BUSI 311 FINAL QUESTIONS AND ANSWERS EXAM LATEST
UPDATE.Buy Quality Materials!
VRIO Framework
Analyzes value, rarity, imitability, and organization of firm resources
Factors Influencing Foreign Exchange Rates
inflation
interest rates
economic growth
political stability
and geopolitical events
Foreign Exchange Rate
Price of one currency in terms of another
What determines the foreign exchange rate?
1. Relative price differences & PPP
2. Interest rates and money supply
3. Productivity and balance of payments
4. Exchange rate policies
5. Investor psychology
Appreciation
Increase in currency value relative to another
Depreciation
Loss in currency value relative to another
Gold Standard
International monetary system from 1870 to 1914
Bretton Woods System
International monetary system from 1944 to 1973
International Monetary Fund (IMF)
Organization underpinning the post-Bretton Woods system
Regional Economic Integration
Efforts to reduce trade barriers within a region
Global Economic Integration
Efforts to reduce trade barriers globally
Benefits of economic integration
political: promotes peace and builds confidence in multilateral trading system
economical: free trade and investment raises incomes and stimulates economic growth.
disputes are handled constructively
objections of economic integration
(country joining the EU question)
- job loss as there are more imports due to free trade
- loss of economic independence as the EU looks to blend economies into one
- will cause economic and political policies to change in order to fit into the agreements
within the EU
FTA
UPDATE.Buy Quality Materials!
VRIO Framework
Analyzes value, rarity, imitability, and organization of firm resources
Factors Influencing Foreign Exchange Rates
inflation
interest rates
economic growth
political stability
and geopolitical events
Foreign Exchange Rate
Price of one currency in terms of another
What determines the foreign exchange rate?
1. Relative price differences & PPP
2. Interest rates and money supply
3. Productivity and balance of payments
4. Exchange rate policies
5. Investor psychology
Appreciation
Increase in currency value relative to another
Depreciation
Loss in currency value relative to another
Gold Standard
International monetary system from 1870 to 1914
Bretton Woods System
International monetary system from 1944 to 1973
International Monetary Fund (IMF)
Organization underpinning the post-Bretton Woods system
Regional Economic Integration
Efforts to reduce trade barriers within a region
Global Economic Integration
Efforts to reduce trade barriers globally
Benefits of economic integration
political: promotes peace and builds confidence in multilateral trading system
economical: free trade and investment raises incomes and stimulates economic growth.
disputes are handled constructively
objections of economic integration
(country joining the EU question)
- job loss as there are more imports due to free trade
- loss of economic independence as the EU looks to blend economies into one
- will cause economic and political policies to change in order to fit into the agreements
within the EU
FTA
