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Match to correct term to the corresponding definition. Question 5 options: 1234567891011121314151617181920 The exchange rate at which a foreign exchange dealer will convert one currency

Match to correct term to the corresponding definition.

Question 5 options:

1234567891011121314151617181920

The exchange rate at which a foreign exchange dealer will convert one currency into another on a particular day.

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Advantages accruing to the first to enter a market.

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The absence of barriers to the free flow of goods and services between countries.

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Designed to protect domestic producers from unfair foreign competition.

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Movement of traders like a herd, all in the same direction and at the same time, in response to each other's perceived actions.

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Allowing another firm the right to produce a product, use a production process, or use its brand name or trade mark in return for a royalty fee.

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A country produces products more efficiently than any other country.

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The exchange rate governing a forward exchange transaction at some specific date in the future.

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Occurs when low-cost foreign suppliers outside a free trade area are replaced by higher-cost suppliers within a free trade area.

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Government financial assistance to a domestic producer.

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A group of countries committed to removing barriers of trade between each other and pursuing a common external trade policy.

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A market in which prices do not reflect all available information.

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In competitive markets free of transportation costs and barriers of trade, identical products sold in different countries must sell for the same price when the price is expressed in the same currency.

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Region in which similarities in economic activity make single currency and exchange rate feasible instruments of macroeconomic policy.

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The amount of foreign direct investment undertaken over a given period of time (normally one year).

1.

First-mover advantages

2.

Free Trade

3.

Absolute advantage

4.

Anti-dumping policies

5.

Subsidy

6.

Licensing

7.

Flow of FDI

8.

Economic Union

9.

Trade diversion

10.

Optimal currency area

11.

Spot exchange rate

12.

Law of one price

13.

Inefficient market

14.

Forward exchange rate

15.

Bandwagon effect

16.

Franchising

17.

New trade theory

18.

Comparative advantage

19.

Dumping

20.

Stock of FDI

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