Foreign Direct Investment.
Topics Study List for Exam # 2
1 Foreign Direct Investment (FDI)
– what is it
– how does it compare to Foreign Portfolio Investment (FPI)
– advantages and disadvantages of FDI for home and host countries
2 Regional Economic Integration
– what is it
– the 5 types of REI
– advantages/disadvantages
– the main trading agreement that impacts Canada
– NAFTA’s impact on the global trading system
3 Foreign Exchange
– impact of changes in exchange rates
– protection against currency shifts
– what affects the exchange rate
– general role/purpose of the foreign exchange market
– types of exchange rate systems
– countertrade (as it relates to foreign exchange issues)
4 General familiarity with the Nordstrom case