Acronyms
FDI
What is Foreign Direct Investment?
FDI that occurs when a company is trying to open up a new (often similar) market.
What is Horizontal FDI?
A country type that can be defined as a society transitioning from a centrally managed economy to a free market-oriented-economy, with increasing economic and often personal freedom.
What is an Emerging Market?
The exchange rate transacted at a specific moment by a buyer and seller of a currency.
What is the Spot Exchange rate?
USMCA
What is The United States–Mexico–Canada Agreement
When a company or government entity purchases or leases existing production facilities to launch a new production activity.
What is brownfield investment?
Economic union of 27 countries, 20 use the euro as their currency.
What is the European Union?
This occurs when two parties agree to exchange currency and execute the deal at some specific date in the future
What is a forward exchange rate?
The pre–World War I global monetary system that used gold as the basis of international economic exchange.
What is the Gold standard.
BRICS
What is Brazil, Russia, India, China, and South Africa?
Governments impose quotas or tariffs to limit this
What is importing?
Rules of origin.
What is the percentage of the value of a good has to be produced by countries within the free trade area.
When the foreign exchange market determines the relative value of a currency.
What is Floating exchange rates.
GAAP
What are generally accepted accounting principles?
Financial incentives, Infrastructure investments, Administrative processes and regulations, Investments in education, Political, economic, and legal stability are efforts by nations.
What are efforts to encourage FDI?
Best known for its peacekeeping role, one of the organization’s central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.
What is the United Nations?
Securities
What are stocks or bonds? Wide range of debt- and equity-based financial instruments.
IASB
Who is the International Accounting Standards Board?
The investment in a company’s stocks, bonds, or assets, but not for the purpose of controlling or directing the firm’s operations or management.
What is Portfolio Investment?
A country’s wealth is determined by its holdings of gold and silver. The objective is to have a trade surplus and to avoid a trade deficit.
What is the Mercantilism?
Bond sold by a company, government, or entity in another country and issued in the currency of the country in which it is being sold.
What is a Foreign Bond?