Exam Relevant Flashcards
How many percent of world trade is through sea born and how many ships partake
90% and 50 000 ships
What is the set of rules a choice is based on?
Impulse purchase (heretics)
Rational purchase (analysis)
What is the difference between impulse and rational purchase? And some examples of which is used when.
Impulse purchase is often based on previous experience (buying something you have done in the past) while rational purchase often comes from more in depth analyses (investments and other bigger purchases. This process is a lot more time consuming).
What is IMO and its build up?
IMO is the International Maritime Organization
- Assambley as the highest organ
- Council- their job is to assure that the rules and decisions done by the assembly is done
- 5 main comities
- Sub comities
- Secretary
What is an resource?
Anything that can be used to produce something- material as well as immaterial.
Resources are also limited and the purpose of the market is to most effectively allocate limited resources.
What is the two options done in a trade?
A trade of (compromise)
A win- win (this situation can accrue in a deal that we fist was not obvious existed)
What is the benefit of trade?
- Humans obtain a far greater selection of choice than through bartering or self- reliance.
- Through specialization. Productivity increases and lower costs.
Why do we trade?
Some countries can offer a product or services that another can’t. For example coffee and tropical fruits. This is something Norway can’t produce but we have fish and other raw materials that we can offer to the world.
Mention different types of market failure
Public good
Inequality
Monopoly
Merit Good
Factor immobility
Agriculture
Cyclical instability
Externalities
Demerit Good
What is the main reason for types of market failure?
Externalities- when producing a good causes a cost/benefit to a third party.
What is the relationship between shareholders and top management?
Golden handcuff (make an offer he/she can´t say no to. Often giving the management stock options or stake in the company. With the top management also having ownership in the company, they will be more motivated to work just as hard as the owner because the company’s performance affects them as well. Booth on positive and negative ways.
What are compliance rules?
Can be very strickt rules. These are very important in international companies. If not respected and followed, you can literally be removed and fired on the same day.
