1. Terms used in foreign exchange include repo/ready forwards, currency risk, country risk, tariffs, ad valorem and specific duties, balance of payments, and exchange rates. 2. The international monetary system involves the conversion of currencies and transfer of funds across nations for international trade, financial asset transactions, and credit creation and repayment. 3. Integration and transmission effects have increased in financial markets due to technology, inflation/interest rates, new instruments, and deregulation, allowing funds to be raised and invested globally.