MKT 4310 Exam 1 Questions AND Correct Answers
4 main types of economic systems - ✔✔market capitalism
centrally planned socialism
centrally planned capitalism
market socialism
adaptation - ✔✔essence of segmentation; think globally, act locally
associative counterfeit/imitation - ✔✔product name differs slightly from a well-known brand
attitudes - ✔✔learned tendency to respond in a consistent way to a given object or entity
belief - ✔✔an organized pattern of knowledge that an individual holds to be true about the world
bribery - ✔✔corrupt business practice of demanding or offering some type of consideration when
negotiating a cross-border deal
causes of political risk - ✔✔- tension between aspirations and reality
- primarily occurs in lower and lower-middle income countries
centrally planned capitalism - ✔✔- economic system in which command resource allocation is used
extensively in an environment of private resource ownership
- examples: Sweden & Denmark
- have high tax rates (45-60%)
centrally planned socialism - ✔✔- opposite of market capitalism
- state holds broad powers to serve the public interest; decide what goods and services are produced
and in what quantity
- consumers can spend on what is available
,- government owns entire industries
- demand typically exceeds supply
- little reliance on product differentiation, advertising, pricing strategy
common market - ✔✔- includes elimination of internal barriers to trade
- establishes common external barriers to trade
- allows for free movement of factors of production (labor, capital, information)
common market examples - ✔✔European Economic Area (EEA)
competitive advantage - ✔✔success over competition in industry at value creation; achieved by
integrating and leveraging operations on a worldwide scale
"better, cheaper, faster"
concessions and agreements - ✔✔period when mutual concessions might be made, when there is some
yielding of fixed positions in order to reach an agreement
confiscation - ✔✔occurs when no compensation is provided
copyright - ✔✔establishes ownership of a written, recorded, perform, or filmed creative work
counterfeiting - ✔✔unauthorized copying and production of a product
creeping expropriation - ✔✔limits economic activities of foreign firms
culture - ✔✔ways of living, built up by a group of human beings that are transmitted from one
generation to another
, culture shock - ✔✔refers to feelings on impotence on the part of strangers who are not able to deal
completely with their surroundings due to unfamiliarity with the culture and inability to perform the
necessary social skills
customs unions - ✔✔- evolution of free trade area
- includes elimination of internal barriers to trade
- establishes common external barriers to trade
- lowers barriers with each other
- can control third party agreements
economic freedom - ✔✔rankings of economic freedom among countries range from "free" to
"repressed"
economic integration - ✔✔- free trade area
- customs unions
- common market
- economic unions
economic union - ✔✔- eliminates internal barriers to trade
- establishes common external barriers to trade
- coordinates and harmonizes
Edward T. Halls "silent languages" - agreements between people - ✔✔the interpretation of contracts
can differ
Edward T. Halls "silent languages" - friendship patterns - ✔✔the meaning of friendship can differ
Edward T. Halls "silent languages" - material possessions - ✔✔the meaning of possession can differ
Edward T. Halls "silent languages" - space - ✔✔the comfortable distance between two people may vary
4 main types of economic systems - ✔✔market capitalism
centrally planned socialism
centrally planned capitalism
market socialism
adaptation - ✔✔essence of segmentation; think globally, act locally
associative counterfeit/imitation - ✔✔product name differs slightly from a well-known brand
attitudes - ✔✔learned tendency to respond in a consistent way to a given object or entity
belief - ✔✔an organized pattern of knowledge that an individual holds to be true about the world
bribery - ✔✔corrupt business practice of demanding or offering some type of consideration when
negotiating a cross-border deal
causes of political risk - ✔✔- tension between aspirations and reality
- primarily occurs in lower and lower-middle income countries
centrally planned capitalism - ✔✔- economic system in which command resource allocation is used
extensively in an environment of private resource ownership
- examples: Sweden & Denmark
- have high tax rates (45-60%)
centrally planned socialism - ✔✔- opposite of market capitalism
- state holds broad powers to serve the public interest; decide what goods and services are produced
and in what quantity
- consumers can spend on what is available
,- government owns entire industries
- demand typically exceeds supply
- little reliance on product differentiation, advertising, pricing strategy
common market - ✔✔- includes elimination of internal barriers to trade
- establishes common external barriers to trade
- allows for free movement of factors of production (labor, capital, information)
common market examples - ✔✔European Economic Area (EEA)
competitive advantage - ✔✔success over competition in industry at value creation; achieved by
integrating and leveraging operations on a worldwide scale
"better, cheaper, faster"
concessions and agreements - ✔✔period when mutual concessions might be made, when there is some
yielding of fixed positions in order to reach an agreement
confiscation - ✔✔occurs when no compensation is provided
copyright - ✔✔establishes ownership of a written, recorded, perform, or filmed creative work
counterfeiting - ✔✔unauthorized copying and production of a product
creeping expropriation - ✔✔limits economic activities of foreign firms
culture - ✔✔ways of living, built up by a group of human beings that are transmitted from one
generation to another
, culture shock - ✔✔refers to feelings on impotence on the part of strangers who are not able to deal
completely with their surroundings due to unfamiliarity with the culture and inability to perform the
necessary social skills
customs unions - ✔✔- evolution of free trade area
- includes elimination of internal barriers to trade
- establishes common external barriers to trade
- lowers barriers with each other
- can control third party agreements
economic freedom - ✔✔rankings of economic freedom among countries range from "free" to
"repressed"
economic integration - ✔✔- free trade area
- customs unions
- common market
- economic unions
economic union - ✔✔- eliminates internal barriers to trade
- establishes common external barriers to trade
- coordinates and harmonizes
Edward T. Halls "silent languages" - agreements between people - ✔✔the interpretation of contracts
can differ
Edward T. Halls "silent languages" - friendship patterns - ✔✔the meaning of friendship can differ
Edward T. Halls "silent languages" - material possessions - ✔✔the meaning of possession can differ
Edward T. Halls "silent languages" - space - ✔✔the comfortable distance between two people may vary
