Intl Business Final Review Essay

Submitted By alexad88
Words: 663
Pages: 3

Wednesday, November 28, 2012
Final exam review – multiple choice – 50 questions – no scantron 1. Definition of an inverted tariff 2. Effective rate of protection. 3. Embargos – textbook (also mentioned in class) 4. Geocentrism 5. Strategies for hedging with exchange rate fluctuations 6. Special drawing rights - SDR’s – issued by the International Monetary Fund 7. Tariffs and purpose of tariffs 8. Definition of international monetary system – 3:00 – who controls it. etc 9. International monetary fund – who controls is, when was it established (IMF) 10. GATT – general agreement on trade. Started with ITO (but never happened because it was a treaty organization, failed to pass… organization). An agreement can be entered into by the U.S. President. … 4:00. Rolled into WTO (world trade organization) 11. Forward contract quotations – different methods (also in textbook) 12. Special drawing rights 13. Strategies in the event of evaluation or devaluation - value of currency going down 14. Definition of the term swap – currency swaps. What is a swap? Swapping currency b/w central banks 15. Definition of a draft: types of drafts 16. World Bank Group 17. An order bill of lading 18. Time draft: 2 types: site draft (payable on site and presentation) and time draft (allows time between payment and presentation). Bank acceptance – if accepted by draft (more likely to have), trade acceptance – accepted by a company 19. Negotiable instrument 20. D/A (documents upon acceptance – makes it a time draft), as opposed to a D/B draft 21. Pro-forma invoice – a document that has been submitted that has excruciating specific detail. If you don’t do it, you’re gonna get screwed. 22. Kossack’s rules of business: never run out of cash, take the cash 23. Endorsements …….. an order to a bearer instrument ?? 24. Adam Smith’s contribution to trade theory 25. David Ricardo’s contribution to trade theory 26. Hector.. theory (14:00) 27. Product life cycle theory 28. Porter’s contribution to trade theory – must look up in textbook 29. Definition of a tariff, quota, subsidy and voluntary export restraint program (our government talks to another government saying to restrain exports to our country). 3 types of tariffs: ad-valorem (percentage of value), specific (16:00), compound (combination of both) 30. Who benefits from tariffs? Who pays the cost of tariffs? 31. Who benefits from subsidies and who pays the cost of subsidies 32. Economic integration movements (different types and what they involve) regional and subregional economic integration (textbook) 33. Trade creation and trade diversion as appeared in textbook 34. Difference between a spot and a foreign exchange contract 35. The impact of interest rates on exchange…