International Business and Money Summary (all-inclusive) Questions and Answers 2023

Arbitrage - -The act of simultaneously buying and selling the same or equivalent assets or commodities for the purpose of making certain, guaranteed profits. -Market equilibrium - -Exists when no profitable arbitrage opportunities exist. -Interest rate parity - -An arbitrage condition that mus...

How businesses can decide on the best use of scarce resources. - -Managerial Economics is best defined as the economic study of -We should consider shifting to products where we can earn even more money - -Which of the statements below best illustrates the use of the market process in determining...

Gold Standard - -A monetary system in which paper money and coins are equal to the value of a certain amount of gold -dirty float - -A system under which a country's currency is nominally allowed to float freely against other currencies, but in which the government will intervene, buying and sel...

Jameson Electric Corp. would use the foreign exchange market when it needs to - -convert currency. -Able Appliances needs to convert the pounds it earns from selling products in Great Britain to dollars. What mechanism allows the company to make this conversion? - -foreign exchange market -For...

What determines foreign exchange rates? - -Foreign Exchange Rate: price of one currency such as the dollar in terms of another, such as the euro. Appreciation: increase in the value of the currency Depreciation: Is a loss in the value of the currency When US sells to China, they demand to be ...

What is the statement of account that shows all transactions between the residents of one country and the rest of the world for a given period of time called? a. services balance b. income balance c. balance of payments d. trade balance - -c. balance of payments -How many major accounts compr...

Absolute advantage - -a situation where a country can produce a good or service at a lower cost than other countries. -Balance of payments - -the difference between the amount of money that comes into a country and the amount that goes out of a country. -Balance of trade - -the difference betw...

1) ____________ is used as an effort to increase national wealth, improve the balance of trade, and to protect domestic industries/workers by imposing restrictions on imports. - -Protectionism -2) Which of these is NOT normally considered a barrier to entry? a. Being unable to access specific bu...

What are the differences between a floating exchange and a fixed exchange rate policy? - -1.) 1. Floating Exchange Rate Policy: a government policy to let demand and supply conditions determine exchange rates 2. Fixed Exchange Rate Policy: a government policy to set the exchange rate of a currency...

Jameson Electric Corp. would use the foreign exchange market when it needs to - -convert currency. -Able Appliances needs to convert the pounds it earns from selling products in Great Britain to dollars. What mechanism allows the company to make this conversion? - -foreign exchange market -For...

From the seller's perspective, what is the main benefit of planning a sales call? - -Helps meet call objectives -From the buyer's perspective, what is the main benefit to having the salesperson plan their sales call? - -Helps gain respect and confidence for the salesperson -What are the 3 st...

Marketing Mix or 4 P's: - -Product Price Place Promotion -Core Aspects of Marketing: - --Marketing helps create value -Marketing affects various stakeholders -Marketing can be performed by both individuals and organizations -Marketing is about satisfying customer needs and wants -Ma...