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International Business Final
International Business Final
22
Business
Undergraduate 3
12/08/2013

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Cards

Term
Float System
Definition
A monetary system where the exchange market determines the value of a currency.
Term
4 Main Global Currencies?
Definition
Dollar, Euro, Yen and Pound
Term
Pegged Exchange Rate
Definition
Where a currency is based off the value of another currency.
Term
Dirty Float
Definition
When a country tries to keep its currency with in a range of another countries currency.
Term
Fixed Exchange Rate
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.
Term
Gold Standard
Definition
Currencies based on the value of gold and guarantee their convertibility.
Term
Gold Par Value
Definition
Amount of money needed to purchase one ounce of gold.
Term
Competitive Devaluation
Definition
When countries try to lower their exchange rate, and as a result local industries receive a boost in demand and employment.
Term
Bretton Woods System
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%.
Term
IMF
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.
Term
Why did the Fixed Exchange System Fail?
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
Term
Jamaica Agreement
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.
Term
3 Types of Monetary Crises
Definition
Currency Crisis, Banking Crisis and Foreign Debt Crisis
Term
First Mover Advantage
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.
Term
Turnkey Project
Definition
A foreign contractor sets up the factory/plant and hands the keys over when its ready for operation.
Term
Licensing
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)
Term
Greenfield Statergy
Definition
Build your own subsidiary from the ground up.
Term
Strategic Alliance
Definition
Where two firms join together to attain levels of business previously unobtainable before the agreement.
Term
Five Forces Model
Definition
1) Potential Entrants
2) Buyers
3) Substitutes
4)Suppliers
5) Industry Competitors
Term
Fragmented Retail System
Definition
Many retailers in the market and none have serious control.
Term
Multi-Point Pricing
Definition
Frim's pricing strategy in one markets has an impact on a rivals pricing strategy in another.
Term
Experience Curve Picing
Definition
Low pricing worldwide to build global sales levels, take large losses initially.
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