Institutional framework for international firms
15 important questions on Institutional framework for international firms
Pillars of global economic and financial governance:
- IMS
- international trade
- institutions to promote economic development
- institutions for global governance
A set of rules to govern international monetary transactions
Purchases and sales of international reserve assets
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All currencies are defined with respect to gold and convertible to cash
Monetary order in which currency's value was pegged against dollar gold measure of value
Free floating bank currencies are composed of fiat currencies
Government issued currency not backed by commodity
Exchange rate arrangements:
- Hard peg
- soft peg
- floating
The national currency is either fixed to gold, to a foreign currency or to a basket of currencies
Abandon national currency and use currency of another country as legal tender
Maintain stable value of the domestic currency against an anchor currency
Arrangement typical of advanced economies and large emerging markets where the exchange rate is determined by the market
Promoting international trade through eliminating trade barriers
Mechanisms and organisations for disputes:
- WTO
- ISCD
- Court of justice
- court of arbitration
Work for sustainable solutions that reduce poverty and build shared prosperity in developing countries
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