Why do we need the IMF?
Smoothing the bumps in the flow of foreign exchange

The Phone Dealer's Dilemma

Only a few people can have the latest cell phone. You are a wireless phone dealer in the mythical land of Yak. Your country is large, but has a small population. Just about everyone has a cellular phone because there are no regular phone lines across the vast distances of your country. Naturally, people take a lot of interest in their phones. Your customers are looking for the latest new styles and features. Your business has great potential.

But you have a problem. You are a dealer. You sell phones, but you do not manufacture them. The best phones come from the neighboring countries of New Bells, Vox, and Sans Fil. To give your customers the selection they want, you realize you could import cell phones from these countries.

How will you import your new inventory?

Find phone exporters in neighboring countries willing to accept your local currency, the doubloon. Go to the bank to exchange doubloons for another currency that exporters in the other countries will accept.
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