Ch4.5 International Business

Question 1

What are exchange rates

Answer 1

Are the rates at which currencies are converted into another currency.

Question 2

What is a strong dollar

Answer 2

The US dollar exchanges for a large amount of foreign currency

Question 3

A weak dollar is what.

Answer 3

You will get fewer Mexican pesos for a dollar.

Question 4

What is currency appreciation

Answer 4

An increase in the exchange rate value of a nations currency.

Question 5

Currency depreciation is what

Answer 5

A decrease in exchange rate value of a nations currency

Question 6

Currency depreciation is what

Answer 6

A decrease in exchange rate value of a nations currency

Question 7

Devalue is what

Answer 7

To deliberately reduce the value of a currency in relation to another.

Question 8

What is a trade deficit and surplus

Answer 8

Trade deficit exist when the value of a country imports exceeds the value of its exports

Surplus is when the value of exports exceeds the imports

Question 9

(SWF) government investment funds that take the pool of money that exists in the year of a trade.

Answer 9

Sovereign wealth funds