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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 2: Political and Economic Forces | - Market Economy vs. Command Economy - Property Rights and the Rule of Law |
| Key Topics Across All Competencies | - Currency Appreciation and Depreciation - International Trade Policies (Tariffs, Quotas) - Foreign Direct Investment (FDI) Impacts - Elastic vs. Inelastic Goods - Global Business Strategies and Porter's Framework - Supply and Demand Shifts |
| 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) |
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NEW QUESTION # 108
What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)
Answer: B,E
Explanation:
InGlobal Economics for Managers, the Federal Reserve expands aggregate demand byincreasing the money supplyandlowering interest rates, making options B and C correct.
Increasing the money supply provides banks with more reserves, encouraging lending. Lower interest rates stimulate borrowing by households and firms, increasing consumption and investment. Both channels raise aggregate demand.
The remaining options contract demand rather than expand it. Therefore, B and C are correct.
NEW QUESTION # 109
What is one example of something a copyright is used to protect?
Answer: B
Explanation:
InGlobal Economics for Managers,copyrightis identified as a form of intellectual property protection that applies tooriginal works of authorship, making option A-the content of a book-the correct answer.
Copyright protects the expression of ideas rather than the ideas themselves.
Copyright protection typically covers literary works, music, films, software code, artistic creations, and other original content fixed in a tangible medium. It grants the creator exclusive rights to reproduce, distribute, display, and perform the work for a specified period. This protection encourages creativity and innovation by allowing creators to earn economic returns from their work.
Option B refers totrademarks, which protect brand names, symbols, and slogans used to distinguish goods or services. Option C, the design of a logo, is also generally protected under trademark law. Option D describes a patent, which protects new inventions, processes, or designs with functional utility.
Global Economics for Managersemphasizes that strong intellectual property protection is critical for firms competing in knowledge-intensive industries. Copyright protection, in particular, plays a key role in publishing, entertainment, and software sectors.
Therefore, option A correctly identifies an example of what copyright is used to protect.
NEW QUESTION # 110
What are examples of fixed costs? (Choose TWO.)
Answer: C,E
Explanation:
InGlobal Economics for Managers,fixed costsare costs that do not vary with the level of output in the short run, making optionsC and Dcorrect.
Option C, astate license fee, is fixed because it must be paid regardless of how much output is produced.
Option D,monthly internet service, is also fixed since the cost remains constant even if production rises or falls.
Options A, B, and E arevariable costsbecause they increase as output increases. Sales commissions depend on sales volume, flour usage depends on bread production, and parts costs rise with the number of devices produced.
Understanding fixed costs is essential for break-even analysis and short-run production decisions. Thus, C and D are correct.
NEW QUESTION # 111
Which mode of entry is an equity-based entry mode?
Answer: C
Explanation:
InGlobal Economics for Managers, entry modes are commonly classified intonon-equity,contractual, and equity-basedmodes, depending on the level of ownership, control, and risk assumed by the firm. A50/50 joint ventureis an equity-based entry mode, making option B the correct answer.
Equity-based entry modes involveownership of assets in the foreign market. In a 50/50 joint venture, two firms-typically one domestic and one foreign-each contribute capital and share ownership, control, profits, and risks equally. This structure allows firms to access local market knowledge, share financial risk, and comply with host-country regulations that may restrict full foreign ownership.
Option A, franchising, and option C, licensing, arecontractual entry modes. In these arrangements, firms transfer intellectual property or business formats to foreign partners without taking ownership stakes. While these modes involve lower risk and investment, they also provide less control. Option D, indirect exports, is a non-equity modethat requires minimal commitment and no foreign ownership.
Global Economics for Managersemphasizes that equity-based modes like joint ventures are often chosen when firms need local partners, face political or regulatory constraints, or operate in culturally or institutionally complex environments. However, they also involve higher risk due to shared control and potential partner conflicts.
Thus, option B correctly identifies an equity-based mode of entry.
NEW QUESTION # 112
What happens when the Federal Reserve increases the money supply?
Answer: B
NEW QUESTION # 113
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