Global Industries

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Questions and Answers

Which one of the following industries is considered a Multidomestic industry?

  • Fashion
  • Retailing
  • Food (correct)
  • Cars

What is the term used for Japanese Yen held in banks outside Japan?

  • ForeignYen
  • EuroYen (correct)
  • YenBond
  • DollarYen

What is it called when Sony sells Yen-denominated bonds in the United States?

  • Euro Bond
  • Yen Bond (correct)
  • Foreign Bond
  • Dollar Bond

What happens if the value of Euro depreciates and becomes 1$=2Euro?

<p>US companies become less competitive (B)</p> Signup and view all the answers

How are exchange rates determined?

<p>Based on supply and demand of currency (B)</p> Signup and view all the answers

Which one of the following industries is considered a Global industry?

<p>Cars (C)</p> Signup and view all the answers

What is it called when a Japanese company, like Sony, sells Dollar-denominated bonds in the United States?

<p>Foreign Bond (B)</p> Signup and view all the answers

What is the term used for Japanese Yen held in banks outside Japan?

<p>EuroYen (B)</p> Signup and view all the answers

What is the advantage of visiting Europe when the value of Euro depreciates and becomes 1$=2Euro?

<p>Europe becomes cheaper to visit (B)</p> Signup and view all the answers

Which index indicates the inequality of income?

<p>Gini Index (B)</p> Signup and view all the answers

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Study Notes

International Finance

  • Automotive industry is an example of a Multidomestic industry, meaning it is tailored to local markets.

International Investment

  • Euroyen refers to Japanese Yen held in banks outside Japan.

Bond Markets

  • When Sony sells Yen-denominated bonds in the United States, it is called a Yenbond or Samurai bond.
  • When a Japanese company, like Sony, sells Dollar-denominated bonds in the United States, it is called a Yankee bond.

Exchange Rates

  • If the value of Euro depreciates and becomes 1$=2Euro, it means the Euro has become cheaper relative to the US dollar.
  • Exchange rates are determined by the foreign exchange market, where the supply and demand of currencies interact.

Global Industries

  • The technology industry is an example of a Global industry, meaning it is standardized worldwide.

Travel and Currency

  • If the value of Euro depreciates and becomes 1$=2Euro, it becomes cheaper for tourists to visit Europe.

Income Inequality

  • The Gini index is a measure of the inequality of income.

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