Exam 3: Financial Environment

Balance of payments between nations is based on which of the following principles of accounting?

The mechanisms (according to the theory of international trade and balance of payments)for producing self-correction in out-of-balance accounts is accomplished Through:

Currencies of many _____________________ are pegged (or fixed)to one of the major currencies or to a basket of major currencies?

In 1969,the IMF created ____________________________,which are special account entries on the IMF books designed to provide additional liquidity to support Growing world trade.

In the area of "change the product mix," corporate response to the recession could be to push relatively _________________ product lines while deemphasizing _______________ lines.

Forward currency markets typically exist for the ______________ currencies.

When international transactions occur,_______________ is the monetary mechanism that allows the transfer of funds from one nation to another.

The Japanese yen has increasingly become a regional transaction currency in _____________.

Explain how knowledge of the spot and forward exchange rate market helps international marketers to be successful in the global arena.

If payment on a transaction is to be made immediately,the purchaser has no choice other than to buy foreign exchange on:

Participating nations may use SDRs as a source of currency in a _________ transaction.

Special Drawing Rights (SDRs)are special account entries on the World Bank books.

Each country has its own currency through which it expresses the value of its products.

With respect to balance of payments calculation,when a German tourist visits the United States and spends money on meals and lodging,it is a(n)___________ to the U.S.trade in services balance.

Exchange rate stability cannot be imposed by adoption of ______________________ and official intervention in the foreign exchange markets.

The extent to which a foreign company changes dollar prices of its products in the U.S.market as a result of exchange rate fluctuations is called:

Protecting oneself against potential loss is called:

According to the theory of international trade and balance of payments,a surplus or deficit in a country's basic balance should not be self-correcting.

Increased demand for Asian _____________ has helped the region rebound quickly from the 1997 currency crisis.

The __________________ of a nation summarizes all the transactions that have taken place between its residents and the residents of other countries over a specified Time period (usually a month,quarter or a year).