Question

Global Business and Accounting (10%) overal terms and statements with missing expressions. Fill in the blanks with the appropriate term. g Standards Multiply Divide Market economy Foreign trade zones eak (relative to trong (relative to currency) Hedging ranslating lanned nomy Foreign Corrupt Practices Act International licensing the foreign currency by the dollar prohibits companies engaged in global activities from bribing officials of foreign (1) To convert a foreign currency to an equivalent dollar amount the foreign exchange rate. (2) To convert a dollar amount into an equivalent amount of foreign currency amount by the exchange rate. (3) Thep countries (4) Goods imported into are duty free. minimizes or eliminates the risk of loss associated with foreign currency fluctuations (6) In aownership of land and the means of production are privately held. (7) In athe government allocates resources and determines output among various segments of the economy (8) The process of restating an amount of foreign currency in terms of the equivalent number of the foreign currency. ) A currency is described aswhen its exchange rate is rising relative to other rrencies. A currency is described aswhen its exchange rate is falling in relation to other encies.

Answer 1

(1) To convert a foreign exchange currency to an equivalent dollar amount divide the foreign currency by the foreign exchange rate.

(2) To convert a dollar amount into an equivalent amount of foreign currency multiply the dollar amount by the exchange rate.

(3) The Foreign Corrupt Practices Act prohibits companies engaged in global activities from bribing officials of foreign countries.

(4) Goods imported into Foreign trade zones are duty free.

(5) Hedging minimizes or eliminates the risk of loss associated with foreign currency fluctuations.

(6) In a market economy ownership of land and the means of production are privately held.

(7) In a planned economy the government allocates resources and determines output among various segments of the economy.

(8) The process of restating an amount of foreign currency in terms of the equivalent number of dollars is called translating the foreign currency.

(9) A currency is described as strong when its exchange rate is rising relative to other currencies.

(10) A currency is described as weak when its exchange rate is falling in relation to other currencies.