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MIE 201 EXAM 1 QUESTIONS WITH CORRECT ANSWERS

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MIE 201 EXAM 1 QUESTIONS WITH CORRECT ANSWERS

Institution
MIE 201
Course
MIE 201

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business model


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a clearly stated outline of how the business intends to generate revenue




legal differences in global competition


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USA & UK= common law: tradition, customs, judicial interpretation
France & Germany= civil law: legal codes
Iran & Pakistan= theocratic law: based on religious principles
-tax havens and bribery

,balance of payments


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the sum of all payments one nation receives from other nations - the sum of
all payments it makes to other nations, over some period of time




seasonal unemployment


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predictable increases and decreases in the need for workers in industries
with seasonal fluctuations in customer demand
-ex: agriculture, leisure and entertainment, retailing, and accounting
services




fiscal policy


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use of gov't revenue collection and spending to influence the business
cycle
-changes in the gov'ts revenues and expenditures to stimulate a slow
economy or dampen a growing economy that is in danger of overheating
and causing inflation




export subsidies

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a form of financial assistance in which producers receive enough money
from the gov't to allow them to lower their prices in order to compete more
effectively in the global market




economic environment


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the conditions and forces that affect the cost and availability of good,
services, labor and thereby shape the behavior of buyers and sellers




monetary policy


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gov't policy and actions taken by the Federal Reserve Board to regulate the
nation's money supply
-adjusting the money supply by increasing or decreasing the interest rates




consumer bill of rights (JFK)


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, -right to buy safe products- and to buy them safely
-right to be informed
-right to choose which product to buy
-right to be heard




transnational strategy


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a hybrid approach that attempts to reap the benefits of international scale
while being responsive to local market dynamics




import quotas


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limits placed on the quantity of imports a nation will allow for a specific
product




linking of risk and reward is important because


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businesses wouldn't have incentives to take risks without rewards and to
encourage smart and responsible decision making

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Institution
MIE 201
Course
MIE 201

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