1.0 Introduction to the Foreign Exchange MarketThere is one thing that differentiates international business from domestic business where more than one currency is used in the business transaction. For example, if a British company purchases some goods from a US company, the international transaction will require the exchange of pounds and US dollars involving the foreign exchange market. In the foreign exchange market, any country that wishes to do business with a foreign country must convert its national currency into the foreign currency it wishes to cooperate with through foreign exchange. Foreign exchange markets enable the conversion of currencies, where it helps businesses conduct trade more efficiently across national borders. Additionally, businesses can purchase low-cost financing on capital markets around the world and then use the foreign exchange market to convert the foreign currency they obtain into the currency they need. With foreign exchange nowadays, anyone can travel to another country by converting their national currency into foreign currency. The exchange rate will follow the exchange rate according to the country's rate. However, the foreign exchange market is actually dealing with fluctuations where it sometimes features upward and downward movements. 2.0 Function of Foreign Exchange Market Foreign exchange market is one of the important mechanisms in international trade because foreign exchange is an intermediary for all nations in terms of the growth of the economy. There are many functions of the foreign exchange market in the global economy. In international business, he uses foreign exchange markets in four ways. First, the pay... middle of the paper... March 2014. Available at: http://www.wisegeek.com/what-is-hard-currency.htm#didyouknowout Retrieved April 6, 2014Currency Fluctuation, What is Currency Fluctuations, 2014. Available at: http://www.wisegeek.org/what-are-currency-fluctuations.htm Retrieved April 6, 2014Japanese Yen, Japanese Yen: Indestructible Asian Currency, March 21 2012. Available at: http://english.pravda.ru/business/finance/21-03-2012/120845-japanese_yen-0/ Retrieved April 6, 2014What Forex traders need to know about the yen, Investopedia, 2013. Available at: http://www.investopedia.com/articles/forex/japanese-yen-what-fx-traders-should-know.asp Retrieved April 6, 2014The Rise of the Japanese Yen and the Decline of US dollar, East Asia Forum, 2011. Available at: http://www.eastasiaforum.org/2011/10/01/japan-s-rising-yen-and-the-decline-of-the-us-dollar/ Retrieved April 7 2014