Exam 2 study guide IB3000

When measuring the value produced in an economy, most international organizations prefer to use

GNI

________blank refers to the total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad.

Gross national income

The government of a country may decide it wants to extract more money from a business, particularly if the government believes the company is concealing profits. What measure might it take to achieve this?

It could nationalize the business.

How does a variable levy affect domestic producers?

It prevents an imported good form being priced lower than the domestic good.

How can the current free floating and managed exchange rate system best be described?

It seems to be meeting its present challenges, including the 2008 liquidity crisis.

________ is a measure of how the population is distributed over a nation's area, such as urban versus rural.

Population distribution

WIPO and TRIPS represent

UN and WTO agencies or programs that focus on IP.

Sharone and her husband have developed a pizza pan that is guaranteed to keep the crust from sticking to the pan and washes clean with just water. They have applied to have exclusive rights to this product. What did they apply for?

a patent

An international reserve asset called special drawing rights is

a virtual currency with no tangible presence.

A currency exchange arrangement with no separate legal tender is essentially

adopting the currency of another country

When a government requires a permit to purchase foreign currency, the exchange rates

are often above the free market rate.

The most important sources of international law are

bilateral and multilateral treaties, along with customary law.

During a trial, the judge openly questioned the defendant and her lawyers and often challenged the presented evidence. There wasn't a jury and the judge made the final decision. Which type of legal system would include this scenario?

civil

The balance of payments account is divided into the following three major subaccounts:

current, capital, and reserves

A corporation would implement a country risk assessment in order to

estimate the risk to business employees, property, and investment.

"Express kidnapping" targets

expatriates

The Alien Tort Statute allows non-U.S. nationals to

file lawsuits in the United States courts for alleged violations of international law.

The ________blank includes all the uncontrollable forces originating outside the home country that surround and influence the firm.

foreign environment

The legal system of a country includes

governing principles, legislation and regulations.

Nationalization and privatization are implemented by

government

Francis is an economist and typically measures the overall economic output of a nation even though he realizes it doesn't account for the flows of FDI and income into and out of the nation. What measure is Francis using?

gross domestic product

The International Organization for Standardization (ISO), the International Telecommunications Union (ITU), and the International Electrotechnical Commission (IEC) all promote

harmonization in technology-related fields through standards.

One response to a large international debt is for a government to

impose price controls.

A government that makes radical changes to existing policies is demonstrating

instability

Countries maintain reserve accounts in order to

intervene in currency markets when needed.

A business would obtain KRE insurance to cover losses associated with

kidnapping situations associated with a foreign involvement.

Exchange rate fluctuations are best described as

not yet fully understood by economists

Countervailing duties are put in place to

offset the effects of a subsidy.

A value-added tax is actually a sales tax that is

paid in stages along the process from raw materials to consumer and then credited after final sale

Kory has been asked to determine how many people live in the 50 square miles surrounding the location of the proposed building project. What does Kory need to measure?

population density

When a government transfers the assets of a company from the public sector to the private sector, it is an example of

privatization

Bath Babies Inc. was held responsible in court for failing to indicate on its labels that its baby bath wash contained traces of mercury and could potentially harm infants. Which area of law is playing a part in this scenario?

product liability

A government that holds to predictable fiscal, monetary, and political policies is considered

stable

The balance part of the BOP is explained by

the accounts being double-entry, so they are always balanced.

Because of the importance of economic information to the control and planning functions at headquarters, the collection of data and preparation of reports are usually the responsibility of

the home office.

Where are the greatest urban shifts now occurring?

the least developed countries

According to the text, what is the purpose of economic analyses?

to assess the overall outlook for the economy and the impact of economic changes on the firm

A canned food company is frustrated in its efforts to sell products in Europe because several countries are demanding that the company label products in the specific language associated with the country. These demands are examples of a

trade obstacle.

Most of the transactions in the foreign currency market are OTC which means that

trades are done electronically. Correct

Arbitration is a private solution that is

usually binding on all parties.