Market Integration Flashcards
Refers to how easily two or more markets can trade with each other.
Market Integration
It occurs when prices among different locations or related goods follow similar patterns over a long period of time.
Market Integration
Groups of prices often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated.
Market Integration
The term is further used in identifying related phenomenon of market of goods and services experiencing similar patterns of increase or decrease in prices of products.
Market Integration
refer to the movement of prices of related goods and services sold in a defined geographical location in similar patterns.
Market Integration
When government implement certain strategy to control the direction of economy then?
Integration is intentional
while shifting in supply and demand that has a spillover effect on several markets is another factor of_____________
Market Integration
One way of helping integration of market is by?
Reducing trade barriers and foreign trade
It exists when there are exerted effects that prompt similar changes or shifts in other markets that focus on related goods on events occurring within two or more markets.
Market integration
This is a condition in which stock markets in different countries trend together and depict same expected risk adjusted returns.
Stock Market Integration
It is an open market economy between countries facilitated by a common currency and the elimination of technical, regulatory and tax differences to encourage free flow of capital and investment across borders.
Financial Market Integration
It occurs when lending rates in several different markets begin to move in tandem with one another.
Financial Market Integration
is a business that operates in two or more countries.
Global corporations
Also called a multinational company
Global Corporations
Several advantages are offered by global expansion of business over running a strictly domestic company.
Global Corporation
An approach study of globalization that locates the phenomenon itself in early patterns of trade and exchange.
Historical Globalization
Emerged in the period prior to the end of the world war l l.
Modern national state system
Led the economic recovery and expansion after the World War Two.
American corporation
From the end of the world war two up to the present is considered as the?
period of transformation of global corporations.
The reentry of this corporation to the global scene is viewed as.
Japanese and European
Multinational Corporations (MNC’s)
They must balance the opportunities with the challenges of operating in multiple environments in managing their internal markets in building an advantage.
Chief Financial Officer’s (CFO’s)
These three functions can be created by CFOs through exploiting their internal capital markets.
Financing, Risk Management, Capital Budgeting
A group’s tax bill can be reduced by the CFO like borrowing in countries with high tax rates and lending operations in the countries with lower rates.
Financing
Global firms can offset natural currency exposures through worldwide operations instead of managing currency exposures through financial markets.
Risk Management
Getting smarter on valuing investment opportunities CFOs can add value.
Capital Budgeting
It is a major driver of extended global corporate development. was of corporate origin.
Foreign Direct Investment (FDI)
It is an investment made by a company or individual in one country in business interests in another country.
Foreign Direct Investment (FDI)
that it is an investment made that establishes either effective control of, or at least substantial influence over, the decision making of a foreign business.
Foreign Direct Investment (FDI)
it is an investment made that establishes either effective control of, or at least substantial influence over, the decision making of a foreign business.
Key feature of Foreign Direct Investment
It is made open to economies; frequently involves more than just a capital investment and includes provision of management or technology as well.
Foreign Direct Investment
BRICS
Brazil, Russia, Indi , China, South Africa
originally coined in 2003 by Goldman Sachs , which speculates that by 2050 these four economies will be the most dominant.
BRIC
BRIC was coined by?
Goldman Sachs
It is the country added to BRIC on April 13, 2011 creating BRICS
South Africa
These five countries were among the fastest growing emerging markets as of 2011.
Brazil, Russia, Indian, China, South Africa
When did South Africa got added to BRICS
April 11, 2013
Cited as source of foreign expansion opportunity i.e. promising economies in which to invest.
BRICS
the first multilateral agreement covering trade in services which was negotiated during the last round of multilateral trade negotiations called.
Uruguay Round
When did Uruguay Round come into force?
1995
provides a framework of rules governing services trade, establishes a mechanism for countries to make commitments to liberalize trade in services and provides a mechanism for resolving disputes between countries.
General Agreement on Trade and Services (GATS)
has similar principle with the General Agreement on Tariffs and Trade
GATS
General Agreement on Trade in Services
Deals with trade goods
GATT
Two Primary objectives of GATT:
ensure that all signatories are treated equitably when accessing foreign markets
to promote progressive liberalization of trade and services
