2024 AFM 131 Final Exam New Latest Exam Best
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Questions and Answers
Balance of payments - ans -difference between money coming into a country (from
exports) and money leaving the country (for imports), PLUS money flows from tourism,
foreign aid, military expenditures and foreign investment
Theory of comparative advantage
- ans -- Countries export goods/services that they produce most effectively and
efficiently
- Countries import goods/services that they cannot produce as effectively or efficiently
Job simulation - ans -the use of equipment that duplicates job conditions and tasks so
trainees can learn skills before attempting them on the job
Mentor - ans -an experienced employee who supervises, coaches, and guides lower-
level employees by introducing them to the right people and generally being their
organizational sponsor
360-degree review - ans -management gathers opinions from all around the employee,
including those under, above, and on the same level, to get an accurate,
comprehensive idea of the worker's abilities
Reverse discrimination - ans -Discriminating against members of a dominant or majority
group (e.g. whites or males) usually as a result of policies designed to correct previous
discrimination against minority or disadvantaged groups.
Insider trading - ans -an unethical activity in which insiders use private company
information to further their own fortunes or those of their family and friends Free trade -
ans -moving goods/services between countries without political or economic obstruction
Theory of absolute advantage - ans -monopoly on producing or can produce more
efficiently than all other countries
Canada Border Services Agency - ans -- Protect Canadian citizens and the economy
- Enforcement of goods coming into Canada
Licensing - ans -a company (licensor) allows a foreign company (licensee) to produce
its product for a fee (a royalty)
,Franchising - ans -selling the rights to use an established business name and sell a
product/service to others in a given territory in a specified manner
Contract manufacturing - ans -foreign company manufactures goods to which a
domestic company then attaches its own brand name or trademark
Joint venture - ans -a partnership where two or more companies join to undertake a
major project
Strategic alliance - ans -A long-term partnership between two or more companies
established to help each company build competitive market advantages.
Foreign direct investment - ans -buying permanent property in a foreign market
Trade protectionism - ans -the use of government regulations to limit the import of
goods and services
Competition Bureau - ans -responsible for the administration and enforcement of a
number of acts designed to protect consumers and promote fair competition
Competition Act
- ans -- Ensures mergers of large corporations will not restrict competition
- Fair competition exists among businesses
- Provides consumers with competitive prices and product choices
Health Canada
- ans -Responsible for:
- Establishing standards for the safety and nutritional quality of all foods sold in Canada
- Regulations related to food packaging, labelling and advertising
Food and Drugs Act
- ans -- Enforcement is done by the Canadian Food Inspection Agency
- Monitors both exports (to maintain Canada's reputation internationally) and imports
Tariffs - ans -taxes on imports
Import quotas - ans -limit number of products a nation can import
Embargo - ans -complete ban on the import/export of a product (or all trade) with a
country
Non-tariff barriers - ans -include restrictive standards that detail how a product must be
sold in the country
The World Bank - ans -- Autonomous United Nations agency concerned with developing
infrastructure in less-developed countries
,- Borrows money from prosperous countries to lend to less-developed countries
International Monetary Fund - ans -- International bank, supported by its 189 member
countries
- Makes short term loans to countries experiencing problems with their balance of trade
North American Free Trade Agreement
- ans -Free trade area among Canada, Mexico, and the United States
National policy - ans -- High tariffs
- Encourage east to west trade
Canada's mixed economy
- ans -- Economic system in which some allocation of resources is made by the market
and some by the government
- Mix of capitalism and socialism
Crown corporations - ans -companies owned by the federal or provincial government
Privatization - ans -selling publicly-owned corporations
Deregulation - ans -withdrawal of laws and regulations that hinder competition
Fiscal policy - ans -keeping the economy stable through increases/decreases in taxes
and government spending
Federal budget - ans -a comprehensive report that reveals government financial policies
for the coming year
Tax - ans -collected by federal, provincial and municipal governments
National debt - ans -accumulation of government surpluses and deficits over time
Deficit - ans -Government spending > Taxes collected
Surplus - ans -Government spending < Taxes collected
Monetary policy - ans -The management of the money supply and interest rates
Financial aid - ans -- Grants, loans, consulting advice
- Help industries and companies
Equalization program - ans -Transfer payments
Innovation, Science and Economic Development Canada - ans -- Protecting consumers
through regulations
, - Help small businesses get started
Global Affairs Canada
- ans -- Support companies with exporting and foreign-investment activities
- Conduct trade missions
Industrial policy - ans -comprehensive and coordinated government plan to guide and
revitalize the economy
Entrepreneurship - ans -accepting the challenge of starting/running a business
Micro-enterprises - ans -1 to 4 employees
Micropreneurs - ans -owner of micro-enterprises
Intrapreneurs - ans -creative people who work as entrepreneurs within corporations
Market - ans -people with unsatisfied wants and needs who have both the resources
and the willingness to buy
Crowdfunding - ans -raising money from a large number of people online
Marketing
- ans -how to plan and present products/services to build effective customer
relationships
Production era
- ans -- Limited production possibilities
- Produce as much as possible to meet demand
Sales era
- ans -- Advancements in production processes
- Production capacity often exceeded immediate market demand
- Focus shifted to selling and advertising
Marketing concept era
- ans -A three-part business philosophy: (1) a customer orientation, (2) a service
orientation, and (3) a profit orientation.
Market orientation era
- ans -- Even more focused on the customer
- Customer relationship management (CRM)
Social media marketing era - ans -consumers engage with organization and other
consumers to share information, opinion, knowledge and interests
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