Business Unit 1 Exam

xicufaza's version from 2015-09-18 02:10


Question Answer
World Trade Organization settle disputessays that ALL parties involved must comply to maintain a good standing in the organization
Absolute advantagecountry can produce more of a product than another country with the same amount of resources
Types of marketsPure (many selling same, easy) Monopolistic (many selling different, easy) Oligopoly (handful selling same or different, hard) Monopoly (one dominates - gvmt run, hardest)
Contractioneconomic downturn, marked by rising unemployment and falling business production
Recessioneconomic downturn marked by a decrease in the GDP for 2 consecutive quarters
benefits of international tradeaccess to factors of production, reduced risk, inflow of new ideas from foreign markets
How to measure impact of international tradebalance of trade (difference of exports v. imports) balance of payments (total flow of money in and out) exchange rates (value of nation's currency compared to another's)
How to reach global markets? low to high riskExport-License-Franchise-Direct Investment
green marketingdeveloping and promoting environmentally sound products and practice to GAIN a competitive edge
demographicsmeasurable characteristics of a population - used to determine social environment
4 factors of productionHuman resources, Entrepreneurship, Capital, Natural Resources
Counter-tradingtrade of products rather than money (good if a another country is in debt)
debt-ceilingsunder fiscal policy, MAX amount Congress lets gvmt borrow or the gvmt borrows from another country which leads to higher taxes
Federal Reservedeals with interest rates and supply of money
M1currency/checking/traveler's checks
M2 M1/investments that are tied away
Tools to Expand/Contract Federal ReserveOpen market operations (buying/selling gvmt securities) discount rate (rate of interest, want it to be LOW) reserve equipment (min. amount of reserves for a bank)
Profitmoney business earns (revenue - expenses = profit)
Trading blocsgroup of countries that ELIMINATED or REDUCED tariffs (this allows for the free flow of goods among member nations)
Socialism v. Capitalismsocialism (gvmt owns and operates key enterprises that affect public, distribute wealth evenly) Capitalism (private ownership, economic freedom, fair competition, gvmt lets go)
Eras of BusinessIndustrial (technology) Entrepreneurship (second half of 1800's) Production (early 1900's, greater efficiency) Marketing (after WWII, develop brands) Relationship (long-term customer relationships)
Sources of revenue for gvmt.income tax, payroll taxes, corporate income tax
International Monetary Fund (IMF)188 member nations that promote international economic cooperation and stable growth, key player in trade movement
Gross Domestic Product (GDP)total value of all final good and services produced in a nation
Corruptionsolicitation of money for favorable treatment
legal ethical matrixlegal/unethical, legal/ethical, illegal/unethical, illegal/ethical
North American Trade Agreement (NAFTA)created free trade between US, Mexico, and Canada
foreign licensingrights to produce and market product OR use trademark and patent in a defined geographical area
Surbane Oxley Act2002, sets higher ethical standards for public corporations and accounting firms (limits conflict, requires financial officers or CEOs to certify financial statements
joint venturestwo or more companies join forces, share resources, risks, and profits. NOT MERGING COMPANIES!
monetary policyFederal Reserve decisions that shape the economy by influencing interest rates and supply of money (M1 and M2(
total flow of money in/outbalance of payments
M1 and M2 relating to monetary policyuse money supplies as a guide for the conduct of monetary policy
if less money is available with monetary policy, interest rates will be....?increased

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