BF150 Quiz 1 Review

The situation where a capital-intensive country exports products that are capital intensive is an example of the___________

• Purchasing Power Parity Rule

• Heckscher-Ohlin theory

• International Trade

• Forward Exchange Rate

___________ allows businesses to source factors of production from different countries and is expected to lead to reducing their costs and improving their quality.

• Foreign Markets

• Globalization of Markets

• Globalization of Production

• International Trade

The approach to exchange rate forecasting that uses price and volume data to determine past trends which are expected to continue in the future is called__________

• Technical Analysis

• International Trade

• Fundamental Analysis

• Exchange Market Data

Assume the interest rate on borrowings in Nigeria is 1 percent and the interest rate on deposits in Nigerian banks is 6 percent. A company borrows in Euro, converts the money into Nigeria Naira and deposits it in a Nigerian bank. This situation is an example of____

• Globalization

• International Trade

• Foreign Exchange

• Carry Trade

The risk that a company's equities, assets, liabilities, or income will change in value as a result of exchange rate changes is called______

• Translation Exposure

• International Market Exposure

• Globalization

• Forward Exchange Rate

Globalization of ______ allows businesses to source factors of production from different countries and is expected to lead to reducing their costs and improving their quality. 

_____ is any business that has productive activities in two or more countries.

_________ involves the establishment of a new operation in a foreign country

__________ refers to a range of barter-like agreements by which goods and services can be traded for other goods and services.

_______ is a tax levied on imports (or exports).