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| Section | Objectives |
|---|---|
| Competency 1: International Trade and Currency Exchange | - Introduction to International Trade Theories - Currency Exchange Rate Determination - Impact of Interest Rates on Financial Flows and Exchange Rates |
| Competency 3: Economic Decision-Making by Firms and Customers | - Consumer Behavior (Budget Constraint, Indifference Curves) - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly) |
| Competency 2: Political and Economic Forces | - Market Economy vs. Command Economy - Property Rights and the Rule of Law |
| Key Topics Across All Competencies | - Elastic vs. Inelastic Goods - Foreign Direct Investment (FDI) Impacts - Currency Appreciation and Depreciation - Global Business Strategies and Porter's Framework - Supply and Demand Shifts - International Trade Policies (Tariffs, Quotas) |
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85. Frage
What happens when the Federal Reserve increases the money supply?
Antwort: A
86. Frage
When supply decreases and demand stays the same, what happens to the equilibrium point of price and quantity? Choose two answers.
Antwort: B,D
Begründung:
When supply decreases while demand remains unchanged, the supply curve shifts left. At the original price, there is now less quantity supplied than quantity demanded, creating upward pressure on price. As price rises, consumers reduce quantity demanded until the market reaches a new equilibrium. Option A is correct because equilibrium price increases. Option E is correct because equilibrium quantity decreases. This result often occurs when input costs rise, production disruptions occur, regulation increases production costs, or natural disasters reduce available supply. Options B, C, D, and F contradict the standard supply-and-demand outcome. Managers must understand this relationship because supply disruptions can raise selling prices, reduce sales volume, affect inventory planning, and influence sourcing strategy. The basic result is higher price and lower quantity.
87. Frage
One view of globalization claims that human civilization has always had some type of globalization.
Which view is it?
Antwort: C
Begründung:
InGlobal Economics for Managers, thelong-run historical viewof globalization argues that globalization is not a recent phenomenon, but rather a process that has existed throughout human history. This view emphasizes that trade, migration, cultural exchange, and cross-border interactions have occurred for thousands of years, long before modern multinational enterprises or digital technologies emerged.
Under this perspective, early examples of globalization include ancient trade routes such as the Silk Road, maritime trade across the Mediterranean, and colonial-era exchanges of goods, capital, and labor. Although the scale, speed, and complexityof globalization have increased dramatically in recent decades, the underlying idea of cross-border integration is seen as historically continuous.
This view contrasts with more recent interpretations that define globalization as a post-World War II or late
20th-century phenomenon driven by multinational corporations, trade liberalization, and digital communication. The long-run historical view does not deny the importance of these modern forces but argues that they represent anintensification, not the origin, of globalization.
For managers, this perspective is important because it frames globalization as a persistent structural force rather than a temporary trend. Firms operating globally must recognize that international economic integration has deep roots and is likely to continue evolving rather than reversing permanently.
Therefore, option C correctly identifies the long-run historical view as the perspective that sees globalization as an enduring feature of human civilization.
88. Frage
If the demand for a good is inelastic, what is true?
Antwort: A
Begründung:
InGlobal Economics for Managers, demand isinelasticwhenquantity demanded responds only slightly to changes in price, making option B correct.
Inelastic demand is common for necessities, goods with few substitutes, or goods that represent a small portion of income. When demand is inelastic, price and total revenue move in the same direction.
Options A, C, and D describe elastic demand.
Thus, option B correctly defines inelastic demand.
89. Frage
What are represented by informal institutions?
Antwort: B
Begründung:
Informal institutions are unwritten social constraints that shape behavior, including norms, customs, values, traditions, and ethics. Option B is correct because ethics represents an informal guide to behavior rather than a formally codified legal requirement. Informal institutions reduce uncertainty by helping people understand what is socially acceptable, trustworthy, or legitimate in a particular society. They matter greatly in global business because managers may comply with formal laws but still fail if they ignore local customs or ethical expectations. Rules and regulations are usually formal when written and enforced by legal authorities. Written laws are clearly formal institutions. Informal institutions are enforced mainly through social approval, reputation, relationships, and cultural expectations rather than courts or government penalties.
90. Frage
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