It is not a literal marketplace in a centralized location, but a network operated using modern technology. In 2004, daily global turnover on foreign exchange markets reached $1.9 trillion (Frankel, J., 2008). The exchange rate is the price of foreign currency. This price varies daily. This can create a potential problem depending on the market you are dealing with. It would be wise for a business to compare the costs of exchanging currency through a local bank with those of a foreign bank to get the best deal. Labor Theory of Value The labor theory of value (LTV) is a concept proposed by Adam Smith that links labor to price. He believed that the value of goods and/or services was based on the labor used to produce them. Those who oppose this theory believe that it is seriously flawed and that the value of goods and services should be a function of supply and demand. Marginal Rate of Transformation The Marginal Rate of Transformation (MRT) is a tool used to determine the cost of stopping production of one item to produce more of another. MRT refers to the production possibilities frontier, which is the amount of output achievable for a specific amount of input using available technology. For example, if my company produced Toyotas and there was an overstock of Camrys with a demand for Corollas, I would calculate the cost of changing production to