What are the factors that determine the costs of doing business in a country?
What will be an ideal response?
Ans: Costs of doing business internationally are determined by political, economic, and legal factors. Political factors could include paying off powerful entities before the government will allow them to do business. Economic factors include the sophistication of the country's economy. The cost of doing business will increase in countries that lack infrastructure. Legal factors include the rules and regulations of local laws. This can also increase cost because adhering to workplace environmental pollution, product safety and more regulations can add up. The opposite is also true. Doing business in countries that do not handle business law well can lead to income loss and or theft of intellectual property.
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According to the Institute for Economics and Peace (IEP), as of 2012, "were the world to reduce its expenditures on violence by _________ percent, it would be enough to provide the necessary money for the European stability fund, repay Greece's debt, and cover the increase in funding required to achieve the United Nation's Millennium Development Goals."
a) 10 b) 30 c) 15 d) 25
One of the major benefits to society of monopolistic competition is
A) high prices. B) restricted output. C) product differentiation. D) the excess capacity. E) the marku
How do RBC economists face the business cycle fact that inflation is procyclical?
A) They argue that even though inflation doesn't fit their theory, everything else does, and inflation is not important. B) They note that inflation would not be procyclical if monetary policy were conducted properly. C) They argue that inflation is procyclical only because monetary policy shocks are the main cause of business cycles. D) They use alternative statistical methods that suggest that inflation is countercyclical.
By 2016, the unemployment rate in the US had fallen from a peak of 10% in 2009 to:
A. under 5%. B. 7.8%. C. 6.2%. D. under 3%.