University of Washington, Geography 349, Review for third test

University of Washington
Geography 349 (Professor Harrington)
Review for third test, Spring 2004

DEFINITIONS

bill of lading (what is it and what are its three functions?)
C.I.F. (discussed in class, 5/25)
currency arbitrage
currency option
currency speculation
depreciation (or appreciation
devaluation (or revaluation)
F.O.B. (discussed in class, 5/25)
exchange rate
(outright) forward contract
forward rate
hard currency
interest arbitrage
letter of credit (It's a letter -- from whom to whom, saying what? What 4 parties are named on a confirmed letter of credit?)
pro forma invoice
spot rate

EXPLANATIONS

What are [at least three] influences on the change in a bilateral exchange rate, and how do the influences operate?

What are the components of an international marketing plan; in what ways do the components need to work together (e.g., be able to construct an example of a particular motivation for exporting, and how that might affect each of the components of a marketing plan)?

What are the three key variables in export payment? What options are within each variable? What determines which options an exporter will pursue? What are some of the ways an exporter can avoid exchange risk?

Define "assets" and "environment" and their role in establishing a firm's strategy in whether to engage in international business; what sort of export marketing strategy to pursue; and whether to make versus buy components (or design capability, or sales operations), where.

What are the pros and cons of "fast track authority"?


To help you think through the institutions that regulate international and domestic economic activities, try to complete the blanks in this linked table of international governance. From the Bello, Clement et al., and Stiglitz readings, identify an example of a national or international institution, whose geographic scale of operation does not match the geographic scale of its effects. What type of activity does the institution regulate? What are its key regulatory tools? Also ask yourelf whether the scope of entities or agents who are affected by the institution matches the scope of agents who govern the institution.

How did Will and MacPherson estimate the effects of NAFTA on the Western New York economy? What are some of the problems with this methodology? Why might the effects on output differ from the effects on employment?

What concerns did Barnes express about the effects of free trade on "staple" dependent regions?