Business Decision Making in Global enviornments Flashcards

1
Q

Greensfield

A

Type of Foreign direct investment

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2
Q

Equity Modes of Entry

A

Entering a foreign market using joint ventures and joint investments, direct investment and wholly owned subsidiaries.

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3
Q

What is mercantalism

A

Maximize the exports and minimize the imports to create a one sided trade so to speak

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4
Q

WHa

What is the relationship between inflation and currency exchange?

A

An inverse relationship

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5
Q

What are the 3 foreign exchange transactions?

A
  • Spot Transactions - Single shot exhange from one country to another
  • Currency Swap
  • Forward transaction
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6
Q

3 Views of Globalization

A
  • New Force - recent
  • Long Run Historical - human history
  • Pendulum - swins from one extreme to the next
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7
Q

MNE

A

Multinational Enterprise - A firm that engages in FDI(Foreign Direct Investment) when doing business

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