Defs II

Question 1

Public Relation (PR)

Answer 1

Describes the strategic communication process, which enables companies to build mutual beneficial relationships with the general public. It can be used to eran the publics support or in order to influence their opinion favourably.

Question 2

Recession

Answer 2

A recession is a period of temporary economy decline. It can be caused by catastrophic events, for example a global pandemic, and may cause negative impact for businesses or even entire countries.

Question 3

Privatization

Answer 3

A privatization involves the selling off of state-owned assets to companies. Governments may choose this option in order to increase efficiency or to save taxpayers’ money.

Question 4

Merger

Answer 4

A Merger is a form of inter-firm cooperation, where two, usually equally-sized, companies become one. Merger can be conducted in order to increase the wealth of the companies shareholders.

Question 5

Tariff

Answer 5

A traiff is a tax, imposed on the import or export of a specific class of goods or products. It is a form of protectionism and is used by governments to regulate trade, with the goal of protecting domestic markets and companies.

Question 6

Gross domestic product (GDP)

Answer 6

The GDP is the total value of everything produced by all the people and companied in a country. The GDP functions as a useful indicator for the economic growth and stability of a country.