MANG 360 Exam 1

International Monetary Fund

International institution set up to maintain order in the international monetary system

World Bank

International institution set up to promote general economic development in the world's poorer nations

United Nations

International institution with 191 member countries created to preserve peace

General Agreement of Tariffs and Trade (GATT)

International treaty that committed signatures to lowering barriers to the free flow of goods across national borders and led to the World Trade Organization (WTO)

G20

Established in 1999, the G20 compromises the finance ministers and central bank governors of the 19 largest economics in the world, plus representatives from the European union and the European central

In a market economy, a supply restriction occurs when a single firm monopolizes a market

TRUE

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and western Europe

TRUE

Since the 1960s, 2 notable trends in the demographics of the miltumational enterprise have been (1) the rise of the non-US multinational and (2) the growth of multinationals

TRUE

The world bank has focused on making low-investment loans to cash-strapped governments in poor nations that wish to undertake infrastructure investments (such as building dams or roads)

TRUE

Foreign Corrupt Practices Act

U.S law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions

The _________ was created 1944 by 44 nations that met in Breton Woods, New Hampshire to promote economic development

World Bank

multinational enterprise MNE

a firm that own business operations in more than one country

command economy

an economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government

collectivism

an emphasis on collective goals as opposed to individual goals

individualism

an emphasis on the importance of guaranteeing individual freedom and self-expression

international business

any firm that engages in international trade or investment

property rights

bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource

What has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances?

containerization

What contributed to the Great Depression of the 1930s?

countries progressively raised trade barriers against each other

Foreign direct investment

direct investment in business operations in a foreign country

totalitarianism

form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited

World Intellectual Property Organization

group of 185 countries that have signed international treaties designed to protect intellectual property

factors of production

inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how

product liability

involves holding a firm and its officers responsible when a product causes injury, death, or damage

globalization of markets

moving away from an economic system in which national markets are distinct entities, isolated by trade barriers, and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global market

International trade

occurs when a firm exports goods or services to consumers in another country

intellectual property

products of the mind, ideas (books, music, computer software, design, technological know-how). Intellectual property can be protected by patent, copyrights, and trademarks

What is a feature of right-wing totalitarianism?

provision of partial individual economic freedom along with restricted individual political freedom

Property safety laws

set certain safety standards to which a product must adhere

market economy

the allocation of resources is determined by the invisible hand of the price system

World Trade Organization

the organization that succeeded the General Agreement on Tariffs and Trade (GATT) as a result of the successful completion of the Uruguay round of GATT negotiations

Moores Law

the power of microprocessor technology doubles and its costs of production fall in half every 18 months

privatization

the sale of state-owned enterprises to private investors

Political Economy

the study of how political factors influence the functioning of an economic system

stock of foreign direct investment

the total accumulated value of foreign owned assets at a given time

The stock of foreign direct investment refers to _______.

the total cumulative value of foreign investments

What is true regarding to the changes in the global economy of the 21st century?

the world is moving towards an economic system that us more favorable for international business

socialists

those who believe in public ownership of the mean of production for the common good of society

communists

those who believe socialism can be achieved only through revolution and totalitarian dictatorship

globalization

trend away from distinct national economic units and toward one huge global market

globalization of production

trend by individuals firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of factors of production

Contracts drafted under a common law framework tend to be

very detailed with contingencies spelled out

private action

violation of property rights through theft, piracy, blackmail, and the like by private individuals or groups

public action

violation of property rights when public officials extort income, resources, or the property itself from property holders

tribal totalitarianism

a political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power

representative democracy

a political system in which citizens periodically elect individuals to represent them in government

right-wing totalitarianism

a political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism

theocratic totalitarianism

a political system in which political power is monopolized by a party, group, or individual that governs according to religious principles

civil law system

a system of law based on a very detailed set of written laws and codes

common law

a system of law based on tradition, precedent, and customer. when law courts interpret common law, they do so with regard to these characteristics

communist totalitarianism

a version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship

United Nations Convention on Contracts for the International Sale of Goods (CIGS)

agreement establishing a uniform set of rules governing contracts between businesses in different nations

Historically, command economies were found in ______, where collectivists goals were given priority over individual goals

communist countries