1) switch trading is the direct exchange of goods and/or services between parties
without a cash transaction.
2) countries with fragmented retail systems tend to have long channels of distribution.
3) adverse exchange rate movements can transform otherwise profitable investments
into unprofitable investments.
4) organizational structure refers to the totality of a firm’s organization.
5) firms entering a market via a wholly owned subsidiary must bear all the costs and
risks associated with the venture.
6) by concentrating power and authority in one individual or a management team,
centralization can give top-level managers the means to bring about needed major
organizational changes.
7) under a strict currency board system, interest rates rise until investors eventually find
holding the local currency attractive again.
8) systematic increase in sales that have been observed to occur over the life of the
product are referred to as the experience curve.
9) moving down the experience curve allows a firm to reduce its cost of creating value
and increase its profitability.
10) according to a less extreme version of the ppp theory, given relatively efficient
markets, the price of a “basket of goods” should be roughly equivalent in each country.
11) when lower cost external suppliers are replaced by higher cost suppliers within a
free trade area, there is trade creation.