Exam 3 Review Sheet
International Business

Know and understand chapters 9, 10, 12, and 13 
Know and understand chapter PowerPoints as well as those on entry modes and importing/exporting 
Be familiar with your classmates presentations 
Know the content of your practice exam
Who trades currencies and why? 
Black market
Reserves
Hard, soft, fixed, pegged, floating, managed, convertible, and safe haven currencies
Bid price, ask price, and spread
PPP
IMF
Currency futures, options, swaps, and credit hedging
Hedging, arbitrage and speculating
Spot rate, cross rate, forward rate, and forward contract
Predicting currency values (consider account balances, inflation, hyperinflation, interest rates, economic growth, economic and political stability, debt, reserves, trends, investor psychology/behavioral factors)
Why lead (pay early) or lag (pay as late as possible) payments
Euro versus eurocurrency
Equity, stock, debt, bond (domestic, foreign, eurobond)
Currency exchange controls or restrictions and reasons given for them
Nominal and real interest rates
Impact of currency value changes on importers, exporters, and consumers
Currency appreciation, depreciation, devaluation, revaluation
Currency trading at a premium and discount
Countertrade and barter
Payment methods (cash in advance, letter of credit, draft, open account)
Foreign exchange rates, markets, and risk
Offshore banks and banking (few regulations and restrictions plus better rates)
Why "Go" International?
	Markets
	Resources
	Diversification
	Strategy
Useful Data for Selecting a Foreign Location
	Demographics
	Economics
	Laws
	Culture 
	Technology
	Literacy and education
	Infrastructure and logistics
	Rates of change in all of the above
Global Market Research
	Secondary data
	Internet
	International organizations 
	Government agencies
	Industry and trade associations
	Market research companies
	Primary data
Data Challenges
	Availability (could be restricted or non-existent)
	Cost
	Language barriers
	Comparability (cultural differences)
	Reliability
	Biased
	Missing or wrong information
	Outdated
Entry Modes (not necessarily mutually exclusive terms):
Define, discuss, provide examples, identify advantages and disadvantages of each entry mode, and when one might be more appropriate than others. 
  Exporting
  Turnkey projects
  Licensing
  Franchising
  Joint ventures (JV)
  Wholly owned subsidiaries
  Strategic alliances
  Management contract
  Greenfield
  Acquisition
Identify important partner attributes & reasons to collaborate
Challenges of collaboration
	Create a competitor
	Antitrust Violations
	Loss of control
	Processes or quality
	Technology
Causes ofconflict between JV partners 
	Culture
	Relative partner contributions
	Purpose of the JV
Geography - Canada USA Mexico Brazil Argentina Chile Colombia Peru Venezuela Panama Cuba Dominican Republic Australia, China, Indonesia, Japan, Malaysia, New Zealand, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, Vietnam, Algeria, Egypt, Ethiopia, Iraq, Iran, Israel, Kenya, Morocco, Nigeria, South Africa, Saudi Arabia, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Spain, Sweden, Turkey, United Kingdom