Multi-point Strategy: Emphasizing the need to be responsive to the unique conditions prevailing in different national markets.

Trans-national strategy: Plan to exploit experience-based cost and local economies, transfer core competencies with the firm, and pay attention to local responsiveness.

Multi-domestic strategy: Emphasizing the need to be responsive to the unique conditions prevailing in different national markets.

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

Economies of scale: Cost advantages associated with large scale production.

Global strategy: Strategy focusing on increasing profitability by reaping cost reductions from experience curve and location economies.

Floating Exchange Rates: A system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply…

Fixed Exchange Rates: A system under which the exchange rate for converting one currency to another is fixed.

Forward Exchange Rate: The exchange rates governing forward exchange transactions.

Spot Exchange Rate: The exchange rate at which a foreign exchange dealer will convert one currency into another that particular day.

Purchasing Power Parity (PPP): An adjustment in gross domestic product per capita to reflect differences in the cost of living.

Arbitrage: Arbitrage is the simultaneous buying and selling of foreign currencies with the intention of making profits from the difference between the exchange rate prevailing…

Swap Operations: A swap is defined as a financial transaction in which two counter parties agree to exchange streams or payments, or cash flows, over…

Options: An option is a contract giving the owner the right, but riot the obligation, to buy or sell a given quantity of an asset…

Future Contract: A future contract has been defined on "the simultaneous right and obligation to buy or sell a standard quantity of a specific financial…