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20 Cards in this Set
- Front
- Back
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depreciation
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fall in the price of a currency through the actions of supply and demand
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devaluation
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lowering a currencys value in relation to other currencies by government order
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direct foregin investment ( DFI )
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the purchase by foreigners of real estate and businesses in another countries
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european union
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organization of european nations whose goal is to encourage economic integration as a single parket
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foreign affiliates
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branches of multinational firms
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import quota
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restriction imposed on the number of units of a particular good that can be brought into the country
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monetarism
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theory that deals with the relationship between the amount of money the fed places in circulation and the level of activity in the economy
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stagflation
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combination of inflation and stagnation ( low economc activity )
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underground economy
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transactions by people who do not follow federal and state laws with respect to reporting earnings
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what are four types of unemployment
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structural, frictional, cyclical, seasonal
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who is the economist that is most often linked to monetarism
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milton friedman
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what does the united states gain from international trade
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economic respite. us dollar is still expensive in most countires
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why are foreign exchange markets necessary
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to facitate the international trading of goods and services
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how can a nation restrict imports
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place a tax on them, making products cost more
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what is the difference between a revenue tariff and a protective tariff
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revenue tariffs pay interest on debts and funds the government while a protective tariff imports duties on manufactured goods
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what is an embargo
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an official ban on trade or other commercial activity with a particular country
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what does NAFTA stand for
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north american free trade agreement
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what kinds of financial investments are traded in global markets
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bonds, stocks, currencies, commodities
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why do foreigners pruchase united states government securities
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as an investment of their suplus us dollars
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what is an example of a cross - border investment
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the european union conducts more direct foreign investment in western europe than anywhere else
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