10 Questions
Which one of the following industries is considered a Multidomestic industry?
Food
What is the term used for Japanese Yen held in banks outside Japan?
EuroYen
What is it called when Sony sells Yen-denominated bonds in the United States?
Yen Bond
What happens if the value of Euro depreciates and becomes 1$=2Euro?
US companies become less competitive
How are exchange rates determined?
Based on supply and demand of currency
Which one of the following industries is considered a Global industry?
Cars
What is it called when a Japanese company, like Sony, sells Dollar-denominated bonds in the United States?
Foreign Bond
What is the term used for Japanese Yen held in banks outside Japan?
EuroYen
What is the advantage of visiting Europe when the value of Euro depreciates and becomes 1$=2Euro?
Europe becomes cheaper to visit
Which index indicates the inequality of income?
Gini Index
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.
Test your knowledge on global and multidomestic industries, purchasing behavior, and the Japanese Yen. Find out if you can identify which industries fall under each category and what the Japanese Yen is called when held in banks outside of Japan. Get ready to ace your exam with this quiz!
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