Business Management Chapter 3 Flashcards
(47 cards)
Establishing facilities with developing economic regions enables companies to
- Operate closer to emerging markets
- Create a stronger affiliation to their brands
- React quickly to market opportunities and trends
True or false: Establishing facilities within developing economic regions allows companies to strengthen their brand by developing stronger affiliations.
True
Which of the following is the primary concern of the world bank
Developing infrastructure in less-developed countries
Which of the following are commitments necessary from a government adhering to the fundamentals of fair trade
- A commitment to environmental standards
- Enforcing intellectual and patent property rights of companies
- Adhering to generally accepted labour practices
Canada experienced high levels of national debt during
the 1980s
The total value of a nation’s exports compared to its imports measured over a particular period is the definition of:
The balance of trade
When the value of a country’s exports exceeds that of its imports, the country is said to have a
Trade Surplus
When the value of a country’s imports is more than its exports, the country is said to have
a trade deficit
Since 1978, economic growth in the People’s Republic of China has grown approximately ____ annually
10%
The current account is a measure of
A countries net:
- Transfer payments to and from the rest of the world
- Earnings from interest and investments
- A country’s net trade in goods and services
Typical currencies held for the purpose of foreign exchange reserves include
- The Euro
- The U.S. dollar
- The Japanese Yan
The World Bank:
- Its primary function is to develop infrastructure in less-developed countries
- It provides both financial and technical assistance
Restrained __ during the mid-1990s brought Canada’s debt position back under control
Fiscal Spending
A trade __, also called a favourable balance of trade, occurs when the value of a country’s exports exceeds that of its imports.
Surplus
A trade ___, also called an unfavourable balance of trade, occurs when the value of a country’s exports is less than its imports
Deficit
Which country is particularly interesting to Canada because of the potential associated with their size and economic transformation?
China
Foreign exchange ____ are assets held by central banks which are used to back the country’s liabilities
reserves
A stable company that is able to meet its ongoing debt obligations and fund future growth opportunities is said to be ___
Solvent
_____ is when a company contracts out a portion of its business system (for example, advertising or accounting) to another firm for the purpose of reducing costs, improving efficiency, or developing a competitive advantage
Outsourcing
Out of France, Canada, India and Germany, which is the most likely to need financial support from the World Bank to get economic activity off of the ground
India
The core elements of an open economy include:
- The law of supply and demand
- Encouragement of entrepreneurship and wealth creation
- Support of private ownership
Trade ____ is the use of government regulations to protect or improve domestic industries limiting the import of goods and services through the use of import tariffs and quotas
Protectionism
Economies of ___ refers to the reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies
Scale
If a firm has the ability to quickly convert existing assets into cash it is said to be
liquid
