Integration and Exchange Rates

What is Economic Integration?

• the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics.

• the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year.

• The process of a country implanting integrating new policies in the government.

• A process in which countries collaborate to integrate their policies together such as free trade ideas and custom unions.

Goods and services that are bought from other countries.

• imports

• joint venture

• exports

• infrastructure

The value of of one currency expressed in terms of another currency.

What can cause exchange rates to change

• Us investment prospects increase

• Us interest rates increase

• location

• Trade Barriers

Which are benefits of a small organization?

• Often able to adapt quickly to meet changing customer needs

• May be able to set prices that other firms have to follow

• Can be managed and controlled by the public

• May be diversified in several markets and products, so risks are spread

Government intervention is the the regulatory action taken by a government that aims to change decisions made by individuals, organizations, or groups regarding economic and social matters.

• True

• False

A total ban on imports or exports of a product.

• G20

• embargo

• exporting

• dumping

US demand of foreign goods can change exchange rates?

• True

• False

Being unable to offer a more specialized and exclusive service to customers is a disadvantage of being a business that operates on a large scale .

• True

• False

What is a Custom Union?

• An agreement between countries, similar to free trade areas, but they barrier against any import into the customs union.

• An group that increases the opportunities for exporting and importing products.

• A group of governments that run with a common currency and central bank.

• All of the above