Business Decision Making in Global enviornments Flashcards
1
Q
Greensfield
A
Type of Foreign direct investment
2
Q
Equity Modes of Entry
A
Entering a foreign market using joint ventures and joint investments, direct investment and wholly owned subsidiaries.
3
Q
What is mercantalism
A
Maximize the exports and minimize the imports to create a one sided trade so to speak
4
Q
WHa
What is the relationship between inflation and currency exchange?
A
An inverse relationship
5
Q
What are the 3 foreign exchange transactions?
A
- Spot Transactions - Single shot exhange from one country to another
- Currency Swap
- Forward transaction
6
Q
3 Views of Globalization
A
- New Force - recent
- Long Run Historical - human history
- Pendulum - swins from one extreme to the next
7
Q
MNE
A
Multinational Enterprise - A firm that engages in FDI(Foreign Direct Investment) when doing business