Term
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Definition
| The exchange rate between two currencies for delivery within two business days |
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Term
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Definition
| The exchange rate between two currencies for delivery in the future. |
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Term
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Definition
| When a currency's forward rate quotes are stronger than spot rates. |
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Term
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Definition
| When a currency's forward rate quotes are weaker than spot rates. |
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Term
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Definition
| Currency exchange rates directly between non-U.S. dollar currencies |
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Term
| What decides exchange rates? |
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Definition
1. Real exchange rate vs Nominal exchange rate (PPP theory)
2. Government control
3. BOP and supply-demand relationship |
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Term
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Definition
| determines the real cost of borrowing |
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Term
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Definition
| approximated by subtracting inflation from the nominal interest rates |
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Term
| Expected high inflation rates |
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Definition
| encourage borrowing because the loan will be repaid with cheaper money |
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Term
| unexpected high inflation rates |
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Definition
discourage borrowing
1. u.s. prime rate
2. london interbank offer rate |
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Term
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Definition
total of a country's unemployment and inflation rates
indicator of economic success (higher score = worse economy) |
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Definition
| regulate the amount of growth or contraction of a nation's monetary stock |
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Term
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Definition
| regulate a government's money receipts through taxes and its expenditure |
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Term
| Measurements of an economy's size |
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Definition
Gross National Product
Gross Domestic Product |
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Term
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Definition
GNP
total of all FINAL goods and services produced BY a country |
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Definition
GDP
the total of all FINAL goods and services produced IN a country |
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Term
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Definition
| total GNP and GDP divided by the population of a country (higher the value the more advanced the economy) |
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Term
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Definition
a measure of how a nation's income is apportioned among its people
data are: gathered by World Bank, published yearly in the World Development Indicators |
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Term
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Definition
Disposable income
Discretionary income |
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Term
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Definition
| the amount of money left after paying taxes |
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Term
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Definition
| disposable income minus essential purchases |
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Term
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Definition
concern in developed nations
population density |
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Term
| concern in developed nations |
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Definition
declining birthrates causing concern in governments of industrialized nations
1. EU will have a shortage of workers
2. Japan has an old population |
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Term
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Definition
a measure of the number of inhabitants per area unit
densely populated countries tend to make product distribution and communications simpler |
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Term
| protestant and confucian work ethic |
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Definition
| work is a moral value, idleness is unfavorable |
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Term
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Definition
hinduism
buddhism
confucianism
taoism
feng shui
shintoism |
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Term
| Hofstede's Dimensions of Culture |
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Definition
1. Individualism vs. Collectivism
2. Large vs. Small Power Distance
3. Strong vs. Weak Uncertainty Avoidance
4. Masculinity vs. Femininity
5. Long term orientation |
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Term
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Definition
determined by central banks
1) interest rate
2) currency value
3) direct money supply to circulation |
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Term
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Definition
determined by the government
1) tax
2) tariff
3) government expenditure |
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