1) Mention 2 differences between internal trade and internal trade?
International business benefits both the nations and firms. Domestic business has lesser benefits when compared to the former.
Domestic trade is the exchange of goods, services, or both within the confines of a national territory. They are always aimed at a single market. It always deal with only one set of competitive, economic
Trade that includes exchange of capital, goods, and services across nations is called International Trade. It is always a major source of economic revenue for any nation and in absence of the same nations
Internal trade mean within ones country. International trade mean All over the world. There are much to gain by moving international with ones products as the market will be a lot greater.
2) What is tariff?
A tariff is a tax placed on imported goods. Each country has separate tariff regulations. The five main types of tariffs include revenue, ad valorem, specific, prohibitive and protective. A revenue tariff increases government funds. For example, countries that do not grow bananas may create a tariff on importing bananas. The government would then make money from businesses that import bananas.
3) Mention the merits of free trade?
Free trade is the only type of truly fair trade because it offers consumers the most choices and the best opportunities to improve their standard of living. It fosters competition, spurring companies to innovate and develop better products and to bring more of their goods and services to market, keeping prices low and quality high in order to retain or increase their market share.
4) What is soft loan window?
Soft loans are made by the special lending facility of a multinational development bank or the International Development Association, an affiliate of the World Bank. Typically, soft loans have extended grace periods in which only interest or service charges are due, longer (up to 50 years) amortization schedules, and lower interest rates than conventional bank loans. Access to the soft loan window is limited to developing countries with low per capita incomes, and developing countries experiencing balance of payment problems.
A loan with a below-market rate of interest.
5) What is non monetary gold?
Nonmonetary gold covers all gold other than monetary gold. Monetary gold is owned by monetary authorities and held as a reserve asset. Nonmonetary gold can be in the form of bullion
6) What is bill of exchange?
Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation.
7) What is bull and bear in share market?
A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy. Bear markets are the opposite. A bear market is typified by falling stock prices, bad economic news, and low investor confidence in the economy.
8) What is exchange rate?
Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another or for engaging in speculation or trading in the foreign exchange market. There are a wide variety of factors which influence the exchange rate, such as interest rates, inflation, and the state of politics and the economy in each country. Also called rate of exchange or foreign exchange rate or currency exchange rate.
9) What is inflation?
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
10) What is Hedging Facility?
There are two options under the hedging facility, which is being handled by the Development Bank of the Philippines (DBP): 1) peso insurance and 2) forward.
It refers to an agreement to buy or sell the required foreign exchange at the rate agreed today on a future date, normally after 3 months.
