T2.FC Flashcards
(138 cards)
agglomeration
Clustering of economic activities in certain locations.
appreciation
An increase in the value of the currency
balance of payments
A country?s international transaction statement, which includes merchandise trade, service trade, and capital movement.
bandwagon effect
The effect of investors moving in the same direction at the same time, like a herd
bargaining power
Ability to extract favorable outcome from negotiations due to one party?s strengths.
Beijing Consensus
A view that questions Washington Consensus? belief in the superiority of private ownership over state ownership in economic policy making, which is often associated with the position held by the Chinese government.
bid rate
The price to buy a currency
bounded rationality
The necessity of making rational decisions in the absence of complete information.
Bretton Woods system
A system in which all currencies were pegged at a fixed rate to the US dollar.
build-operate-transfer (BOT) agreement
A non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
capital flight
A phenomenon in which a large number of individuals and companies exchange domestic currency for a foreign currency.
Civil law
A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments.
clean
A pure market solution to determine exchange rates.
Clean (free) float
A pure market solution to determine exchange rates.
cognitive pillar
The internalized (or taken-forgranted) values and beliefs that guide individual and firm behavior.
Co-marketing
Efforts among a number of firms to jointly market their products and services.
common denominator
A currency or commodity to which the value of all currencies are pegged.
Common law
A legal tradition that is shaped by precedents and traditions from previous judicial decisions.
Copyright
Exclusive legal right of authors and publishers to publish and disseminate their work.
Copyrights
Exclusive legal right of authors and publishers to publish and disseminate their work.
country-of-origin effect
The positive or negative perception of firms and products from a certain country.
Cultural distance
The difference between two cultures along identifiable dimensions such as individualism.
currency board
A monetary authority that issues notes and coins convertible into a key foreign currency at a fixed exchange rate.
currency hedging
A transaction that protects traders and investors from exposure to the fluctuations of the spot rate.