BBA 411 Exam Questions With Answers
Graded A+
Globalization
the shift toward a more integrated and interdependent world economy
Globalization of markets
the merging of historically distinct and separate national markets into one huge global marketplace
Globalization of production
the sourcing of goods and services from locations around the globe to take advantage of national
differences in the cost and quality of factors of production
4 factors of production
Labor,Energy, Land, Capital
WTO
Responsible for policing the world trade system and make sure treaty rules are followed.
IMF
Maintain order in the International Monetary Fund
World bank
Promotes economic development
United Nations
Maintains peace, develops friendly relations, solve international issues, and protect human rights.
G20
Established to form a policy response to financial crisis in developing countries.
Factors in driving globalization
Decline in trade barriers and technological change
What 3 technological changes have occurred
Computing, internet, and transportation
Changing global demographics
America is falling behind since 1960, due to other nations developing markets
Why is managing a international business difficult
They differ in Cultures, political, economic, and legal systems
Foreign exchange market
, A market for converting the currency of one country into that of another country
Exchange rate
The rate at which one country's currency can be exchanged for that of another
Foreign exchange risk
the adverse consequence of unpredictable changes in the exchange rate
Who uses currency conversion?
Tourists and international companies
Spot exchange
the rate at which a foreign exchange dealer converts one currency into another currency on a
particular day
Forward exchange
When two parties agree to exchange currency and execute a deal at some specific date in the future.
The foreign exchange market is never located in one spot
true
the foreign exchange market never closes
true
There is only 1 foreign exchange market
true
Freely convertible currencies
When the country's government has no restrictions on who can convert currency
Externally Convertible Currency
only nonresidents can convert their holdings of domestic currency into a foreign currency
Nonconvertible currencies
Cant be converted into a foreign currency
Capital flight
A rush to convert holdings into another currency
Counter trade
barter-like agreements by which goods and services can be traded
Transaction Exposure
Graded A+
Globalization
the shift toward a more integrated and interdependent world economy
Globalization of markets
the merging of historically distinct and separate national markets into one huge global marketplace
Globalization of production
the sourcing of goods and services from locations around the globe to take advantage of national
differences in the cost and quality of factors of production
4 factors of production
Labor,Energy, Land, Capital
WTO
Responsible for policing the world trade system and make sure treaty rules are followed.
IMF
Maintain order in the International Monetary Fund
World bank
Promotes economic development
United Nations
Maintains peace, develops friendly relations, solve international issues, and protect human rights.
G20
Established to form a policy response to financial crisis in developing countries.
Factors in driving globalization
Decline in trade barriers and technological change
What 3 technological changes have occurred
Computing, internet, and transportation
Changing global demographics
America is falling behind since 1960, due to other nations developing markets
Why is managing a international business difficult
They differ in Cultures, political, economic, and legal systems
Foreign exchange market
, A market for converting the currency of one country into that of another country
Exchange rate
The rate at which one country's currency can be exchanged for that of another
Foreign exchange risk
the adverse consequence of unpredictable changes in the exchange rate
Who uses currency conversion?
Tourists and international companies
Spot exchange
the rate at which a foreign exchange dealer converts one currency into another currency on a
particular day
Forward exchange
When two parties agree to exchange currency and execute a deal at some specific date in the future.
The foreign exchange market is never located in one spot
true
the foreign exchange market never closes
true
There is only 1 foreign exchange market
true
Freely convertible currencies
When the country's government has no restrictions on who can convert currency
Externally Convertible Currency
only nonresidents can convert their holdings of domestic currency into a foreign currency
Nonconvertible currencies
Cant be converted into a foreign currency
Capital flight
A rush to convert holdings into another currency
Counter trade
barter-like agreements by which goods and services can be traded
Transaction Exposure
