Podcast
Questions and Answers
What is the main purpose of the foreign exchange market?
What is the main purpose of the foreign exchange market?
What is the purpose of the foreign exchange market?
What is the purpose of the foreign exchange market?
The foreign exchange market facilitates currency exchange between buyers and sellers.
What is the difference between direct investment and portfolio investment?
What is the difference between direct investment and portfolio investment?
Direct investment involves establishing or buying a company with a management role, while portfolio investment involves short-term movement of funds for loans or small share holdings.
What is the difference between direct investment and portfolio investment?
What is the difference between direct investment and portfolio investment?
Signup and view all the answers
How do transnational corporations impact international competitiveness?
How do transnational corporations impact international competitiveness?
Signup and view all the answers
How do transnational corporations impact international competitiveness?
How do transnational corporations impact international competitiveness?
Signup and view all the answers
What are the factors that impact international financial flows?
What are the factors that impact international financial flows?
Signup and view all the answers
What are the three factors that impact international financial flows?
What are the three factors that impact international financial flows?
Signup and view all the answers
What are the positive effects of de-regulation of financial flows?
What are the positive effects of de-regulation of financial flows?
Signup and view all the answers
What are the positive effects of de-regulation of financial flows?
What are the positive effects of de-regulation of financial flows?
Signup and view all the answers
What are the negative effects of de-regulation of financial flows?
What are the negative effects of de-regulation of financial flows?
Signup and view all the answers
What are the negative effects of de-regulation of financial flows?
What are the negative effects of de-regulation of financial flows?
Signup and view all the answers
What are the initiatives to promote responsible use of financial flows?
What are the initiatives to promote responsible use of financial flows?
Signup and view all the answers
What are initiatives to promote responsible use of financial flows?
What are initiatives to promote responsible use of financial flows?
Signup and view all the answers
What is the difference between direct investment and portfolio investment?
What is the difference between direct investment and portfolio investment?
Signup and view all the answers
How does direct investment differ from portfolio investment in terms of time horizon?
How does direct investment differ from portfolio investment in terms of time horizon?
Signup and view all the answers
What are the factors that impact international financial flows?
What are the factors that impact international financial flows?
Signup and view all the answers
What is the impact of transnational corporations on currency values?
What is the impact of transnational corporations on currency values?
Signup and view all the answers
What is the impact of globalization on international financial flows?
What is the impact of globalization on international financial flows?
Signup and view all the answers
What is the potential downside of excessive speculation in financial markets?
What is the potential downside of excessive speculation in financial markets?
Signup and view all the answers
What is the role of financial literacy in promoting responsible use of financial flows?
What is the role of financial literacy in promoting responsible use of financial flows?
Signup and view all the answers
Study Notes
- The foreign exchange market facilitates currency exchange between buyers and sellers.
- Direct investment involves establishing or buying a company with a management role, while portfolio investment involves short-term movement of funds for loans or small share holdings.
- Transnational corporations impact international competitiveness by relocating manufacturing to low-labor cost countries and affecting currency values.
- Deregulation of financial markets, growth of transnational corporations, and globalization impact international financial flows.
- De-regulation of financial flows can have both positive and negative effects.
- Positive effects of de-regulation include more investment opportunities, faster and more efficient capital flows, and more competitive markets.
- Negative effects of de-regulation include increased risk of financial instability, vulnerability to financial crises, and excessive speculation.
- Initiatives to promote responsible use of financial flows can include increasing financial literacy and education, increasing transparency, and promoting greater oversight and regulation.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on international finance and investment with this informative quiz! From the foreign exchange market to transnational corporations and de-regulation, this quiz covers a range of topics related to global financial flows. Learn about the positive and negative effects of de-regulation, and explore initiatives to promote responsible use of financial flows. This quiz will challenge your understanding of international competitiveness and the impact of globalization on financial markets. Get ready to boost your financial knowledge with this engaging quiz!