Exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another.
Exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another. This involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
Amber, a French distillery exports its whisky to the U. The distillery is paid in dollars, but it cannot be spent in France until they are converted to Francs. So the foreign exchange market is used by this business to a.
Home Essays MGT Final Exam / % MGT Final Exam / % correct answers Topics: International trade, Foreign exchange market, Free trade Pages: 16 . View Test Prep - MGT Final Exam from MGT at University of Phoenix. 1. The rapid globalization of capital markets enables individuals and institutions based in one nation to invest in. Home Essays MGT Final Exam / % MGT Final Exam / % correct answers Topics: International trade, Foreign exchange market, Free trade Pages: 16 ( words) Published: March 3,
Which among the following is a first-mover advantage? Ability to create switching costs that tie customers into their products or services. Ability to avoid the often substantial costs of establishing manufacturing operations in the host country. Ability to avoid incurring pioneering costs.
Ability to side-step regulatory risks, especially in developing countries. Issued by the importer, the letter of credit represents a promise of payment.
Which of the following is true of reactive firms? They may not even consider exporting until their domestic market is saturated. They create excess productive capacity and actively hunt for opportunities in foreign markets.
Almost all large firms fall under this category. They systematically scan foreign markets for profitable export opportunities. Which of the following helps explain why exporters still account for only a tiny percentage of U.
Tariffs; FDI restrictions b. Lack of export opportunities; buoyant demand within U. Unfamiliarity; intimidation by the complexities d. Regulatory burden; barriers to free trade Source effects and country of origin effects always have a negative impact on the firm. This refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.
According to the text, this is probably the most important aspect of cultural differences in a global market.
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Final Exam MGT Describe the two major drivers to globalization and two examples of 'reasons to go global'. (Please note that the drivers of globalization not the same as the 'reasons to go global.') ( points for each correct answer, total 2).
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