RMI 2302 EXAM 3 WITH COMPLETE SOLUTIONS 100% VERIFIED
Political Risk - ANSWER o Passage of laws
o Foibles of leaders
o Rise of popular movements
Regulating Derivatives - ANSWER - Speculators often make markets work, limiting
speculation will limit market success
- Internal regulation has NOT been successful in limiting derivative risk
- Derivatives are a global product making domestic regulation difficult
Risks that threaten the most economies - ANSWER - Fiscal Crisis
- Unemployment/Underemployment
Developed countries help developing countries alleviate poverty - ANSWER outsourcing
Global Risk - ANSWER occurrence that causes significant negative impact for several
countries and industries over a time frame up to 10 years
"risk in focus" - ANSWER - (Dis)Empowered Citizen
- Climate change and food security
- Global Disease
GDP - ANSWER - Primary measure of production
- Doesn't take into account ownership
- Doesn't tell us what is produced
- total value of production using market prices
, Drivers of (Dis)Empowered Citizen - ANSWER - Economic
- Environmental
- Political
- Technological
Less developed countries can spur economic development by - ANSWER Attract FDI
(Foreign Direct Investment)
- Investment by a company in one country establish business or acquire business assets
in the other country
Warren Buffet - ANSWER Derivatives are financial weapons of mass destruction
Demographic transition - ANSWER - Three phases
• Pre-transition
• Transition
• Post-transition
Pre-transition - ANSWER high birth & death rates
Transition - ANSWER low death rates and high birth rates = population explosion -
between 1700-2000
Post-transition - ANSWER low death rates and birth rates - population maintenance
Causes of poverty - ANSWER - quality of labor stock of capital/capital accumulation
- technology
- efficiency, population
Political Risk - ANSWER o Passage of laws
o Foibles of leaders
o Rise of popular movements
Regulating Derivatives - ANSWER - Speculators often make markets work, limiting
speculation will limit market success
- Internal regulation has NOT been successful in limiting derivative risk
- Derivatives are a global product making domestic regulation difficult
Risks that threaten the most economies - ANSWER - Fiscal Crisis
- Unemployment/Underemployment
Developed countries help developing countries alleviate poverty - ANSWER outsourcing
Global Risk - ANSWER occurrence that causes significant negative impact for several
countries and industries over a time frame up to 10 years
"risk in focus" - ANSWER - (Dis)Empowered Citizen
- Climate change and food security
- Global Disease
GDP - ANSWER - Primary measure of production
- Doesn't take into account ownership
- Doesn't tell us what is produced
- total value of production using market prices
, Drivers of (Dis)Empowered Citizen - ANSWER - Economic
- Environmental
- Political
- Technological
Less developed countries can spur economic development by - ANSWER Attract FDI
(Foreign Direct Investment)
- Investment by a company in one country establish business or acquire business assets
in the other country
Warren Buffet - ANSWER Derivatives are financial weapons of mass destruction
Demographic transition - ANSWER - Three phases
• Pre-transition
• Transition
• Post-transition
Pre-transition - ANSWER high birth & death rates
Transition - ANSWER low death rates and high birth rates = population explosion -
between 1700-2000
Post-transition - ANSWER low death rates and birth rates - population maintenance
Causes of poverty - ANSWER - quality of labor stock of capital/capital accumulation
- technology
- efficiency, population
