Business Finance 2 Dersi 6. Ünite Sorularla Öğrenelim

What is the main reason for the increase in international investments and economic integrations in the 21st century?

International trade. 

What are the areas of life affected by globalization?

Globalization has affected the culture, the social, and economic structure of nearly all of the societies.

What does GATT stand for?

The General Agreement on Tariffs and Trade

When was GATT signed?

In 1947.

What does GATT aim to achieve?

To regulate and reduce tariffs on traded goods. 

What did many developing countires do in the late 1980s and during 1990s to liberalize their economies?

They relaxed restrictions on foreign ownership of their assets and took other measures to develop their capital markets, often in tandem with macroeconomic and trade reforms (Bekaert. and Hodrick, 2011).

How can the types of financial flows be classified?

The types of international financial flows can be classified according to the economic activity according to the structure of the balance of payments, the economic relationship between the non-residents, the terms of financial transactions, and the form of ownership of the sources of financial flows. 

What actors carry out the movement of financial flows?

Movement of financial flows (in the form of money, and various financial and credit instruments) carried out by banks, specialized financial and credit institutions, and stock exchanges.

What are the two main types of transactions between countries for international settlements?

Commercial payments and non-commercial payments. 

What can convertibility in international trade be defined as?

The normal functioning of international settlements requires free exchange of national currency against the currency of other countries. This is named as convertibility which can be defined as the state of or the ease with which currency may be exchanged for foreign currency.

What does SWIFT stand for?

The Society of Worldwide Interbank Financial Telecommunications.

What is the system used for USD transfers after a transaction is electronically confirmed over SWIFT?

CHIPS.

What is the system used for EURO transfers after a transaction is confirmed over SWIFT?

TARGET

What are the four categories of multinational companies that exist?

A decentralized corporation, a global centralized corporation, a global company and a transnational enterprise. 

What is the definition of a transnational company?

It has its home in at least two nations and spreads out its operations in many countries for a high level of local response.

What is the definition of multinational enterprise?

It controls and manages plants in at least two countries.

What are possible disadvantages of multinational corporations for countries where they invest?

The size of the operations may result in monopoly power, downfall of smaller and local businesses, detrimental environmental effects, depletion of local natural resources and evasion of ethical standards. 

What is the definition for a horizontally integrated multinational corporation?

Horizontally integrated multinational corporation involves the production of essentially the same product in different countries.

What is the definition for vertically integrated multinational corporation?

Vertically integrated multinational corporation commences various stages of production in different countries.

What is the definition for a conglomerate multinational corporation?

Conglomerate multinational corporation produces a different range of products in different countries.