MIDTERMS

• AFTA - ASEAN Free Trade Area
• APEC - Asia Pacific economic cooperation
• NAFTA - North American Free trade agreement
• CAFTA-DR ( Central American dominican republic free trade agreement )
• GATT - General agreement on Tariffs and Trade
• Types of FDI

  1. Horizontal FDI
  2. Vertical FDI
  3. Conglomerate FDI
• Regional integration - process by which two or more nation- states agree to cooperate together to achieve stability and wealth
• TYPES OF REGIONAL TRADING AGREEMENTS

  1. Preferential trade area
  2. Free trade area
  3. Customs Union
  4. Common market
  5. Economic union
  6. Full integration
• Benefits of RTA

  1. Boosts economic growth
  2. Volume of trade
  3. Quality and variety of goods
• Foreign exchange market or ( forex, FX or currencies market ) - is an OTC global marketplace that determine the exchange rate for currencies
• Financial market - market place where security/ financial assets trading occurd
• OECD - Organisation for economic co-operation and development
• Free-float - relative value is determined by supply and demand relationship
• Fixee float - country's governing body sets it's currency's relative value
• The most liquid pairs:

  1. USD/EUR
  2. USD/JPY
  3. USD/GBP
• Switzerland

  • Currency - swiss franc
  • Code - CHF
  • currency code full form - confoederatio helvetica franc
• Stock market - most ubiquitous /investors buy and sell shared/ equity
• Money market - highly liquid short- term maturities (less than one year )
• Bond market - lender and borrower relationship. It is also called debt credit or fixed-income market
• Derivatives - trades in future like bonds commodities, currencies, interest rates, market indexes and stocks
• Personal ethics - generally accepted principles of right or wrong leading the conduct of individual
• Decision making process - decisions are based on economic logic
• Ethical dilemma - situation with uncertainty about what is right or wrong
• Code of ethics - written document that states what is acceptable and unacceptable behavior of employees
• Stakeholders - person or organization that is affected by organizations actions