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Economics

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Earlene Ritchie

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Cards in this guide (17)
Name three new business practices of global trade

Global trade involves business practices that cross international borders. Modern business practices may include multiple locations being used as well as telecommunication via teleconferencing.

What kind of loans does the World Bank make

The world bank lends money to memeber nation so that they could be carry out the work of public importance and usefulness.

What is one effect of a price floor

A surplus of supply

What do capital controls prevent

Speculators from rushing into and out of a country's market and disrupting its economy./

Environmental-protection laws can be bad for the economy because they may do what

Environmental-protection laws can be bad for the economy because they may increase unemployment.

What does increasing consumer confidence do

Increases purchases from producers

Globalization creates greater what

Interconnections among the people and economies of the world

How do central banks impact the global economy

They influence the national money supply,which affects the volume of international trade.

What limits specialization in the global economy

Trade barriers.

Because most developing countries have weak domestic industries they do not benefit from what

Free-trade policies

When might a country specialize in producing a particular good

When a country has an absolute advantage in production of that good it may specialize in producing that good.

What does predatory pricing involve

A large company charging below its production cost in order to eliminate competition

If developing countries have weak domestic industries they do not benefit from what

Free-trade policies

What have been negative effects of globalization

Higher prices for consumers

What is an example of a labor law in economics

A restriction on when a union may call a strike

Match each organization with its correct relationship to the government

A. Social security _ government agency

B. U.S. Postal Service _ government corporation

C. Boeing _ government contractor

Match each type of unfair business practice with its description (apex)

1.Vendor lock in: a company say a wide range of product can be used with its products but this is not true.

  1. Price fixing: a group of companies agree that all of them will charge the same price.

3.Predatory pricing: a large company charges a price below production cost in order to eliminate small competitors.

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