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Thursday, April 28, 2011

IB Glossary

International strategy
Trying to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies.

Law of one price
In competitive markets free of transportation cost and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.

Lead strategy
Collecting foreign currency receivables early when a foreign currency is expected to depreciate, and paying foreign currency payables before they are due when a currency is expected to appreciate.

Local content requirement
A requirement that some specific fraction of a good be produced domestically.