C211 OA Exam Study Guide Questions And Answers Verified 100% Correct |latest updates|

C211 OA Exam Study Guide Questions And Answers Verified 100% Correct |latest updates| a means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions - ANSWER strategic heding amount of resources committed to entering a foreign market - ANSWER -scale of entry how do institutions reduce uncertainty? - ANSWER -by signaling which conduct is legit and which is not pillar of formal institution, coercive power of government - ANSWER -regulatory pillar of informal institution, the mechanism through which norms influence individual and firm behavior - ANSWER -normative pillar of informal institution, taken for granted values and beliefs that guide behavior - ANSWER -cognitive institutions represented by laws, regulations and rules - ANSWER -formal institutions represented by norms, culture and ethics - ANSWER -informal the necessity of making rational decisions in the absence of complete information - ANSWER -bounded rationality bounded rationality is a position in which view of global business - ANSWER institution political system that affects global business with an individuals right to freedom of expression and organization - ANSWER -democracy political system that affects global business with hostility towards business, higher political risk such as nationalism - ANSWER -totalitarianism political system where citizens elect representatives to govern the country on their behalf - ANSWER -democracy political system where one person or party exercises absolute political control over the population - ANSWER -totalitarianism law that uses comprehensive statutes and codes as a primary means to form legal judgements - ANSWER -civil law that is shaped by precedents and traditions from previous judicial decisions - ANSWER -common law that is based on religious teachings - ANSWER -theocratic less confrontational, shorter, less specific form of law - ANSWER -civil common law is ______ flexible than civil law - ANSWER -more the legal right to use an economic resource and to derive income and benefits from it - ANSWER -property right legal rights awarded by government authorities to investors of new products or processes who are given monopoly rights to derive income from inventions - ANSWER -patent exclusive legal rights of authors and publishers to publish and disseminate their work - ANSWER -copyright exclusive legal rights of firms to use specific names, brands and designs to differentiate their products - ANSWER -trademark characterized by the invisible hand of market forces where the government takes a hands off approach - ANSWER -market factors of production should be government owned or state owned and all supply, demand and pricing are planned by the government - ANSWER -command the economic system of most countries - ANSWER -mixed economy a curve that represents a consumers preferences - ANSWER -indifference curve ________ indifference curves are preferred to ______ ones - ANSWER -higher, lower indifference curves are bowed ______ - ANSWER -inward the rate at which a consumer is willing to substitute one good for another - ANSWER -marginal rate of substitution the limit on consumption bundles that a consumer can afford - ANSWER -budget constraint a piece of analysis that shows the combination of goods the consumer can afford given their income and price of goods - ANSWER -budget constraint an increase in income will shift the budget constraint ________ - ANSWER outward the slope of the indifference curve equals the slope of the - ANSWER -budget constraint the consumer chooses consumption of the two goods so that the marginal rate of substitution equals the - ANSWER -relative price the increase in total cost that results from adding an additional unit of production - ANSWER -marginal cost formula to calculate marginal cost - ANSWER -change in total cost / change in quantity a firm will produce the quantity where MR = MC as long as ________ - ANSWER -price AVC when price falls below the AVC, what will a firm do? - ANSWER -shut down temporarily someone who has to take the market price of a product and accept it as their own price - ANSWER -price taker the demand curve for a perfectly competitive firm is - ANSWER -horizontal