WGU C211 - Global Economics for Managers

human history "New" view on globalization - A force sweeping through the world in recent times. "Pendulum" view on globalization - One that swings from one extreme to another from time to time 3 types of elasticity, their equations, purpose and outcomes - (1) Price elasticity of demand - % chg in Q D / % chg in P (2) Income elasticity - % chg in Q D / % chg in income (3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P Absolute advantage - The economic advantage one nation enjoys that is superior to other nations Benefits to a country receiving FDI - Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Budget constraint - The consumption bundles that the consumer can afford. Civil law - Law that uses comprehensive statutes and codes as a primary means to form legal judgments. Classical theories of international trade - Mercantilism, Absolute advantage, and Comparative advantage Classical theory view - Static Cognitive pillar - The internalized, taken-for-granted values and beliefs that guide behavior. (beliefs between right/wrong) Command economy - One that is defined by a government taking all factors of production to be government-owned or state-owned, and all supply, demand, and pricing are planned by