Bus 335 Final

Front 1

Free Trade Area

Back 1

Removes Tariffs among members

Front 2

Customs Union

Back 2

Common trade policy toward others

Front 3

Common Market

Back 3

Allow free movement of factors and production

Front 4

Economic Union

Back 4

Full integration of member economies

Front 5

Why is WTO disliked

Back 5

Trade helps rich countries more than poor

Front 6

What does WTO do?

Back 6

Investigates complaints and trade issues

Front 7

Can WTO impose sanctions

Back 7

No.

Front 8

What is a concern about the WTO?

Back 8

Appeal process is very slow (years)

Front 9

What is the Bid part of the Bid-ask spread?

Back 9

Price at which the dealer will buy a currency from you. It's the lower figure.

Front 10

What is the ask part of the Bid-ask spread?

Back 10

Price at which the dealer will sell a currency to you. Higher figure.

Front 11

How many bailouts has Greece received?

Back 11

Two

Front 12

What countries have received bailouts in the euro crisis?

Back 12

Ireland, Portugal, Greece,

Front 13

Three accounts that make up the current account

Back 13

Goods, services and income, Unilateral transfers

Front 14

Purpose of the five Maastricht criteria

Back 14

To encourage economies to converge

Front 15

What is a Eurodollar?

Back 15

A US dollar deposited or loaned outside the US

Front 16

Foreign exchange dealers

Back 16

take positions in currencies, hold "inventory"

Front 17

Foreign exchange brokers

Back 17

Match buyers and sellers

Front 18

Foreign exchange traders

Back 18

Speculators and arbitragers

Front 19

What is a spot transaction?

Back 19

Current exchange rate transaction

Front 20

What is a forward transaction?

Back 20

For delivery in the future. Agree today to exchange currency at a specified date at a known exchange rate.

Front 21

Hofstede's Five dimensions- What is power distance

Back 21

How society accepts differences in power and wealth.
- Higher distance means more comfortable with inequities in power
- Lower distance means less authoritarian

Front 22

Hofstede's Five dimensions- Individualism vs. collectivism

Back 22

Individualistic- looser ties between people, personal freedom and achievement are important

Collectivism- look after interest of family and society more than individual

Front 23

Hofstede's Five dimensions- Uncertainty Avoidance

Back 23

Ability of a society to accept change and uncertainty.
High- avoid change and uncertainty
Low- accept more change and/or uncertainty

Front 24

Hofstede's Five dimensions- Masculinity vs. Femininity

Back 24

Masculine- assertiveness, goal oriented
Feminine- caring for others, quality of life

Front 25

Purpose of GATT

Back 25

Liberalize trade by eliminating tariffs, subsidies, import quotas.

Front 26

Absolute Advantage

Back 26

Capability of one country to produce more of a product with the same amount of input than another country.

Front 27

Comparative Advantage

Back 27

Even if one nation has absolute in both products, both nations can benefit if the nation is comparatively more efficient in making one product than the other

Front 28

Porter's Diamond- Firm Strategy, Structure and Rivalry

Back 28

Presence of domestic rivalry improves a company's competitiveness

Front 29

Porter's Diamond- Factor Endowments

Back 29

Basic Factors- natural resources, climate, location

Front 30

Porter's Diamond- Related and Supporting Industries

Back 30

Creates clusters of supporting industries that can become internationally competitive

Front 31

Porter's Diamond- Demand Conditions

Back 31

Local demand creates the capabilities

Front 32

FDI

Back 32

Direct investments in a business operation in a foreign country

Front 33

Portfolio Investment

Back 33

Investment in stocks, bonds, and other financial assets where significant influence is not usually exercised.

Front 34

Benefits of FDI

Back 34

- Infrastructural improvements
- Employment
- Technology
- Growth

Front 35

FDI Disadvantages

Back 35

- Often hurts local competition
- Affects Sovereignty
- Hurts balance of payments

Front 36

What is Balance of Payments

Back 36

A system of bookkeeping designed to measure economic activity between a country and other nations

Front 37

Guanxi

Back 37

Chinese word for personal connections and understanding between two people

Front 38

What is the Holy book of Islam

Back 38

Qur'an or Koran

Front 39

Five Pillars of Islam

Back 39

- Confession of faith
- Prayer- 5 times a day at set times
- Charity
- Fasting during Ramadan
- Journey to Mecca Once

Front 40

Essence of Hinduism

Back 40

No one holy book or person

Front 41

Advantages of the euro

Back 41

- Lower foreign exchange risk
- Reduced transaction costs

Front 42

Sunni's

Back 42

Believe the successor should be chosen by the people to reflect their will

Front 43

Shi'ites

Back 43

Believe that a direct descendant of Muhammad should be chosen

Front 44

Two accepted economic arguments for government intervention to restrict trade

Back 44

The infant industry argument and New Trade theory

Front 45

A ____________ is a government tax charged per item

Back 45

Specific tariff

Front 46

A downside to the infant industry argument is that

Back 46

It is often difficult to eliminate after it has served its purpose

Front 47

According to Islam

Back 47

Payment of interest on money is prohibited

Front 48

The Hofstede dimension in which long-range planning and gift giving are valued

Back 48

Describes a component of many Asian cultures