BUSI 3250 Auburn Exam 2 LATEST UPDATE

BUSI 3250 Auburn Exam 2 LATEST UPDATE BUSI 3250 Auburn Exam 2 Nationalization is also called - ANSExpropriation the taking of private property by a government to make it public - ANSNationalization US Government took over ownership of what company during crisis of ? - ANSGM the selling of government owned property to the private sector to gain more efficiency in business operations, to raise money or to change in political climate/philosophy - ANSPrivatization (why governments sell businesses) Protect the economic activities of citizens. Unfair competition is minimized through - ANSnational laws, negotiations between governments, efforts of institutions like World Bank unlawful acts of violence committed for a wide variety of reasons - ANSterrorism What provides a source of operating funds for terrorists? - ANSKidnapping hijacking and kidnapping on the seas - ANSPiracy any illegal Internet-mediated activity that takes place in electronic networks - ANSCybercrime North Korea tries to hack Pfizer for COVID data is an example of? - ANSCybercrime What are four areas of increasing concern to governments? - ANSprotection from terrorism, piracy, kidnapping, cybercrime and other threats Country Risk Assessment - ANSAn assessment of a country's economic situation and politics to determine how much risk to employees, property, and investment exists for the firm doing business there 6 reasons for restricting trade - ANSProvide for National Defense, Impose Sanctions, Protect an Infant or Dying Industry, Protect Domestic Jobs, Ensure Fair Competition, Retaliate While trade is promoted - in 1982 ag tariffs averaged _______% - in comparison manufactured good tariffs=____% - ANS62%; 4% Reasons to restrict trade to provide for national defense - ANS-Certain industries need protection from imports because they are vital to security -economists say this is a weak argument Reasons to restrict trade to impose sanctions - ANS-Inflict economic damage, punish, or encourage change of behavior -Seldom achieve their goal -Produce collateral economic damage Reasons to restrict trade to Protect an Infant or Dying Industry - ANS-Give infant industries a chance to grow and build comparative advantage -Without this, lower-cost imports will underprice in local marke -Slow down impact of dying industry—move capital into other sectors US first pass a law against foreign goods dumping in 1916. No law against US companies dumping abroad though - ANSExample of retailation Dumping is defined in 3 ways - ANS- selling a product abroad for less than cost of production - selling product abroad for less than price in home market - selling product abroad for less than price to third-party countries Predatory dumping - ANSsetting price below another country's to put them out of business/competition Social dumping - ANSwhen producers have lower wage rates, lower social costs (unemployment taxes and env. regulations) poor worker benefits, poor working conditions Environmental dumping - ANSwhen an exporter can sell at lower costs due to the country's loose environmental standards Taxes on imported goods for the purpose of raising their price to reduce competition for local producers or stimulate local production - ANSTariffs