Questions from Globalization

Q: You are managing director of your U.S. firm’s subsidiary

You are managing director of your U.S. firm’s subsidiary in southern France. The social welfare states of Western Europe were founded in the Second World War with specific ethical considerations in mi...

Q: 1. What are the stated aims of the Association of Southeast

1. What are the stated aims of the Association of Southeast Asian Nations (ASEAN)? 2. The stated aims of which organization is not to build a trading bloc but instead to strengthen the multilateral tr...

Q: 1. What is the purpose of the international capital market?

1. What is the purpose of the international capital market? 2. Unbundling and repacking hard-to-trade financial assets into more marketable financial instruments is called what? 3. What is the charact...

Q: 1. What type of financial instrument is traded in the international

1. What type of financial instrument is traded in the international bond market? 2. The market of all stocks bought and sold outside the issuer’s home country is called what? 3. What does the Eurocurr...

Q: 1. What is the market in which currencies are bought and

1. What is the market in which currencies are bought and sold and their prices determined? 2. Insuring against potential losses that may result from adverse changes in exchange rates is called what? 3...

Q: 1. The numerator in a quoted exchange rate, or the

1. The numerator in a quoted exchange rate, or the currency with which another currency is to be purchased is called what? 2. What is the name given to the risk of adverse changes in exchange rates? 3...

Q: 1. Where does more than half of all global currency trading

1. Where does more than half of all global currency trading take place? 2. A currency used as an intermediary to convert funds between two other currencies is called what? 3. What is another name for...

Q: 1. For a country with a currency that is weakening (

1. For a country with a currency that is weakening (valued low relative to other countries), what will happen to the price of its exports and the price of its imports? 2. Unfavorable movements in exch...

Q: 1. The principle that an identical item must have an identical

1. The principle that an identical item must have an identical price in all countries when price is expressed in a common currency is called what? 2. A unique aspect of purchasing power parity in the...

Q: 1. The gold standard is an example of what type of

1. The gold standard is an example of what type of international monetary system? 2. What are the main advantages of the gold standard? 3. What is the name of the international monetary system that fo...