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9 Cards in this Set

  • Front
  • Back
Portfolio Investments
The purchase of purely financial assets, such as bonds and stocks usually arranged through banks and investment funds. (Collapsted after WWI revived in 1960's)
Direct investments
Real investments in factories, capital goods, land and inventories where both capital and management are involved and the investory retains control over the use of the invested capital.
Portfolio Theory
Maintains that by investing in securities with yields that are inversely related over time, a given yield can be obtained at a smaller risk or a higher yield can be obtain at the same level of risk for the portfolio as a whole.
Risk diversification
Investments in securities with yields that are inversely, or negatively, correlated or investments in different lines of products in order to spread and thus reduce the overall risks of the total investments.
Horizontal integration
The production abroad of a differentiated product that is also produced at home.
Vertical integration
The expansion of a firm backward to supply its own raw materials and intermediate products and/or forward to provide its own sales or distribution networks.
Multinational Corporations (MNCs)
Firms that own, control or manage productiona nd distribution facilities in several countries.
Transfer Pricing
The overpricing or underpricing of products in the intrafirm trade of multinational corporations in an attept to shift income and profits from high to low tax nations.
Brain drain
the migration of highly skilled and trained people from developing to developed nations and from other industrial nations to the U.S.