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BBB4M Exam Review Questions with Complete Solutions
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BBB4M Exam Review Questions with Complete Solutions
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BBB4M Exam Review Questions withComplete Solutions
Private Sector - Answer-Chapter 1-2: The part of the economy that is free of
government control at any level (except for applicable regulations)
Private Sector Investments - Answer-Chapter 1-2: The private sector's commitment of
money or capital to projects
Public Sector - Answer-Chapter 1-2: The part of the economy that is under direct control
of the government at any level
Public Sector Investments - Answer-Chapter 1-2: The public sector's commitment of
money or capital to projects in order to gain financial return
Tariffs - Answer-Chapter 1-2: Customs duty on merchandise imports, the purpose of
which is to give a price advantage to similar locally produced goods or to raise revenues
for the country
Primary Industries - Answer-Chapter 1-2: One of Canada's Major Industries: Industries
that are based on raw materials from nature - such as in agriculture, fishing and
trapping, forestry and logging, and energy and mining
Manufacturing Industries - Answer-Chapter 1-2: One of Canada's Major Industries:
Industries that include both the processing and fabrication sectors - such as wheat
milling
Service Industries - Answer-Chapter 1-2: One of Canada's Major industries: industries
which sells non-tangible items which is often provided by someone who is trained - such
as doctors, engineers
Capital - Answer-Chapter 3-4: Money or other assets that are available for investment
purposes
Productivity - Answer-Chapter 3-4: The amount of work accomplished in a unit of time
using the factors of production
ISO - Answer-Chapter 3-4: International Organization for Standardization: A non-
governmental organization devoted to developing voluntary standards of quality
management and quality assurance
Economies of Scale - Answer-Chapter 3-4: The tendency of the cost per item to go
down when items are bought or produced in large quantities
, GDP - Answer-Chapter 3-4: Gross Domestic Product: The total value of all goods and
services produced in a country during a certain amount of time
Opportunity Cost - Answer-Chapter 3-4: Cost and potential benefit of an opportunity that
is deferred or sacrificed in order to act on another opportunity
Rationalization - Answer-Chapter 3-4: The process used by an organization or company
to change its structure, product line, or production process to make it more efficient,
productive, and competitive
Multinational Company (MNC) - Answer-Chapter 5-6: A business enterprise that
conducts business in several countries
NAFTA - Answer-Chapter 5-6: North American Free Trade: An arrangement amongst
Canada, the United States, and Mexico that allows free trade amongst the tree
countries
FTAA - Answer-Chapter 5-6: Free Trade Area of the Americas: Integration of
economies of the Western Hemisphere into a single free trade zone
Polycentric - Answer-Chapter 5-6: MNC that understands the market differences from
country to country and gives its foreign markets greater autonomy - such as 3M
Corporations
Ethnocentric - Answer-Chapter 5-6: MNC that operates internationally, in some way as
it does at home. Has tight control over foreign operations from head office - such as
Coca-Cola Company
Geocentric - Answer-Chapter 5-6: MNC that takes a multinational approach and seeks
total integration of its global operations. Polycentric & Ethnocentric MNC's tend to
describe North American and European companies. A truly global MNC is hard to find -
possible examples Colgate-Palmolive
World Bank - Answer-Chapter 5-6: Has access to world funding during crisis. Goal is to
end global poverty
G20 - Answer-Chapter 5-6: 20 of the world's wealthiest and finance ministers gather to
address global issues
IMF - Answer-Chapter 5-6: International Monetary Fund: Provides emergency funding
Landed Cost - Answer-Chapter 7-8: Total cost of a product including all transportation,
handling, tariff, brokerage, currency exchange rates, and import charges
Boycott - Answer-Chapter 7-8: An organized refusal to buy (a company's or country's)
products or services
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