The Trend Towards Opening Up Foreign Markets to International Trade

question 87

Multiple Choice

The trend towards opening up foreign markets to international trade and investment is knows as:

• A) globalization
• B) offshoring
• C) outsourcing
• D) international economic diversity

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Definitions:

Term Structure

The relationship between interest rates or bond yields and different terms to maturity, typically depicted in a yield curve.

Liquidity Premium

The portion of a nominal interest rate or bond yield that represents compensation for lack of liquidity.

Inflation

An indicator of how quickly the overall price level for goods and services increases, leading to a decrease in buying power.

Inflation Premium

The additional yield that investors demand on securities to compensate for the loss of purchasing power due to inflation.