lesson 2 Flashcards
is a functional integration between internationally dispersed activities which means that it is a qualitative transformation rather than a quantitative change while internationalization is an extension of economic activities between internationally dispersed activities.
Economic globalization
refers to a system that forms rules and standards for facilitating international trade among the nations.
International monetary system (IMS)
controlled by several local offices or authorities rather than one single one.
decentralized
a permanent fund created by the European Union (EU) to provide emergency assistance to member states within the Union. It raises money through the financial markets, and is guaranteed by the European Commission.
The European Financial Stability Mechanism (EFSM)
refers to the increasing interdependence of world
economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.
Economic globalization
Refers to a 30-year long process that began at the end of the 1960s as a form of monetary cooperation intended to reduce the excessive influence of the US dollar on domestic exchange rates, and led, through various attempts, to the creation of a Monetary Union and a common currency.
European Monetary Integration
a 1979 arrangement between several European countries which links their currencies in an attempt to stabilize the exchange rate. This system was succeeded by the European Economic and Monetary Union (EMU), an institution of the European Union (EU), which established a common currency called the euro.
The European Monetary System (EMS)
the exchange of goods, services and capital across national borders
International trade
according to ___ ? economic globalization is a historical process, the result of human innovation and technological progress
the International Monetary Fund
refer to the regulations and agreement of foreign countries. It defines standards, goals, rules, and regulations that pertain to trade relation between countries
Trade policies
These are taxes or duties paid for a particular class of imports or exports. Imposing taxes on imported and exported goods is a right of every country
Tariffs
Theses are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods
and services
Trade barriers
This ensures that imported products in the country are of high quality
Safety
This safeguards the best interest of its trade and citizen.
National Trade Policy
To regulate the trade and business relations between two nations, this policy is formed.
Bilateral Trade Policy
This defines the trade policy under their charter like the International economic organizations, such as Organization for Economic Cooperation and Development (OECD), World Trade Organization (WTO) and International Monetary Fund (IMF).T
International Trade Policy
deals with the global rules of trade between nations with the main function of ensuring that trade flows smoothly, predictably and freely.
The World Trade Organization (WTO)
an activity that requires search for a partner and relation-specific investments.
is a means of finding a partner with which a firm can establish a bilateral relationship and having the partner undertake relationship-specific investments so that it becomes able to produce goods and services that fit the firm’s particular needs
Outsourcing
