2.2 Market Integration

Question 1

refers to how easily two or more markets can trade with each other. It occurs when prices among different locations or related goods follow similar
patterns over a long period of time.

Answer 1

Market integration

Question 2

___________ often move proportionally to each
other and when this relation is very clear among different markets it is said that the
markets are integrated

Answer 2

Groups of prices

Question 3

Types of Related Markets where Market Integration Occurs

Answer 3

Stock Market Integration
Financial Market Integration

Question 4

Types of Related Markets where Market Integration Occurs

This is a condition in which stock markets in different countries trend together and depict same expected risk-adjusted returns. Two markets are perfectly integrated if investors can pass from one market to another without paying any extra costs and if there are possibilities of arbitration which ensures the equivalence of stock prices on both markets

Answer 4

Stock Market Integration

Question 5

Types of Related Markets where Market Integration Occurs

It is an open market economy between countries facilitated by a common currency and the elimination of technical, regulatory and tax differences to
encourage free flow of capital and investment across borders. It occurs when lending rates in several different markets begin to move in tandem with one
another. Emergence of similar patterns within the capital, stock, and financial markets with those trends coming together to exert a profound influence on the
economy of that nation is involved in the integration within a nation.

Answer 5

Financial Market Integration

Question 6

A__________________ is a business that operates in two or more countries

It also goes by the name “multinational company”

Answer 6

global corporation

Question 7

An approach to the study of globalization that locates the phenomenon itself in early patterns of trade and exchange is known as

Answer 7

historical globalization.

Question 8

what is MNCs

Answer 8

multinational corporations

Question 9

it is the one that must balance the opportunities with the challenges of operating in multiple environments in managing their internal markets in building an
advantage.

Answer 9

Chief financial officers (CFOs)

Question 10

what is CFOs

Answer 10

Chief financial officers

Question 11

A group’s tax bill can be reduced by the CFO like borrowing in countries
with high tax rates and lending to operations in countries with lower rates.

Answer 11

Financing

Question 12

Global firms can offset natural currency exposures through worldwide operations instead of managing currency exposures through financial markets.

Answer 12

Risk Management

Question 13

Getting smarter on valuing investment opportunities CFOs can add value.

Answer 13

Capital budgeting

Question 14

It is a major driver of extended global corporate development. It is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country hint it was of corporate origin

Answer 14

Foreign Direct Investment (FDI)

Question 15

what is FDI

Answer 15

Foreign Direct Investment

Question 16

methods to establish FDIs

Answer 16

opening a subsidiary or
associate company in a foreign country;
acquiring a controlling interest in an existing
foreign company, or by means of a merger or joint venture with a foreign company.

Question 17

These five countries were among the fastest
growing emerging markets as of 2011.

Answer 17

Brazil, Russia, India, China and South Africa

Question 18

what is (BRICS)

Answer 18

Brazil, Russia, India, China and South Africa

Question 19

what is the combined economies

Answer 19

BRICS Economies or
Brazil, Russia, India, China and South Africa (BRICS)

Question 20

what is (BRIC)

Answer 20

Brazil, Russia, India and China

Question 21

BRIC, without South Africa, was originally coined in by ________, which speculates that by
2050 these four economies will be the most dominant.

Answer 21

Goldman Sachs

Question 22

in BRIC South Africa was added to the
list on __________ creating “BRICS”(

Answer 22

April 13, 2011

Question 23

the first multilateral agreement covering trade in services which was negotiated during the last round of multilateral trade negotiations, called the Uruguay Round, and came into force in 1995.

Answer 23

The General Agreement on Trade in Services (GATS)

Question 24

two primary objectives of GATTS

Answer 24

to ensure that all signatories are treated equitably when accessing foreign markets;
and
second, to promote progressive liberalization of trade and services.

Question 25

the purposes of becoming global corporation

Answer 25

Expanding revenue opportunities

diversifying business risk

Question 26

Period of when as both cities and countries extended their reach
beyond their own borders, a form of globalization was initiated which then followed complex patterns of interactive engagements organized through trade and industry directly influenced by the emergent and subsequently dominant technologies especially in shipping and navigation .

The entities operating within this environment were functionally and organizationally not different from contemporary organizations being possessed with head offices, foreign branch plants, corporate hierarchies, extraterritorial business law, and even bit of foreign direct investment and value-added activity

Answer 26

In early historical periods

Question 27

In this period theCombination of invention and social organization resulting to increase in worldwide capital and wealth of nation is allowed by modern nation state system that emerged .

Answer 27

in the period prior to the end of World War II

Question 28

American Corporations led the economic recovery and expansion happened after what period ?

Answer 28

After the World War II destruction

Question 29

This period up to the reentry of Japanese and European corporation to the global scene is viewed as __________________

Answer 29

multinational corporations (MNCs)

Question 30

From the end of World War II to the present is considered the period of __________

Answer 30

transformation of global corporation.