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Definition
| A monetary system where the exchange market determines the value of a currency. |
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| 4 Main Global Currencies? |
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Definition
| Dollar, Euro, Yen and Pound |
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Definition
| Where a currency is based off the value of another currency. |
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Definition
| When a country tries to keep its currency with in a range of another countries currency. |
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Definition
A situation where countries agree to fix their currencies at a certain agreed upon rate.
E.M.C fixed currencies to prevent large fluctuation in values. |
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Definition
| Currencies based on the value of gold and guarantee their convertibility. |
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Definition
| Amount of money needed to purchase one ounce of gold. |
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Definition
| When countries try to lower their exchange rate, and as a result local industries receive a boost in demand and employment. |
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Definition
| Fixed Exchange system was developed and all currencies were fixed to gold. Countries could no long devalue their currencies for competitive purposes and no more than 10%. |
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Definition
| An institution that prevents competitive devaluation and prevents price inflation. Its formation was based on world financial crisis that was happening at the time. |
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Term
| Why did the Fixed Exchange System Fail? |
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Definition
| Weakness of the US dollar and US economic system. Inflation during V.W. due to the need of money. The US dollar became weak and no longer could be converted to gold |
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Definition
| An agreement that is still in use today, it states that floating rates are acceptable and gold was to no longer be used as a reserve asset. |
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Term
| 3 Types of Monetary Crises |
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Definition
| Currency Crisis, Banking Crisis and Foreign Debt Crisis |
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Term
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Definition
| When your firm enters a market ahead of competitor, you gain the advanatage of building of sales volumes and to gain economies of scale. |
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Definition
| A foreign contractor sets up the factory/plant and hands the keys over when its ready for operation. |
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Term
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Definition
| Agreement to let a forign company use trademarked good or copyrights for a set period of time in exchange for royalty fees. (Disneyland Japan) |
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Term
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Definition
| Build your own subsidiary from the ground up. |
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Definition
| Where two firms join together to attain levels of business previously unobtainable before the agreement. |
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Definition
1) Potential Entrants
2) Buyers
3) Substitutes
4)Suppliers
5) Industry Competitors |
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Definition
| Many retailers in the market and none have serious control. |
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Term
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Definition
| Frim's pricing strategy in one markets has an impact on a rivals pricing strategy in another. |
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Term
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Definition
| Low pricing worldwide to build global sales levels, take large losses initially. |
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