Government, Trade, and Development and Macroeconomics introduction Flashcards

1
Q

What is one of the biggest influencers on the economic portion of the macroenvironmental environment

A

The global trading system

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2
Q

What is one of the biggest political influencers on the macroenvironment?

A

more and more IGO’s with record membership

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3
Q

what are some cultural influences on the macroenviornment?

A

Sports, music, movies, fashion

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4
Q

what are some technological influences on the macroenviornment

A

connectivity and access

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5
Q

what are some demographic influences on the macroenvironment

A

aging and urbanization

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6
Q

why do governments intervene in the macroenvironment

A

Political reasons - diplomacy, national security, retaliation, consumer protection

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7
Q

what is “national competitive advantage”

A

Factor endowments,
demand conditions,
related and supporting industries,
firm strategy and structure,
rivalry

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8
Q

What are factor endowments

A

land, labor, capital, workforce, infrastructure

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9
Q

what are demand conditions

A

large, sophisticated domestic consumer base: innovation friendly environments with a testing ground

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10
Q

what are related and supporting industries

A

local suppliers cluster around producers and add to innovation

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11
Q

firm strategy, structure, rivalry

A

robust competition - national governments can create conditions which facilitate and nurture such conditions

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12
Q

How can governments intervene?

A

Trade Policy - tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, anti-dumping policies, administrative policies

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13
Q

What are tariffs

A

taxes levied on imports

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14
Q

what are subsidies

A

government payments to domestic producers - cash grants, low-interest loans, tax breaks, government orders

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15
Q

what are import quotas

A

government specifies how much of what product can be imported from which countries

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16
Q

voluntary export restraints

A

a quota imposed by the exporting country officially or unofficially

17
Q

what are local content requirements

A

some percentage of a good has to be produced domestically with local raw materials and local labor

18
Q

what are anti-dumping policies

A

punishment for producers who dump and protect domestic producers

19
Q

what are regional economic integration

A

agreements Among geographically proximate countries to reduce/remove tariff and non-tarifff barriers to free flow goods, services, and production

20
Q

What are the levels of economic integration

A

free trade area (FTA)
costume union (CU): FTA+
common market (CM): CU+
economic Union (EU): CM+
Political Union: EU+

21
Q

issues with regional integration

A

Economic enhancement of member states
political issues

Can be painful to the economy and national sovereignty

22
Q

What is the difference between macro and micro economics

A

Macro - ENVIRONMENT
Micro - ECONOMY

23
Q

What are cyclical vs Trend movements

A

Cyclical: peaks and troughs
Trend movements: trends from peak to peak and trough to trough

24
Q

What do they call the top of a peak to the borrom of a trough

A

a contraction

25
what do they call the bottom of a trough to the top of the peak
an expansion
26
Economic conditions can be described in two ways, what are they
Tight or Slack - Labor Market Overheated / underperforming - economy
27
What are the two cyclical economical policies
Monetary policy and fiscal policy
28
what is monetary policy
changes by the federal reserve bank to interest rates that cause an impact on the economy
29
what is fiscal policy
changes in taxes or government spending aimed at impacting the economy
30
what is the difference between nominal and real
real is nominal adjusted for inflation
31
What is GDP
quantity of goods/services sold during a period of time, that were produced in the same period
32
What are components of Aggregate Demand?
GDP = Consumption (largest) + Investment (house and business loans) + Government Spending + Net Exports
33
What is inflation
increase in the general cost of living
34
what is overall inflation
all inflation of all goods/services
35
what is core inflation
Overall inflation minus food and energy
36
What are some of the key price indices
CPI - volatile PCE - more accurate, less volatile GDP Deflator PPI - inflation for businesses
37
What is stagflation
high inflation and high unemployment
38
What is ProMBA 24's "Big 5"
Real GDP, PCE, Unemployment Rate, RFI, CapU
39