U5
1.Four criteria for making investment decisions income growthsafetyliquidity
2.Structure of Financial Markets Primary MarketSecondary Market Organized Securities Exchanges
Over-the-Counter Markets
3.The Investment Portfolio
A major concern is diversification.One way to diversify is by investing in securities from
unrelated industriesAnother way is by investing in securities from other
．
countrieswith higher returns from faster，which can balance lower returns in one country
—growing areas． Unit6
1.what are the relationship between the world and the volume of international tradeSlower world economic output slows the volume of
？
international trade2.why international trade take place?，and higher output spurs greater trade.（
trade?Why it is costly for a country to engage in international Competition from abroad ）
Aet movement
Exchange rate fluctuation
Risks (Political, economic, …)3.please illustrate the economic benefits that international
trade brings to people.to engage in international trade?（Why it is beneficial for a country Opens doors to new entrepreneurial opportunity ）
Provides a greater choice of goods andAn important engine for job creation 4.how does Ricardo
services differ from the theory of absolute advantage?
’s theory of comparative advantage A person has an absolute advantage over another if that person
A person has a comparative advantage over another if that personthan the other person’5.why certain nations specialize in producing products or ’s opportunity cost（比较机会成本） commodities?
6.why were Leontief paradoxical?
‘s empirical results considered to be Factor proportion theory considers a countryfactors to be homogeneous 7.will you name some international busine methods? –particularly labor.
’s production What are their main advantages?
International trade (a relatively conservative approach to penetrate markets, or to obtain supplies at a low cost.minimal risk), licensing(Helps the home firm since it does not have to set up
a complete production and distribution network.), franchising ,
joint ventures(Can improve the image, risks.Acce to important local information without the costshare costs and of buying a company), acquisitions of existing operation, establishing new foreign
subsidiaries.
8.How did countries implement mercantilism? It aerts that it is in a country’s best
interest to maintain a trade surplus, to export more than it imports.
It advocates government intervention to
achieve a surplus in the balance of trade.
Tariffs It acquired le-developed territories to
Quotas
serve as sources of inexpensive raw
materials and as market for higher—
finished goods
priced 9.Factor proportions can be impacted by
1.2.3.trade barriershuman resource natural resources
10.Licensing costs much leer in terms of the initial investment and ongoing charges.
A franchising busine may require you to pay royalty every time a profit is made, a licensing opportunity does not demand such an expense.
11.Joint Ventures Can improve the image,
and risks
share costs
Acce to important local information
without the cost of buying a company
Need to share control with the local
12.Acquisitions of Existing Operations partners
full control over their foreign businees
and to quickly obtain a large portion offoreign market share
investment and operation risks partial international acquisitions are13.Establishing New Foreign Subsidiaries safer than full international acquisitions
Operations can be adjusted exactly to
satisfy the firm’s needs
Le investment amount reap the rewards after a comparatively
long time
Unit7
1.what are the arguments of the governments to intervene international trade?
Protecting jobs, preserving national security, responding to other nationInfant industry argument, protection of national identity.s’ unfair trade practice.
2.what are the government policies that may enhance trade?
Subsidies 3.what are the major methods used by the governments to,exporting financing , foreign trade zones.restrict international trade?
Tariff content requirements, currency controls.
non-tariff barriers such as quotas, embargoes, local 4.what are purpose of the governments to levy tariffs upon goods imported or exported?
Tariffs are a way of protecting domestic producers of a product.
Tariffs are a source of government revenue.
5.what round of negotiation?
achievements did GATT make in the Uruguay Further reduce barriers to merchandise trade, the negotiations modified the original GATT treaty in several important ways.Agreements on services, intellectual property , and agricultural subsidies were achieved.6.what are the main goals of To help the free flow of trade , to help negotiate furtherWTO?
opening of markets, and to settle trade disputes between its members.
7.Methods of Promoting Trade
Subsidies
Export FinancingForeign Trade Zones Unit 8
1.What information can we get from a country\'s balance of payments?
imports, tourist expenditures, purchases and sales of shippingThese transactions include merchandise exports and
and insurance services, interest and dividends received or paid abroad, purchases and sales of financial or real aets aboard, and so on.
2.In what circumstances does a country have a balance of payments deficit,and balance of payments surplus?
a trade deficit.
If the debits exceed the credits,then the country is runninga trade surplus.
If the credits exceed the debits,then the country is running 3.How can a large balance-of-payments surplus contribute to the country\'s inflation rate?
4.What are factors that may affect the balance of trade?international trade imbalances; it is poible a country\'sIt is poible to a floating exchange rate could correct any currency will remain stable or appreciate even when it has a balance of trade deficit.
5.Is weak home currency a perfect solution to its balance of trade?
foreign competition in response to exchange rate
No.Because: 1 the poibility of a revised pricing policy by movements,2 currency of some other countries may have also weakened,3 international trade transactions are prearranged and cannot be immediately adjusted.6.
Why a Weak Home Currency Is Not a Perfect Solution?
The poibility of a revised pricing policy
by foreign competition in response to exchange rate movements．
Currencies of some other countries may
have also weakened.
International trade transactions are
prearranged and cannot be immediately adjusted．
7.A credit records a transaction reducing aets or increasing liabilities.
贷方记录资产的减少，负债的增加。
A credit arises from the sale of goods, or reserve aets and reflects inflows of funds.
A debit records a transaction increasing aets or reducing liabilities.
A debit arises from the purchase of goods, or reserve aets and reflects outflows of funds.
8.Correcting a Balance of Trade Deficit
A deficit in a country’s balance of wade suggests that the country is spending a greater amount of funds on foreign products than it is receiving from exports to foreign countries
U9.
Under a floating rate system
Appreciation Depreciation
Under a fixed rate system
Revaluation
Devaluation
2.The importer can reduce the exchange rate risk in many
ways:
The importer might choose to buy the
foreign currency on the transaction day.
The importer simply wait until the funds
are needed and then purchase them in the spot marketThe importer buy the foreign currency
．
forward for delivery on the Value Day．
3.The Monetary Approach
• A loose monetary policy : high domestic
inflation and an depreciating currency
• A tight monetary policy : low domestic
inflation and an appreciating currency
u10.
1.It is important to identify the major problems that exporters often face: ．
develop a master international marketing plan before Failure to obtain qualified export counseling and to starting an export busine
． ．overcome the initial difficulties and financial
Insufficient commitment by top management to requirements of exportingselecting overseas agents or distributors．3．Insufficient care in
．market booms ．Neglecting the export busine when the domestic
．basis with their domestic counterparts.
．Failure to treat international distributors on an equalcountries．Unwillingne to modify products to meet other
’regulations or cultural preferencesin locally understood languages．Failure to print service，sales
．， and warranty meagescompany or other marketing intermediary when the．Failure to consider using of all export management company does not have the personnel to handle specialized export functions.
2.To establish a succeful export strategymust，management ： Ae the companyexamining its opportunities and resources’s export potential by
． Obtain expert counseling on exporting．
3.E-commerceSelect a market or marketsFormulate and implement an export strategy． ． is easy to start
it provides faster and cheaper delivery of ，
informationit provides quick feedback on new products，
it helps to improve customer service， it is available to a global audience， it helps establish electronic data interchange ，
(EDI) with both suppliers and customers．
3..There are two basic types of imports:
(1)those that provide industrial and consumer goods and services to individuals and companies that are not related to the foreign experter,and (2)those that provide intermidiate goods and services to companies that are part of the firm’s global supply chain.
4..those documents are of two different types :
(1)those that determine whether customs will release the shipment ,and (2)those that contain information for duty aement and statistical purposes.
