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IBT > prelim♥️ > Flashcards

prelim♥️ Flashcards

1
Q

motive of earning profit

A

business

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2
Q

enterprising entity engaged in commercial activities

A

business

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3
Q

exchange of goods and services between countries

A

international business

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4
Q

all transactions that occur between nations

A

international business

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5
Q

allows better use of available resources

A

international business

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6
Q

stimulate the growth of economy worldwide

A

international business

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7
Q

benefits of international business - benefit to. . .

A

benefits to nations
benefits to firms

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8
Q

benefits to nations

A
  1. earning of foreign exchange
  2. more efficient use of resources
  3. improving growth prospects and employment potential
  4. increase in standards of living
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9
Q

benefits to firms

A
  1. Prospect for higher profit
  2. Increased capacity utilization
  3. Prospect for growth
  4. Decrease competition
  5. Improved business vision
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10
Q

helps a country to earn foreign exchange

A

earning of foreign exchange

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11
Q

the goods they produced efficiently with their own resources and import the rest of the goods

A

more efficient use of resources

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12
Q

countries can increase their production capacity to supply goods to foreign countries

A

Improving growth prospects and employment potential

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13
Q

it becomes possible for people to consumer goods and services of other countries and improve their standard of living

A

increase in standards of living

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14
Q

firms can sell their product in other countries where prices are higher

A

prospect for higher profit

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15
Q

it increases the firm’s production capacity

A

increased capacity utilization

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16
Q

can enhance or expand their business by approaching the international market

A

prospects for growth

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17
Q

companies can sell their products in the international market or in any other country where there is less competition

A

decrease competition

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18
Q

makes firm’s competitive and diversified

A

improved business vision

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19
Q

where short-term financial assets are bought and sold

A

money market

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20
Q

transferring short-term funds from lenders to borrowers

A

money markets

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21
Q

where securities that mature in a year or less are traded

A

money markets

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22
Q

over-the-counter market for trading of currencies

A

foreign exchange market

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23
Q

determine foreign exchange rates for every country

A

foreign exchange market

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24
Q

all aspects of buying selling and exchanging currencies at current or determined prices

A

foreign exchange market

25
Q

it is by far the largest market in the world

A

foreign exchange market

26
Q

factors driving exchange rate movements

A
  1. balance of payments position
  2. speculation over future currency values
  3. domestic economic and political conditions
  4. central bank interventions
27
Q

trade deficit usually faces downwards

A

balance of payments position

28
Q

buy or sell currencies when they see profitable opportunities

A

speculation over future currency values

29
Q

deteriorating economic conditions and inflations

A

domestic economic and political conditions

30
Q

buy or sell currencies to influence the value of their currency

A

central bank interventions

31
Q

foreign trade purchase or sale of goods and services outside the national geographic borders

A

international trade

32
Q

satisfy the demand of local consumers allows countries to expand their markets

A

international trade

33
Q

purchase and sale of goods and services by companies in different countries

A

international trade

34
Q

supply and demand and thus prices both impact and are impacted by global events

A

global economy

35
Q

sold to the global market

A

export

36
Q

bought from the global market

A

import

37
Q

if a country can efficiently produce an item, it can obtained by trading with another country that can

A

specialization

38
Q

two types of trade that complement each other

A

foreign trade and international business

39
Q

classical theory of international trade

A
  1. theory of mercantilism
  2. theory of absolute advantage
  3. theory of comparative cost advantage
  4. endowment theory/ Hecksher-Ohlin model
40
Q

-encourage export and discourage import
-expert minus import

A

theory of mercantilism

41
Q

adam smith book

A

“an enquiry into the nature and causes of the wealth of nations” 1776

42
Q

when one country can produce a unit of good with less cost than another countries

A

theory of absolute advantage

43
Q

nation’s wealth shouldn’t be judged by how much gold and silver it had

A

theory of absolute advantage

44
Q

by david ricardo: if the opportunity cost of producing that goods in terms of other goods is lower in the country compared to other country

A

theory of comparative cost advantage

45
Q

whereas absolute advantage looks at the absolute productivity

A

theory of comparative cost advantage

46
Q

assumes that labor is the only factor of production in two countries

A

theory of comparative cost advantage

47
Q

nation with export the commodity whose production requires intensive use of the nations relatively abundant

A

endowment theory/ Hecksher-Ohlin model

48
Q

with an abundance of cheap labor would export labor intensive products vice versa

A

endowment theory/ Hecksher-Ohlin model

49
Q

trade of all goods and services worldwide

A

international trade

50
Q

fundamental to transactions of a country with the rest of the world

A

foreign trade

51
Q

covers much broader scope since it refers to commercial transactions that are carried out in the world

A

international business

52
Q

encompasses socio-economic reform process of eliminating trade investment, information technology. .. . across the world

A

globalization

53
Q

how trade and technology have made the world into a more connected and interdependent place

A

globalization

54
Q

countries that are implementing more open trade and free market policies

A

emerging economies

55
Q

fundamental global shift in which industrialized country dependent developing economies begin to grow

A

decoupling

56
Q

two-way flow of export and imports of goods and services

A

trade

57
Q

in flow of capital from abroad for investing in domestic plant and equipment for the production of goods or services

A

foreign direct investment

58
Q

investment made by a company or individual in one country into business interests located in other country (example mcdonald)

A

foreign direct investment

59
Q

corporate practice of acquiring or producing quality goods or services abroad at a lower cost thereby eliminating domestic production

A

outsourcing

IBT (1 decks)

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