Intro to Business Unit 1 Review Ch. 1-3

Justice

The Questions of Fairness

Corporate social responsibility

The concern of businesses for the welfare of society as a whole, consists of obligations beyond those required by law or contracts.

Global Trade in the Untied States

The global market has created vast new business opportunities for many firms.

Which one characteristic most clearly defines a market structure?

The number of suppliers in the market

Economics

The study of how a society uses scarce resources to produce and distribute goods and services.

Exporting

least complicated and least risky

National debt

the accumulated total of all of the Federal government's budget deficits and surpluses.

tangible

touch and get hands on

Four components of Managing a Responsible Business

Economic, legal, ethical and philanthropic responsibility.

Cultural Barriers

Language, Customs

Unemployment Rate

Percentage of the total labor force that is not working but is actively seeking work. - Excludes discouraged workers.

Mixed Economies

Pure capitalism and communism are extremes; real-world economies fall somewhere in between.

Utilitarianism

Seeking the Best of the Majority

Businesses play a key role in determining our quality of life by providing jobs, goods, and services to society

True

A business is

an organization that strives for a profit by providing goods

Social factors

attitudes, values, ethics, and lifestyles

planned economies

communism and socialism

Antidumping laws

dumping is the practice of charging a lower price for a product in foreign markets than in its home country. (prevents gaining control).

Barriers to Trade

- Natural Barriers - Tariff Barriers - Non Tariff Barriers

Communism

Government owns all or most enterprises.

Changes in Demand:

Income, preferences, price of related products, expectations, and the number of buyers.

Cost-push

Production cost go up so we push prices up

Ethics

Set of moral standards for judging whether something is right of wrong

Macro Economics

The study of the whole economy as a whole - Focuses on depression , economic growth

Unethical Business Activities may include:

- Taking things that do not belong to you - Giving or allowing false impressions - Committing improper personal behavior - Permitting organizational abuse - Buying influence or engaging in a conflict of interest - Saying things you know are not true - Hiding or divulging information - Abusing power and mistreating individuals - Violation rules - Condoning unethical actions

Perfect Competition

-Characteristics: many firms, similar products, good information, easy entry and exit from market. -Perfectly competitive: prices determined solely by forces beyond their control

A "mixed economy" is an economic system that:

Combines private and government ownership of the factors of production

Physical Barriers

Distance

Which of the following is an example of a natural trade barrier

Distance

Which of the following best describes the business environment?

Dynamic

Free trade:

Establishes artificial barriers to trade

Changing Values of Currencies

Exchange rate is the price of one country's currency in terms of another.

The least costly and least risky method for selling a product on the global market is:

Exporting

____ are goods and services that are made in one country and sold to other countries.

Exports

Micro Economics

Focuses on individual parts of the economy - Focuses on us as individuals, and what it is that the ferns are doing and what we do to help business operate.

Types of unemployment

Frictional, Structural, Cyclical, and Seasonal.

The most basic measure of economic growth is the:

Gross domestic product

World Trade Organization (WTO):

Has emerged as the world's most powerful institution for reducing trade barriers and opening markets

Measuring Trade Between Nations

Key measures of international trade: exports and imports, the balance of trade, the balance of payments, and exchange rates.

corporate responsibility Pyramid

Legal, Economic, Philanthropic, Ethical

Protective Tariffs

Make imported products less attractive to buyers than domestic products

Fiscal Policy:

Making decisions as a government to keep things running

____ move resources, goods, services, and skills, across national boundaries without regard to the country in which they are headquartered.

Multinational corporations

Changes in Supply:

New technology, price of other goods, number of suppliers, and taxes.

The ____ created the world's largest free-trade zone.

North American Free Trade Agreement

Seasonal Unemployment

Not open year round - Example- Marina, Circus

Socialism

Some markets are controlled, and some are free. Significant central-government planning. State enterprises are managed by bureaucrats. These enterprises are rarely profitable.

Fiscal policy is concerned with:

Taxation and spending

Barriers to Entry:

Technological or legal conditions, control over a natural resource, and government orders.

Supply

the quantity of a good or service that businesses will make available at different prices (supply curve).

Demand

the quantity of a good or service that people are willing to buy at various prices.

Exports

goods and services made in one country and sold to others.

Imports

goods and services that are bought from other countries.

Cultural differences include

values, language, customs/traditions

A country's ____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

Culture

Monetary Policy

Government programs for controlling the amount of money circulating in the economy and interest rates.

Which of the following is NOT an example of a factor of production?

Competition

____ is the quantity of a good service that people are willing to buy at various prices

Demand

Frictional Unemployment

- 5% Unemployment expected to have - Short-term unemployment

The European Union

- Borderless economy with a common institution - Common currency - Brexit: United Kingdom

Capitalism

- Businesses are privately owned with minimal government ownership or interference. - Complete freedom of trade. No or little government control.

The multinational advantage

- Can often overcome trade problems - Ability to sidestep regulatory problems - Can shift production as economic conditions change - Can tap new technology from around the world - Can often save in labor costs

Structural Unemployment

- Caused by a mismatch between available jobs and the skills of available workers in an industry or religion. - 5% Unemployment expected to have

Why Nations Trade

- Fear of globalization and trade - Benefits of globalization

Economic Environment

- Highly developed: Switzerland, Japan, U.S. - Less developed: Sudan, Eritrea - Infrastructure

Trends in Global Competition

- Market expansion - Resource acquisition - The Emergence of China and India

Pure Monopoly

- Market structure in which a single firm accounts for all industry sales. - Example- rockefeller with oil, amazon, apple, microsoft

Demand-pull

Demand is high that they can raise price

Active ownership of a foreign company, with direct investors having either a controlling or large minority interest in the firm is called a(n):

Direct foreign investment

What is the primary difference between a good and a service

A good is tangible and a service is intangible

Ethical Issue

A situation where someone must choose between a set of actions that may be ethical or unethical

Balance of Payments

A summary of a country's international financial transactions showing the difference between the country's total payments to and its total receipts from other countries.

How has diversity impacted the marketing and customization of products?

Along with their numbers, the buying power of minorities is growing

The difference between a country's total payments to other countries and its total receipts from other countries is called its:

Balance of payments

The ____ is defined as the difference in value of a country's exports and imports over a period of time.

Balance of trade

free market is?

Capitalism

Cyclical Unemployment

Caused by downtime in business

Oligopoly

Characteristics: few firms and large capital requirements limit the number of firms

Monopolistic Competition

Characteristics: many firms, products have close substitutes but differ, and easy entry and exit from market.

Factors of production

natural resources, labor, capital and entrepreneurship

A total prohibition against importing certain products is called a(n):

Embargo

Licensing or Franchising

little risk, agrees to the use of manufacturing process, trademark, patent, or trade secret in exchange for a royalty or fee agreed upon by both parties

Intangible

non touchable

Equilibrium

point at which demand and supply intersect

An economic system is the combination of?

policies, laws, and choices made by its government to establish the systems to determine production and distribution.

Which of the following is probably the MOST difficult environmental factor

social change

The ____ of any country is measured by the output of goods and services people can buy with the money they have

standard of living