KEY TERMS Define each of the following terms:

a. Multinational, or global, corporation

b. Vertically integrated investment

c. International monetary system

d. Exchange rate

e. Freely floating regime; managed-float regime

f. Currency board arrangement g. Fixed-peg arrangement h. Cross rate i. American terms; European terms j. Direct quotation; indirect quotation k. Spot rate; forward exchange rate l. Discount on forward rate; premium on forward rate m. Interest rate parity; purchasing power parity n. Eurocredits; eurodollar o. Eurobond; foreign bond p. American Depository Receipts (ADRs); repatriation of earnings q. Country risk; exchange rate risk; political risk; business climate.AppendixLO1