DWD20200426

David's Time With Peter F. Drucker 2020.4.26 The final implication: All business will have to learn to manage their currency exposure. Every business, even a purely local one, is in the world economy today. As such, it is subject to currency fluctuations even if it does not sell outside its own country, or does not buy outside it. There is no country today that is immune to sudden currency fluctuation——for the simple reason that the world is swash in "virtual money," that is, in liquidity for which there is no profitable investment. Every country, therefore, is swash in money that is not invested in property, in businesses, in manufacturing or in service enterprises, but kept in liquid and volatile "portfolio" investment. And very few countries have enough of a surplus in their balance of payments to service the interest on this "portfolio investment," let alone to pay it out should it take flight. Every country's currency, in other words, it at the mercy of short-term movements of money for which there may not be any economic rationale whatever.——《Management Challenges for the 21st Century · Chapter2》(Peter F.Drucker,1999)