INTERNATIONAL BUSINESS AND TRADE

(FIRST PRELIM QUIZ)

DEFINITATION OF TERMS:
WORLD TRADE ORGANIZATION (WTO)
MERCANTILISM
LAW OF ABSOLUTE ADVANTAGE (ADAM SMITH)
LAW OF ABSOLUTE DISADVANTAGE
LAW OF COMPARATIVE ADVANTAGE (DAVID RICARDO)
LAW OF COMPARATIVE DISADVANTAGE
HECKSCHER- OHLIN (OH) THEORY (FACTOR ENDOWMENT THEORY)
HECKSCHER- OHLIN- SAMUELSON (HOS) THEOREM (FACTOR PRICE EQUALIZATION
THEOREM)
THEOREM
TRADE POLICIES

 TYPES OF PROTECTION
TARIFF
QUOTA
GOVERNMENT REGULATION
EXCHANGE CONTROL

 ARGUMENT FOR THE IMPOSITION OF TARIFF PROTECTION

INFANT INDUSTRY ARGUMENT
HIGHER STANDARD LIVING ARGUMENT
INCREASE EMPLOYMENT ARGUMENT
SELF-SUFFICIENCY ARGUMENT

 EXCHANGE RATE
FOREIGN EXCHANGE MARKET
EXCHANGE RATE
FOREIGN EXCHANGE RATE
FOREIGN EXCHANGE ARBITRAGE
CURRENCY DEPRECIATION/APPRECIATION
CURRENCY DEVALUATION/ APPRAISAL
IMPORTANCE OF EXCHANGE RATE (4 SEVERAL REASONS)

 DETERMINATION OF EXCHANGE RATE

FLOATING EXCHANGE RATE
MANAGE FLOAT
DIRTY FLOAT
FIXED EXCHANGE RATE SYSTEM
PEG
ADJUSTABLE PEG SYSTEM
CRAWLING PEG SYSTEM
MARKET-DETERMINED EXCHANGE RATE
FLOATING RATE SYSTEM

POSITIVE/NEGATIVE EFECTS OF PESO APPRECIATION/DEPRECIATION

DEMAND AND SUPPLY IN THE FOREIGN EXCHANGE MARKET
COUNTRY’S EXPORTATION
BALANCE OF PAYMENT (BOP)

 TWO APPROACHES TO MEASURE PERFORMANCE OF COUNTRYS EXTERNAL TRAN.

CURRENT ACCOUNT BAL. + CAPITAL&FINANCIAL ACCNT BALANCE
CHANGE IN NET INTERNATIONAL RESERVES DUE TO TRANSACTION

NET UNCLASSIFIED OR ERRORS AND OMISSIONS