and blockchain in reducing exchange rate risks and improving operational efficiencies, offering a novel perspective on the future of financial transactions in the global economy.

Innovation in Compensation Payments

The growing economic influence of cryptocurrency and the development of the associated infrastructure has brought about an interest in the new areas of its application. Payment of compensation in cryptocurrency is one such evolving application of cryptocurrency. Using a qualitative research design, we attempt to identify the factors and ecosystem constituents that play an important role in the diffusion, adoption and use of cryptocurrency as a compensation medium. A hybrid methodology involving both inductive and deductive methods of qualitative inquiry was used to develop the themes. The study identified nine main factors that influenced a participant’s decision to accept compensation in cryptocurrency. They are: (1) the prospects of high return; (2) ease of transaction; (3) faster international transactions; (4) price volatility of cryptocurrencies; (5) threat of hacking; (6) taxation policies of the country; (7) lack of recognition as legal tender; (8) influence of peer groups; and (9) influence of celebrities. The inductive part of the study enabled the mapping of the major stakeholders involved in the decision, namely, the government, the employer, the peer groups of the employee, celebrities and the cryptocurrency-issuing company.

Does environmental, social and governance performance affect acquisition premium?

PurposeFrom a target perspective, this paper aims to examine the impact of environmental, social and governance (ESG) performance on mergers and acquisitions (M&A) transaction valuations.Design/methodology/approachThis paper uses a sample of 629 international transactions conducted between 2002 and 2020. Ordinary least squares (OLS) regression was applied by using ESG aggregate score and the three ESG pillars: environment, social and governance.FindingsThis paper finds that the ESG performance of targets has a negative and significant impact on acquisition premiums. However, this paper finds that targets receive lower premiums by increasing their ESG score, suggesting that targets would do better to focus on ESG to increase shareholder wealth. Thus, results of this paper support the view that ESG-focused firms create shareholder value through the M&A process. Furthermore, results of this paper indicate that environmental and social aspects of ESG drive the acquisition premium. The governance score does not seem to be related to acquisition premiums.Originality/valueTo the best of the authors’ knowledge, this study is the first study to assess whether ESG performance impacts the valuation of M&A transactions by decomposing ESG into its three components.

Internal dispute resolution systems: Do high promises come with higher expectations?

AbstractWhen e-commerce appeared in the 1990s it brought with it disputes related to its operation. E-commerce is risky as the contracting parties do not even know each other, not to mention the fact that disputes have additional legal difficulties concerning jurisdiction and applicable law. However, e-commerce websites have worked out online dispute resolution (ODR) systems in order to maintain the trust of their users, employing an efficient and impartial method if problems arise from deals made on their website. These internal ODR systems are considered successful as they are faster, cheaper and more appropriate than asking for remedy from the courts.As online marketplaces resolve tens of millions of disputes a year, their influence cannot be avoided. The traditional court system fails to protect consumer rights in high-volume and low-value international transactions in practice. This circumstance raises the question of whether internal dispute resolution systems of private e-commerce sites could develop in such a way that fulfils the minimum procedural fairness requirements for dispute resolution and that is acceptable according to substantial laws. Is justice served in online disputes? Who is responsible for making just decisions, and to what extent can ODR procedures be expected to meet the principles of traditional civil proceedings?

THE ADEQUACY OF THE LAWS REGULATING ELECTRONIC BUSINESS IN JORDAN

The rapid advancement in communication and information technology has significantly reshaped the landscape of electronic business, encompassing e-government, e-commerce, and digital consumer interactions that transcend global boundaries. This development has necessitated a parallel evolution in legal frameworks worldwide to address the new realities of digital transactions and governance. The Hashemite Kingdom of Jordan, recognizing the imperative to adapt to this dynamic environment, has embarked on updating its legislative structures to better align with the emerging demands of the electronic business sector. This research aims to critically examine the current legal provisions in Jordan governing electronic business, assess their effectiveness, and explore potential gaps that may hinder the sector's development. Furthermore, the study will consider international treaties and agreements that Jordan could potentially join to bolster its electronic business sector and attract more investment. By comparing Jordan's legislative adaptations with global legal trends, this study seeks to highlight best practices and propose recommendations for enhancing Jordan's legal framework for electronic business. Additionally, the research will delve into judicial applications relevant to the electronic business to provide a comprehensive overview of the legal landscape and its practical implications. The analysis has revealed that the national laws need to be continuously updated to incorporate emerging technologies and new business practices. This is especially critical in areas like electronic privacy, data protection, consumer protection in the digital space, and the regulation of electronic signatures and transactions. Furthermore, despite Jordan's efforts to adapt its legal system to support electronic business, there is a pressing need for more comprehensive legislation that covers all aspects of the digital economy, including but not limited to, e-government services, e-commerce, and cybersecurity. Internationally, while Jordan has engaged with some treaties and global norms, there is a broader scope for integration into international legal frameworks that govern electronic commerce. Such engagement would not only enhance the legal robustness of Jordan's electronic business sector but also build investor confidence and facilitate smoother international transactions. As Jordan continues to develop its digital economy, it is imperative that its legal framework evolves correspondingly to support sustainable growth, protect stakeholders, and ensure compliance with international legal standards. This will not only benefit the local economy but also position Jordan as a competitive player in the global digital marketplace.

English as a Lingua Franca in Global Business: Balancing Efficiency and Cultural Sensitivity

This work focuses on English as an international business lingua franca in the realisation of effective international communication and collaboration. A globally integrated market has seemingly perceived English as an imperative medium in order to eliminate the barrier of language and play a facilitative role for multinational ventures; it adds an edge in organisational performance among diverse cultural landscapes. The dominance of English, on the other hand, also means that potential linguistic inequities might be bred, and the subtleties in the cultural differences might go on unnoticed. The study adopts a qualitative paradigm, through which it uses structured questionnaires to elicit insights with respect to the pros and cons associated with using English as the second language in business environments. Participants mentioned that English facilitates international transactions, helps in bringing the unity of diversified groups in terms of language, and supports the strategies of worldwide businesses. Critics say that a cavalier attitude towards non-native speakers will dominate and crop up as cultural insensitivity. Therefore, the findings in this article highlight that while English as a Lingua Franca may have innumerable advantages in worldwide business communication, there does always need to be a sense of balance and a certain amount of appreciation for diversity in languages to foster an inclusive global business environment.

Analysis of the evolution of trends in exchange rates and interest rates in the Iraqi economy for the period )2004-2020(

Every economy in the world is characterized by its adoption of a specific interest rate, as well as its own exchange rate, according to its capabilities and degree of development. Therefore, these two variables are the tool for linking the value of goods, assets, and wages in the local markets, and their counterparts in foreign markets, and through them many relationships arise. International, the most important of which is the possibility of directing and transferring capital to one country and not another, as these two variables (interest rate, exchange rate) have a direct role in international transactions. Through the interaction of the interest rate and the exchange rate, we have an economic relationship that has a direct impact on the flow of foreign investments between countries. Therefore, these concepts and their relationship to the overall economy and what are the most prominent factors affecting them will be discussed. The study sought to demonstrate the impact of these two variables on the Iraqi economy through the research objective. The research aims to describe and analyze the paths of interest rates and exchange rates during the period (2004 - 2020) in order to determine their behavior during the research period. The most prominent conclusions reached by the research were that the exchange rate is considered a measure of international competitiveness, which exerts a major influence on the local economy, as does the interest rate, as it reflects the economic position in general, and commercial position in particular, because it represents the linking tool through which prices are determined. The relative proportion of local goods to foreign goods. That is, it is the linking tool through which the purchasing power of the local currency is determined against other foreign currencies, as the local currency is considered a commodity, and the foreign currency is its monetary price. The research concluded with a set of recommendations, the most important of which was in order to encourage investment instead of the Iraqi investor’s tendency to invest in foreign currencies, work must be done to activate the interest rate in Iraq

Trading locomotives between the USA and Japan: Okura & Co. at the beginning of the twentieth century

Abstract This article examines international transactions related to steam locomotives at the beginning of the twentieth century while focusing on Japanese trading companies. In particular, it considers in detail how Japanese trading companies acquired the knowledge and know-how of locomotive trading to carry out their business transactions through a case study of Okura & Co.'s New York branch office. The analysis highlights the following three factors that supported Okura's locomotive trade in New York: first, the company took advantage of business opportunities by collecting information through networks of Japanese contacts in New York and local experts; second, it utilised social and technological infrastructure, including international communication lines, transportation, and financial systems, as key fundamentals of its overseas activities; third, a former oyatoi (hired foreigner) played a critical role as its consulting engineer. In particular, the overseas activities of Japanese trading companies drew heavily on formerly hired foreign engineers, whose technological knowledge and networks became an essential route of knowledge transfer in cross-regional commercial management. These will contribute to the evolution of history related to the starting points of global activities of Japanese trading companies.

Entrepreneurial culture in small businesses in Sinaloa

This research work aimed to analyse the conditions of entrepreneurial activity and culture in the environment of small businesses in Sinaloa, considering the relevance and correlation between success stories and their processes. The importance of this topic is that there is a requirement for administrative orientation since the functions of the partners are related to the administrative role, and they have been updating themselves in the processes and management of local and international transactions that mark the new orientations. In this way, innovative techniques and strategies are required to deal with conflicts in relation to the above. Likewise, this will enable them to develop and implement strategies and actions aligned with the technological and sustainable (social, economic, and environmental) advances that are demanded today in the rules of world trade. Hypothesis. Adequate management is considered a pillar for the long-term success of small businesses, motivating the innovative spirit of an organisation's partners, and creating competitive advantages for the organisation over its competitors.