QUIZ 2

Flashcard maker : Lily Taylor
Theocracy
a political system in which a country’s religious leaders serve as its political leaders
Advantage of conducting business in totalitarian nations
international companies are less likely to face local political opposition to their activities
capitalism
philosophy that asserts that ownership of the means of production belongs in the hand of individuals and private businesses
confiscation
forced transfer of assets from a company to the government wihtout compensation
common law
the justice system decides cases by interpreting the law on the basis of tradition, precedent, and usage
Patent
a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention
trademarks
words or symbols that distinguish a product and its manufacturer from competitors
prodcut libability laws
protect people from defective products
strategic csr
layer of coporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage
carbon footprint
environmental impact of greenhouse gases that result from human activity
piracy
prada bags that are cheap and fake but bear the prada trademark logo
indivdualist culters tend to offer fewer incentives and rewards than collectivist cultures
false
important factor in forming successful business ventures in china
establishing a trusting relationship before proceeding with business
mixed economy
land factories and other economic resources equally split between private and government ownership
privatization
the selling of gov. owned economic resources to private operators
laissez faire economics
less government interference in commerce and greater individual economic freedom
monetary policies
control the currency supply and interest rates in a market economy
low tarrifs
characterize a nation with high degree of economic freedom
GDP
value of all goods and services produced by a domestic economy over a one year period
Purchasing Power Parity
relative ability of two countries currencies to buy the same basket of goods in those two countries
barter
the exchange of goods and services for other goods and services instead of money
shift of a country to a market based economy entails these four things
deregulation, privitazation, legal systems, and infastructure
arbitrage
instantaneous purchase and sale of a currency in different markets for profits
speculation
sequential purchase and sale of a currency for profit
exchange rate systems determined by the governments of countries
gold standard
floating system
pegged system
Law of one price
indentical product must have an identical price in all countries when expressed in the same currency
Purchasing power pairty
relative ability for two countries to buy the same basket of goods
Following factors help determine foreign exchange rates in a country
changes in growth in personal income
differences in inflation rates
changes in interest rates
balance of trade
fiscal condition of a country
spot rates
exchange rate for large sums of money that require delivery within two business days
currency hedging
practice of insuring agianst potential losses that reslut from adverse changes in exchange rates often using forward rates and contracts
how does a stronger domestic currency impact the domestic countries exports and imports
usd becomes stronger prices go up us exports decrease and the imports increase

Get instant access to
all materials

Become a Member