U3 Political and Economic Factors Flashcards
1
Q
Government Role in International
Trade
A
- trade policies/regulations
- Assists Canadian exporters
internationally - Matches Canadian companies with
international firms - educates Canadian companies to
changing international business
environment
2
Q
Political Risk
A
Refers to political decisions, conditions, events, or activities in a country that affect the business climate
3
Q
political risk investor losses
A
- Financial loss
- time delays
- technical breakdown
- loss of reputation
- loss of market share
4
Q
Types of Political Systems
A
- democracy
- totalitarian
- mixed economy
5
Q
democracy
A
Government for and by people
6
Q
Totalitarian
A
- Tend to centralize power with assistance of military
- Dictatorship, no elective representatives
7
Q
Mixed Economy
A
Characteristics of both, is more realistic worldwide
8
Q
Political Interdependence
A
- Countries exercise decisions outside ‘norm’
- Leads to backlash
- Trade Wars
- Economic Imperialism
9
Q
trade wars
A
governments act aggressively to promote their own products
10
Q
Economic Imperialism
A
Stronger companies/countries exploit weaker countries
