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    GATT is the precursor of WTO and refers to the General Agreement on Tariffs and Trade. World War II precipitated the internationalization of financial markets by reducing capital immobility. Investing in foreign markets is motivated by economic conditions, exchange rate expectations, and international diversification, but not high foreign interest rates. Providing credit in foreign markets is motivated by low foreign interest rates, exchange rate expectations, but not international diversification or high foreign interest rates. Borrowing in foreign markets is motivated by economic conditions, exchange rate expectations, and high foreign interest rates, but not international diversification.

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    GATT is the precursor of WTO and refers to the General Agreement on Tariffs and Trade. World War II precipitated the internationalization of financial markets by reducing capital immobility. Investing in foreign markets is motivated by economic conditions, exchange rate expectations, and international diversification, but not high foreign interest rates. Providing credit in foreign markets is motivated by low foreign interest rates, exchange rate expectations, but not international diversification or high foreign interest rates. Borrowing in foreign markets is motivated by economic conditions, exchange rate expectations, and high foreign interest rates, but not international diversification.

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    18 views1 page

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    Uploaded by

    Junho Cha
    GATT is the precursor of WTO and refers to the General Agreement on Tariffs and Trade. World War II precipitated the internationalization of financial markets by reducing capital immobility. Investing in foreign markets is motivated by economic conditions, exchange rate expectations, and international diversification, but not high foreign interest rates. Providing credit in foreign markets is motivated by low foreign interest rates, exchange rate expectations, but not international diversification or high foreign interest rates. Borrowing in foreign markets is motivated by economic conditions, exchange rate expectations, and high foreign interest rates, but not international diversification.

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    © All Rights Reserved
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    1. GATT is the precursor of WTO.

    GATT means
    a. General Agreement on Tariffs and Trade
    b. Global Agreement on Tariffs and Trade
    c. General Agreement on Trade and Tariffs
    d. Global Agreement on Trade and Tariffs

    2. What precipitated the internationalization of financial markets?


    a. World War
    b. World War II
    c. Existence of imperfect market
    d. Capital immobility

    3. Which of the following is not a motive for investing in the Foreign Market?
    a. Economic Conditions
    b. Exchange rate expectations
    c. International Diversification
    d. High foreign interest rates

    4. Which of the following is not a motive for providing Credit in Foreign Market?
    a. Low foreign interest rate
    b. Exchange rate expectations
    C. International Diversification
    d. High foreign interest rates

    5. Which of the following is a motive for Borrowing in Foreign Markets?


    a. Economic Conditions
    b. Exchange rate expectations
    C. International Diversification
    d. High foreign interest rates

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