Market Integration

Question 1

• play a significant role in shaping the global economy by providing financial assistance, promoting economic development, fostering global financial stability, and encouraging international cooperation.

Answer 1

International Financial Institutions (IFI)

Question 2

The __ __ __ helps countries facing balance of payment crises by offering short-term financial assistance. In return,
countries often adopt economic reforms, such as fiscal discipline or trade liberalization, which can stabilize both national and global markets.

Answer 2

International Monetary Fund

Question 3

work with IFIs to promote international trade by reducing trade barriers, establishing trade agreements, and resolving disputes. This promotes a more integrated global economy.

Answer 3

World Trade Organization

Question 4

part of the World Bank Group, encourages private sector investment
in developing countries, thereby promoting entrepreneurship and job creation.

Answer 4

International Finance Corporation

Question 5

Institutions like the World Trade Organization (WTO) work with IFIs to promote international trade by reducing trade barriers, establishing trade agreements, and resolving disputes. This promotes a more integrated global economy.

Answer 5

Support Trade and Investment

Question 6

offer technical expertise and policy guidance to help countries manage their economies.

Answer 6

IFIs

Question 7

offer emergency funds during global or regional financial crises.

Answer 7

IFIs

Question 8

serve as platforms for international dialogue and cooperation among countries.

Answer 8

IFIs

Question 9

These policies address large-scale economic factors and are designed to affect the entire economy.

Answer 9

Macroeconomic Policies

Question 10

A commonly used macroeconomic tool to boost exports. By reducing the value of the national currency, domestic
goods become cheaper in international markets, which makes exporting more attractive.

Answer 10

Exchange Rate Devaluation

Question 11

• focus on smaller, specific parts of the economy, like individual firms, sectors, or markets. They address issues such as
  market competition, regulations, and the functioning of specific industries.

Answer 11

Microeconomic Policies

Question 12

• refers to reforms or reorganizations within the financial system aimed at improving its stability, efficiency, and ability to promote economic growth.

Answer 12

Financial Structuring

Question 13

• A key issue in strengthening the financial sector is to do so in ways that enable it to more effectively fulfill its role in promoting economic growth.

Answer 13

Financial Restructuring

Question 14

• refers to the system by which companies are directed and controlled, with a focus on balancing the interests of stakeholders such as shareholders, management, and creditors.

Answer 14

Corporate Governance

Question 15

• these occur when companies rely heavily on borrowing (debt) relative to their equity (ownership capital). While debt can boost returns, excessive debt increases financial risk, making companies more vulnerable to economic downturns and financial distress.

Answer 15

High Debt-Equity Ratios

Question 16

• plays a critical role in ensuring that companies maintain sustainable financial practices, including managing their debt-equity ratios effectively

Answer 16

Corporate governance

Question 17

A _____ _____ _____ indicates a company relies heavily on debt (loans) to finance its operations, which can
increase financial risk, especially during economic downturns.

Answer 17

high debt-equity ratio

Question 18

offering tax benefits for companies that issue new equity (shares) can encourage a shift towards more sustainable financing strategies.

Answer 18

Tax Policy Reform

Question 19

are designed to mitigate systemic risks across the entire financial system, can help prevent excessive leverage from building up and destabilizing the economy.

Answer 19

Macro-prudential Policies

Question 20

These policies monitor and limit the risk exposure of highly leveraged sectors or companies.

Answer 20

Macro-prudential Policies

Question 21

In a market economy, dispersed information from individuals and firms is aggregated through _______, which reflect supply and demand conditions.

Answer 21

prices

Question 22

• aims to balance economic growth with social protection to ensure inclusive development.
• plays a critical role in fostering long-term development and poverty alleviation.

Answer 22

World Bank

Question 23

Early global corporations, such as the Dutch East India Company and British East India Company, emerged to facilitate international trade, particularly in spices, textiles, and precious metals. These corporations played a central role in expanding global commerce and connecting distant economies.

Answer 23

Trade and Exchange (17th century)

Question 24

• During this period, European powers expanded their colonies, and corporations were often tools of imperial expansion.

Answer 24

Colonialism and Imperialism (19th Century)

Question 25

- The __th century saw the rise of multinational corporations from the U.S., Japan, and Europe.

Answer 25

American, Japanese, and European Corporations (20th Century)

Question 26

was a British trading corporation formed in 1600 with a royal charter to exploit trade opportunities in India, East Asia, and Southeast Asia.

Answer 26

East India Company

Question 27

It began as a joint-stock company to secure lucrative trade routes, especially for spices, silks, tea, and other valuable goods from these regions.

Answer 27

East India Company

Question 28

The term "_________" gained prominence during this period to describe the expansionist policies of powerful nations, particularly following the U.S.-Spanish War in 1898.

Answer 28

Imperialism

Question 29

He analyzed a new phase of capitalism, where financial capital (banks and financial institutions) became dominant over industrial capital.

Answer 29

Rodolf Hilferding

Question 30

He discussed the rise of holding companies and sister companies as key instruments of control in the global economy, allowing financial capitalists to consolidate power and influence across industries and borders.

Answer 30

Rodolf Hilferding

Question 31

refers to the practice of acquiring and maintaining direct control over a foreign territory, typically by establishing colonies.

Answer 31

Colonialism

Question 32

refers to a broader policy of domination and influence over foreign nations or regions, not necessarily through direct colonization, but through economic, political, or military power. It often involves exerting control from afar without the need for large-scale settlement.

Answer 32

Imperialism

Question 33

- Companies that engage in importing and exporting, but have no foreign investments or physical presence outside their home country.

Answer 33

International Companies

Question 34

- These corporations have investments and a physical presence in multiple countries, but they standardize products and services for a global audience.

Answer 34

Global Companies

Question 35

Focuses on creating a consistent brand and offering similar products globally, rather than customizing for local markets.

Answer 35

Global Companies

Question 36

- thave investments in various countries but tailor their products and services to suit each local market's needs. - Adaptation to local cultures, preferences, and market conditions.

Answer 36

Multinational Companies

Question 37

- These complex organizations invest in foreign operations and have a central corporate facility, but they delegate decision-making power, research, and marketing to individual markets. Its strategies combine a global presence with local autonomy, enabling flexibility and responsiveness to local demands.

Answer 37

Transnational Companies

Question 38

• The international company’s birth from 1900 especially after Security and Exchange organization (SEC) was founded in 1933 and law of establishment investing companies in 1940 in United States.

Answer 38

American, Japanese and European Corporations

Question 39

• The economic & political media used for first time “Imperialism” terminology for period of U.S. and Spanish war (1898).

Answer 39

Colonialism and Imperialism (19th Century)

Question 40

• the governor and a United Company of Merchants of England Trading to the East Indies. The company was formed for the exploitation of trade with India, East and Southeast Asia

Answer 40

East India Company (English East India Company - 1600–1708)

Question 41

It focuses on project lending and structural reforms that enhance long-run development and poverty alleviation.

Answer 41

World Bank

Question 42

• In a world where private-to-private capital flows are increasingly important, institutions need to recognize that monitoring and surveillance are going to be especially challenging.

Answer 42

The importance and limitations of information

Question 43

• Creating a robust policy regime that minimizes the long-term consequences of the inevitable fluctuations in economic activity, including preventing crises and setting up mechanisms for orderly workouts when they do occur

Answer 43

Preventing Crises by Controlling Capital Flows

Question 44

• Governments should correct the tax, regulatory, and banking practices that encouraged the high debt-equity ratios.

Answer 44

Corporate governance