AGB 302 EXAM 2027 ANSWERS AND QUESTIONS
SET A+
ethics - ✔✔the principles of right and wrong that guide an individual in making decisions
✔✔ethical strategy - ✔✔a course of action that does not violate a company's business
ethics
✔✔Friedman Doctrine - ✔✔the only social responsibility of business is to increase
profits, so long as the company stays within the rules of law
✔✔Culturual Relativism - ✔✔belief that cultures should be judged by their own
standards
✔✔Utilitarian Approach - ✔✔guided by what will result in the greatest good for the
greatest number of people
✔✔john rawls - ✔✔veil of ignorance
✔✔a class system is more or less rigid than a caste - ✔✔less
✔✔Max Weber - ✔✔The Protestant Ethic and the Spirit of Capitalism
✔✔buddhism does not support - ✔✔the caste system
✔✔tragedy of the commons - ✔✔people acting individually and in their own interest use
up commonly available but limited resources
✔✔facilitating payments - ✔✔Payments made to foreign officials to ensure that there is
no obstruction to the transaction.
✔✔Noblese Oblige - ✔✔idea that they upper classes have the responsibility/right to
take care of those under them
, ✔✔free trade - ✔✔international trade left to its natural course without tariffs, quotas, or
other restrictions.
✔✔david ricardo - ✔✔theory of comparative advantage
✔✔heckscher ohlin - ✔✔export goods that make intensive use of factors that are locally
abundant
✔✔raymond vernon - ✔✔Product life cycle theory
✔✔new trade theory - ✔✔countries specialize because in certain industries the world
market can only support a limited number of firms (entering the market early is better)
✔✔Mercantilism - ✔✔max exports min imports (ZERO-SUM GAME)
✔✔absolute advantage creator - ✔✔adam smith
✔✔when is ppf a straight line - ✔✔constant return to specialization
✔✔diminishing returns - ✔✔benefit from an extra unit of an input declines as the
quantity of the input increases
✔✔Product Life Cycle Theory - ✔✔observation that most new world products are from
the U.S.
✔✔economies of scale - ✔✔unit cost reductions associated with a large scale of output
(reduced ability to make variety)
✔✔Porter's Theory of National Competitive Advantage - ✔✔-factor endowments
-demand conditions
-related and supporting industries
-firm strategy, structure, and rivalry
✔✔firms involved with international trade influence - ✔✔government policy
✔✔voluntary export retraint - ✔✔a quota on trade imposed by the exporting country
✔✔what is the goal of tariff rate quotas - ✔✔limit imports over quota
✔✔how does a voluntary export restraint benefit domestic producers - ✔✔limiting import
competition
✔✔dumping - ✔✔Selling goods in another country below market prices
SET A+
ethics - ✔✔the principles of right and wrong that guide an individual in making decisions
✔✔ethical strategy - ✔✔a course of action that does not violate a company's business
ethics
✔✔Friedman Doctrine - ✔✔the only social responsibility of business is to increase
profits, so long as the company stays within the rules of law
✔✔Culturual Relativism - ✔✔belief that cultures should be judged by their own
standards
✔✔Utilitarian Approach - ✔✔guided by what will result in the greatest good for the
greatest number of people
✔✔john rawls - ✔✔veil of ignorance
✔✔a class system is more or less rigid than a caste - ✔✔less
✔✔Max Weber - ✔✔The Protestant Ethic and the Spirit of Capitalism
✔✔buddhism does not support - ✔✔the caste system
✔✔tragedy of the commons - ✔✔people acting individually and in their own interest use
up commonly available but limited resources
✔✔facilitating payments - ✔✔Payments made to foreign officials to ensure that there is
no obstruction to the transaction.
✔✔Noblese Oblige - ✔✔idea that they upper classes have the responsibility/right to
take care of those under them
, ✔✔free trade - ✔✔international trade left to its natural course without tariffs, quotas, or
other restrictions.
✔✔david ricardo - ✔✔theory of comparative advantage
✔✔heckscher ohlin - ✔✔export goods that make intensive use of factors that are locally
abundant
✔✔raymond vernon - ✔✔Product life cycle theory
✔✔new trade theory - ✔✔countries specialize because in certain industries the world
market can only support a limited number of firms (entering the market early is better)
✔✔Mercantilism - ✔✔max exports min imports (ZERO-SUM GAME)
✔✔absolute advantage creator - ✔✔adam smith
✔✔when is ppf a straight line - ✔✔constant return to specialization
✔✔diminishing returns - ✔✔benefit from an extra unit of an input declines as the
quantity of the input increases
✔✔Product Life Cycle Theory - ✔✔observation that most new world products are from
the U.S.
✔✔economies of scale - ✔✔unit cost reductions associated with a large scale of output
(reduced ability to make variety)
✔✔Porter's Theory of National Competitive Advantage - ✔✔-factor endowments
-demand conditions
-related and supporting industries
-firm strategy, structure, and rivalry
✔✔firms involved with international trade influence - ✔✔government policy
✔✔voluntary export retraint - ✔✔a quota on trade imposed by the exporting country
✔✔what is the goal of tariff rate quotas - ✔✔limit imports over quota
✔✔how does a voluntary export restraint benefit domestic producers - ✔✔limiting import
competition
✔✔dumping - ✔✔Selling goods in another country below market prices
