Globalization Flashcards
Foreign direct investment involves investments in non-monetary
Assets in a foreign location
The international organization that has the promotion of economic development through loans to developing countries as a primary purpose
World bank
The share of the total purchases and output has
Increased
When goods are outsourced to a foreign supplier the supplier is least likely to encounter
Market risk
Can mitigate risk of outsourcing by including an
Arbitration clause with the foreign supplier
Investment in foreign currency is fewer dollars and borrowing in a foreign currency is more dollars when
Dollar strengthens
Dollar weakens
Eurodollars are dominated in US and don’t provide
Long term loans
Europe has the greatest decline in worldwide
Output over the last 40 years
Us exports are what percent worldwide
10%
Asia has the greatest share of
Worldwide output
The us share of worldwide GDP is
25%
Least likely advantage of a wholly owned foreign subsidiary is
Minimizes capital investment required
Goods with a low value weight ratio are less likely to be suitable for
Importing than goods
Exporting goods one may encounter import
Restrictions
A foreign subsidiary is the greatest control over an
International business activity