Chapter 11 Flashcards
What is international entrepreneurship
International entrepreneurship is a process of an entrepreneur conducting business activities across national boundaries
What are analytical factors of new market
- Economic development
- Value of currency
- Marketing analysis
- Distribution system
- Degree of economic development
- Legal system
- Communication system
- Banking system
What is balance of trade
The difference of import and export
How to evaluate currency of any country
From balance of trade
What is hedging
Some people pay some fee to bank and fix rate of dollar for 24 hours for letter of credit. Some exporter buy it
What is FERI
Foreign exchange risk insurance is a safe guard for rate of change of currency. For example, a company quote in international market for some thing in dollars. After some time the rate of dollar changes, this change could hurt that company. So FERI comes in handy to give insurance of safety.
What is VAT
Value added tax
What are international entrepreneur process
- Barter
- Third party payment
- Direct payment
