Term
|
Definition
|
|
Term
|
Definition
| a tariff levied as a fixed charge for each unit of good imported |
|
|
Term
|
Definition
| a tariff levied as a proportion of the value of an imported good |
|
|
Term
|
Definition
| gov financial assitance to a domestic producer |
|
|
Term
|
Definition
| a direct restriction on the quantity of some good that may be imported into a country |
|
|
Term
| Voluntary export restraint (VER) |
|
Definition
| a quota on trade imposed by the exporting country, typically at the request of the importing country's gov |
|
|
Term
|
Definition
| a requirement that some specific fraction of a good be produced domestically |
|
|
Term
| Administrative Trade Policies |
|
Definition
| Bureaucratic rules designed to make it difficult for imports to enter a country |
|
|
Term
|
Definition
| selling goods in a foreign market at below their costs of production or below their fmv |
|
|
Term
|
Definition
| policies designed to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign comp |
|
|
Term
|
Definition
|
|
Term
|
Definition
| new industries in developing countries must be temp protected from intnl comp to help them reach a position where they can compete on world mkts with the firms of developed nations |
|
|
Term
|
Definition
| gov policy aimed at improving the comp position of a domestic industry or firm in the world mkt |
|
|
Term
|
Definition
| amt of FDI undertaken over a given time period, usually a yr |
|
|
Term
|
Definition
| the total accum value of foreign owned assets at a given time |
|
|
Term
|
Definition
| flow of FDI out of a country |
|
|
Term
|
Definition
| flow of FDI into a country |
|
|
Term
| Gross fixed capital formation |
|
Definition
| summarizes the total amount of capital invested in factories, stores, office buildings, and the like |
|
|
Term
|
Definition
| argument that combining location specific assets or resource endowments and the firms on unique assets often requires FDI; it requires the firm to establish production facilities where those foreign assets or resource endowments are located |
|
|
Term
|
Definition
| sale of products produced in one country to residents in another country |
|
|
Term
|
Definition
| occurs when a firm licenses the right to produce its product, its production processes, or its brand name or trademark to another firm; in return for giving the licensee these rights, the licensor collects a royalty fee on every unit the licensee sells |
|
|
Term
|
Definition
| the argument that firms prefer FDI over licensing to retain control over know how manufacturing, marketing, and strategy or because some firm capanilities are not amenable to licensing; also known as the market imperfections approach |
|
|
Term
|
Definition
| industry composed of a limited number of large firms |
|
|
Term
|
Definition
| arises when two or more enterprises encounter each other in different regional markets, national markets, or industries |
|
|
Term
| location specific advantages |
|
Definition
| advantages that arise from utilizing resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets |
|
|
Term
|
Definition
|
|
Term
| balance of payment accounts |
|
Definition
| national accounts that track both payments and receipts from other countries |
|
|
Term
|
Definition
| in balance of payments acct, records transactions involving the eport and import of goods and services |
|
|
Term
|
Definition
| FDI undertaken to serve the home market |
|
|
Term
| Regional economic integration |
|
Definition
| agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services and factors of production between each other |
|
|
Term
|
Definition
| a group of countries committed to removing all barrier to the free flow of goods and services between each other, but pursuing independent trade policies |
|
|
Term
| European Free Trade Assoc (EFTA) |
|
Definition
| a free trade assoc including Norway, Iceland, Liechtenstein and Switz |
|
|
Term
|
Definition
| a group of countries commited to removing all barriers to the free flow of goods and services between each other and the pursuit of a common external trade policy |
|
|
Term
|
Definition
| a group of countries commited to removing all barriers to the free flow of goods, services, and factors of production between each other and the pursuit of a common external trade policy |
|
|
Term
|
Definition
| a group of countries commited to removing all barriers to the free flow of goods, services, and factors of production; the adoption of a common currency; the harmonization of tax rates; and the pursuit of a common external trade policy |
|
|
Term
|
Definition
| a central political apparatus that coordinates economic, social and foreign policy |
|
|
Term
|
Definition
| trade created due to regional economic integration; occurs when high domestic producers are replaced by low cost foreign producers in a free trade area |
|
|
Term
|
Definition
| trade diverted due to regional economic integration; occurs when low cost foreign suppliers outside a free trade area are replaced by higher cost foreign suppliers in an area of free trade |
|
|
Term
|
Definition
| economic group of 27 euro nations; established a customs union, it is moving toward economic union, formerly the European Community |
|
|
Term
|
Definition
| body responsible for proposing EU legislation, implementing it and monitoring compliance |
|
|
Term
|
Definition
| ultimate controlling authority within EU |
|
|
Term
|
Definition
| elected EU body that consults on issues proposed by the European Commision |
|
|
Term
|
Definition
| treaty signed in 2007 that made the Euro Parliament the co-equal legislator for almost all european laws and also created the position of the president of the Euro Council |
|
|
Term
|
Definition
| supreme appeals court for EU law |
|
|
Term
|
Definition
| 1987 act adopted by members of the Euro Community that commited member countries to establishing an economic union |
|
|
Term
|
Definition
| Treaty agreed to in 1991 but not ratified until 1/1/94 that committed the 12 member states of the Euro Community to adopt a common currency |
|
|
Term
|
Definition
| one where similarities in the underlying structure of economic activity make it feasible to adopt a single currency |
|
|
Term
| North American Free Trade Agreement (NAFTA) |
|
Definition
| free trade between Canada, US and Mexico |
|
|
Term
|
Definition
| 1969 agreement between Bolivia, Chile, Ecuador, Colombia, and Peru to establish a customs union |
|
|
Term
|
Definition
| Pact between Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area |
|
|
Term
| Central American Common Market |
|
Definition
| a trade pact between Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which began in the early 1960s but collapsed in 1969 due to war |
|
|
Term
| Central American Free Trade Agreement (CAFTA) |
|
Definition
| agreement between members of Central American Common Market joined by Dom Rep to trade freely with the US |
|
|
Term
|
Definition
| assoc of english speaking caribbean states that are attempting to establish a customs union |
|
|
Term
| Caribbean Single Market and Economy (CSME) |
|
Definition
| unites six CARICOM members in agreeing to lower trade barriers and harmonize macroeconomic and monetary policies |
|
|
Term
| Association of Southeast Asian Nations (ASEAN) |
|
Definition
| attempt to establish free trade between Brunei, Cambodia, Indonesia, Laos, Malysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam |
|
|
Term
|
Definition
| made up of 21 member states whose goal is to increase multilateral coop in view of the economic rise of the Pacific Nations |
|
|
Term
|
Definition
| a market for converting the currency of one country into that of another country |
|
|
Term
|
Definition
| the rate at which one currncy is converted into another |
|
|
Term
|
Definition
| the risk that changes in exchange rates will hurt the profitability of a bus deal |
|
|
Term
|
Definition
| involves the short term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates |
|
|
Term
|
Definition
| involves borrowing in one currncy where interest rates are low, and then using the proceeds to invest in another currency where interest rates are high |
|
|
Term
|
Definition
| the process of insuring ones bus against foreign exchange risk by using forward exchanges of currency swaps |
|
|
Term
|
Definition
| the exchange rate at which a foreign exchange dealer will convert one currency into another currency on a particular day |
|
|
Term
|
Definition
| when two parties agree to exchange currency and execute the deal at some specific date in the future |
|
|
Term
|
Definition
| the exchange rate governing forward exchange transactions |
|
|
Term
|
Definition
| simultaneous purchase and sale of a given amount of foreign exchange for two different value dates |
|
|
Term
|
Definition
| purchase of securities in one market for the immediate resale in another to profit from a price discrepancy |
|
|
Term
|
Definition
| in comp markets free of transportation barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency |
|
|
Term
|
Definition
| a market which has no impediments to the free flow of goods and services such as trade barriers, and prices reflect all available public info |
|
|
Term
|
Definition
| when traders move like a herd, all in the same direction and at the same time, in response to each other's perceived actions |
|
|
Term
|
Definition
| one in which prices do not reflect all available info |
|
|
Term
|
Definition
| draws on economic theory to construct sophisticated econometirc models for predicting exchange rate movements |
|
|
Term
|
Definition
| uses price and volume data to determine past trends, which are expected to continue into the future |
|
|
Term
| freely convertable currency |
|
Definition
| a countrys currency is freely convertible when the gov of that country allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it |
|
|
Term
| externally convertible currency |
|
Definition
| nonresidents can convert their holdings of domestic currency into foreign currency, but the ability of residents to convert the currency is limited in some way |
|
|
Term
|
Definition
| a currency is non convertible when both residents and nonresidents are prohibited from converting their holdings of that currency into another currency |
|
|
Term
|
Definition
| residents convert domestic currency into a foreign currency |
|
|
Term
|
Definition
| trade of goods and services for other goods and services |
|
|
Term
|
Definition
| extent to which income from individ transactions is affected by fluctuations in foreign exchange rates |
|
|
Term
|
Definition
| the extent to which the reported consolidated results and balance sheets of a corp are affected by fluctuations in foreign exchange values |
|
|
Term
|
Definition
| the extent to which a firms future international earning power is affected by changes in exchange rates |
|
|
Term
|
Definition
| attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate and paying foreign currency payables before they are due when a currency is expected to appreciate |
|
|
Term
|
Definition
| delaying collection foreign currency receivables if that currency is expected to appreciate and delaying payables if it is expected to decline |
|
|
Term
| International Monetary System |
|
Definition
| institutional arrangements countries adopt to govern exchange rates |
|
|
Term
|
Definition
| a system under which the exchange rate for converting one currnecy into another is continuously adjusted depending on the laws of supply and demand |
|
|
Term
|
Definition
| currency value is fixed relative to a referance currency |
|
|
Term
|
Definition
| a system under which a countrys currency is nominally allowed to float freely against other currencies, but in which the gov will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value |
|
|
Term
|
Definition
| a system under which the exchange rate for converting one currency into another is fixed |
|
|
Term
| European Monetary System (EMS) |
|
Definition
| a system to regulate fixed exchange rates before intro of the euro |
|
|
Term
|
Definition
| the practice of pegging currencies to gold and guaranteeing converability |
|
|
Term
|
Definition
| the amount of currency needed to buy one ounce of gold |
|
|
Term
| balance of trade equilibrium |
|
Definition
| reached when the income a countrys residents earn from exports equals what they pay for imports |
|
|
Term
|
Definition
| system under which some currencies are allowed to float freely, but the majority are either managed by gov intervention or pegged to another currency |
|
|
Term
|
Definition
| situation in which a country cannot service its foeign debt obligations, whether private sector or gov debt |
|
|
Term
|
Definition
| arises when people behave recklessly because they know they will be saved if things go wrong |
|
|
