Market Integration Flashcards
Refers to how easily two or more markets can trade with each other.
Market Integration
It occurs when prices among different locations or related goods follow similar patterns over a long period of time.
Market Integration
Groups of prices often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated.
Market Integration
The term is further used in identifying related phenomenon of market of goods and services experiencing similar patterns of increase or decrease in prices of products.
Market Integration
refer to the movement of prices of related goods and services sold in a defined geographical location in similar patterns.
Market Integration
When government implement certain strategy to control the direction of economy then?
Integration is intentional
while shifting in supply and demand that has a spillover effect on several markets is another factor of_____________
Market Integration
One way of helping integration of market is by?
Reducing trade barriers and foreign trade
It exists when there are exerted effects that prompt similar changes or shifts in other markets that focus on related goods on events occurring within two or more markets.
Market integration
This is a condition in which stock markets in different countries trend together and depict same expected risk adjusted returns.
Stock Market Integration
It is an open market economy between countries facilitated by a common currency and the elimination of technical, regulatory and tax differences to encourage free flow of capital and investment across borders.
Financial Market Integration
It occurs when lending rates in several different markets begin to move in tandem with one another.
Financial Market Integration
is a business that operates in two or more countries.
Global corporations
Also called a multinational company
Global Corporations
Several advantages are offered by global expansion of business over running a strictly domestic company.
Global Corporation
An approach study of globalization that locates the phenomenon itself in early patterns of trade and exchange.
Historical Globalization
Emerged in the period prior to the end of the world war l l.
Modern national state system
Led the economic recovery and expansion after the World War Two.
American corporation
From the end of the world war two up to the present is considered as the?
period of transformation of global corporations.
The reentry of this corporation to the global scene is viewed as.
Japanese and European
Multinational Corporations (MNC’s)
They must balance the opportunities with the challenges of operating in multiple environments in managing their internal markets in building an advantage.
Chief Financial Officer’s (CFO’s)
These three functions can be created by CFOs through exploiting their internal capital markets.
Financing, Risk Management, Capital Budgeting
A group’s tax bill can be reduced by the CFO like borrowing in countries with high tax rates and lending operations in the countries with lower rates.
Financing
Global firms can offset natural currency exposures through worldwide operations instead of managing currency exposures through financial markets.
Risk Management
