Mgt 405 Midterm 2 Review

MGT 357: MIDTERM 2 REVIEW:
SETTING UP A WHOLLY OWNED SUBSIDIARY IN A FOREIGN COUNTRY
GREENFIELD INVESTMENR
FIRMS IN THE GLOBAL MARKETPLACE FACE TWO TYPES OF PRESSURES
COST REDUCTION & LOCAL RESPONSIVENESS
THE % INCREASE IN NET PROFITS OVER TIME
PROFIT GROWTH
WHAT MARKET BRINGS TOGETHER THOS WHO WANT TO INVEST $$ AND THOSE WHO WANT TO BORROW?
CAPITAL MARKET
4 BASIC STRATEGIES TO COMPETE IN THE INTERNATIONAL ENVIRONMENT?
LOCALIZATION
INTERNATIONAL
TRANSNATIONAL
STRANDARDIZATION
THE ________ OF FDI REFERS TO THE AMOUNT AND USE OF FDI UNDERTAKEN OVER A YEAR.
FLOW
FORWARD RATE = THE FUTURE % OF A CURRENCY SWAP AGREED TODAY
THESE TARIFFS IN ONE WORD ARE LVEIED AS A FIXED CHANGE FOR EACH UNIT OF A GOOD THAT IS IMPORTED:
SPECIFIC TARIFFS
WHAT ARE THE TWO MAIN FACTORS FOR THE TREMENDOUS GROWTH IN THE GLOBAL CAPITAL MARKET?
DEREGULATION & ADVANCES IN TECHNOLOGY
IN 1976 WHAT WAS THE AGREEMENT THAT FORMALIZED THE FLOATING RATE AGREEMENT:
JAMACIA AGREEMENT
MIDTERM 2 IS BASED ON CHAPTERS:
7-13
THIS COUNTRY IS THE LARGEST SOURCE COUNTRY OF FDI SINCE WWII
USA
2 MAIN FUNCTIONS OF FOREIGN EXCHANGE MARKET?
CURRENCY CONVERSION & INSURANCE AGAINST FOREIGN EXCHANGE RISK (HEDING)
NAME OF FIXED RATE AGREEMENT FROM 1944:
THE BRETTON WOODS AGREEMENT
THESE ARE ECONOMIES THAT ARISE FROM PERFORMING A VALUE CRETING ACTIVITY IN THE BEST PLACE:
LOCATION ECONOMY
WHO BEARS RISK AND COST OF OPENING IN A FOREIGN MARKET IN A LICENSING AGREEMENT?
LICENSEE
NEW YEARS DAY 1993 THIS REGIONAL INTEGRATION BLOCK MOVED TOWARDS A SINGLE AGREEMENT:
THE EUROPEAN UNION

REVIEW OUTLINE:
THE POLITICAL ECONOMY OF INTERNATIONAL TRADE: CH 7
TARIFFS (SPECIFIC VS. AD VOLAREM TARIFFS)
SUBSIDIES
QUOTAS (IMPORT QUOTAS; TARIFF RATE QUOTAS; VOLUNTARY EXPORT RESTRAINTS; QUOTA RENT)
LOCAL CONTENT REQUIREMENT
POLITICAL ARGUMENTS FOR FREE TRADE
ANTIDUMING AND ITS POLICIES
INFANT INDUSTRY ARGUMENT
STRATEGIC TRADE POLICY
GATT BECOMINING THE WTO
URAGUAY ROUND 1980S, DOHA