exam 2 Flashcards
(25 cards)
In ______________ exchange rate system, the value of the currency is determined by market forces, however, government often intervenes to maintain the value of its currency within desirable limits.
dirty float
A Mexican corporation issues a dollar-denominated bond and sells it in France. This is an example of a ________.
EUROBOND
A German company issues a dollar-denominated bond and sells it in the United Kingdom. This is an example of a ________.
EUROBOND
When the currency of a bond + the place of issue are different
Eurobond
A German company issues a dollar-denominated bond and sells it in the United States
foreign bond
is seizure of corporate assets with compensation.
expropriation
A quantitative restriction on specific imports from a specific country for a set period of time is referred to as
quota
are low-income countries characterized by limited industrialization and stagnant economies.
developing economies
refers to shares of ownership in a company’s assets that give shareholders a claim on the company’s future cash flow
stock
gives subsidiaries considerable authority and control over the firm’s activities in host country?
multi domestic strategy
When Toshiba sell products to its Italian subsidiary, it is most likely engaging in
transfer pricing
Sony Company has Japanese yen deposited in a branch of Chase in the U.S. This is an example of
euro yen
Products are classified under 8,000 different unique codes in the _____________, a standardized system used worldwide
harmonized (code) tariff schedule
A flat fee or fixed amount per unit imposed by a government on an imported product is called a(n)
specific tariff
A global industry is one in which competition is on a worldwide scale. _____________
is a global industry
automobiles
Cadbury adopts global strategy and centralizes decision making. Which of the following org. structure fits better?
product structure
quantitative restriction on specific imports from a specific country for a set period of time
quota
USMCA (NAFTA) is an example of which of the following levels of regional integration
free trade area
if demand for the dollar is high, the price of the dollar is most likely to
rise
which of the following is applied when an Italian tourist exchanges euros for the immediate receipt of dollar in the us?
the spot rate
firms that emphasize global integration make & sell
products that require minimal adaption
which of the following is most likely to be true regarding a currency price if the supply currency decreases?
the price of currency increases
which of the following has contributed to the emergence of a large European market
higher interest rates on eurocurrency deposits
nations pursing regional integration seek to
all of the above
