Glossary

dollarize:
a country that is not the United States uses the U.S. dollar as its currency
exchange rate: 
the price of one currency expressed in terms of units of another currency
foreign direct investment (FDI):
purchasing more than ten percent of a firm or starting a new enterprise in another country
foreign exchange market:
the market in which people use one currency to buy another currency
hedge:
using a financial transaction as protection against risk
portfolio investment:
an investment in another country that is purely financial and does not involve any management responsibility