Economic Integration & The Foreign Exchange Market
The IMF & International Business Strategy
100
This is a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country
What is Free Trade
100
This is tax levied on imports or exports
What is a tariff
100
Establishing a new operation in a foreign country is known as this
What is a Greenfield Investment
100
This is an agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other
What is Regional Economic Integration
100
This is institutional arrangements countries adopt to govern exchange rates
What is the International Monetary System
200
This is the observed pattern in the world economy, due in part to the ability of firms in a given market to capture first-mover advantages
What is New Trade Theory
200
This is a payment made by the government to producers of a good or service, that is intended to lower their costs
What is subsidy
200
This is the sale of products produced in one country to residents of another country
What is exporting
200
A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies is known as this
What is a Free Trade Area
200
This is a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand
What is a Floating Exchange Rate
300
This is an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports
What is Mercantilism
300
This is a direct restriction on the quantity of a good that can be imported into a country
What is an import quota
300
This occurs when a firm gives the right to produce its product, its production processes, or its brand name or trademark to another firm
What is Licensing
300
This is a market for converting the currency of one country into that of another country
What is the Foreign Exchange Market
300
Currency value is fixed relative to a reference currency is known as this
What is a Pegged Exchange Rate
400
A country has this in the production of a product when it is more efficient than any other country at producing it
What is an Absolute Advantage
400
This is typically adopted by government bureaucracies that can be used to restrict imports or boost exports
What is Administrative Trade Policy
400
These arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets
What are Location-Specific Advantages
400
This is the rate at which a foreign exchange dealer will convert one currency into another that particular day
What is a Spot Exchange Rate
400
This includes formal division into subunits, location of decision-making responsibilities, and the establishment of integrating mechanisms to coordinate the activities of all subunits
What is Organizational Structure
500
This arises from differences in productivity between nations or differences in national factor endowments
What is a comparative advantage
500
These are designed to punish foreign firms that protect domestic producers from unfair foreign competition
What are Antidumping Policies
500
In the balance of payments, this records transactions involving the export or import of goods and services.
What is the Current Account
500
This is the extent to which a firm's future international earning power is affected by changes in exchange rates.
What is Economic Exposure
500
Trying to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies is known as this