Intro to Business Honors

Arguments for Free Trade

Lower Prices, Higher Quality, More Selection

Arguments for Trade Protectionism

Protecting Jobs, Responding to Unfair Trade and Business Practices

Difference between imports and exports

Balance of Trade

What is the U.S. Balance of Trade?

Trade Deficit with the world

A form of outsourcing where the company hires another company to manufacture its products

Contract Manufacturing

Selling a product overseas below its production cost and harming local industry

Dumping

A prohibition on trade with a country

Embargo

How much of one currency you get for another

Exchange Rate

The absence of restrictions on trade

Free Trade

A limit on the amount of merchandise that may be imported from a country

Import Quota

Allowing another company to use patents or trademarks for a fee

Licensing

When two companies own and operate a business together

Joint Venture

An International Organization that has funded countries’ bailouts

IMF

A very large corporation with operations worldwide

Multinational Corporation

National Savings Accounts of a country

Sovereign Wealth Funds

What are te 3 countries in the USMCA Agreement

US, Mexico, Canada

A tax on imports

Tariff

When a country imports more than it exports

Trade Deficit

When a country exports more than it imports

Trade Surplus

Dollar Effect on Imports

Import follows dollar, export opposite

Countries in the European Union using the Euro as their currency

Eurozone

A political and economic union of member states that are located in Europe

European Union (EU)

An economic group of countries in South America

Mercosur

What are the two largest members of Mercosur?

Argentina and Brazil

A political and economic group of countries in Southeast Asia

ASEAN

Sets the rules for trade between nations and resolve trade disputes

World Trade Organization (WTO)

The Branch of Government with the President and Agencies reporting to the President

Executive Branch

Branch of Government with Congress

Legislative Branch

Branch of Government with U.S. Supreme Court and Federal Courts

Judiciary (Judicial Branch)

What are the President’s checks on the Judicial Branch?

Appoints Federal Judges

What are the President’s checks on the Legislative Branch?

Vetoing legislation and bypassing Congress with Executive Orders

What are Congress’ checks on the President?

Impeachment and approving cabinet appointments

What are Congress’ checks on the Judicial Branch?

Confirming appointment of judges

What is the Judicial Branch’s checks overall?

Declare any act of the President or Congress unconstitutional

Supreme Court Case that protects employees against discrimination because of their sexual or gender identity

Bostock v. Clayton County, Georgia (2020)

Supreme Court Case that ended prohibiting of corporations making contributions directly to candidates

Citizens United v. Federal Election Commission

A legally enforceable agreement between two or more parties

Contract

What are the 5 conditions for an enforceable contract?

An offer must be made and voluntarily accepted, both parties must give consideration and must be competent, the contract must be legal and in proper form

The requirement that both parties to a contract must give something of value

Consideration

What are the possible consequences of Breach of Contract (when a contract is violated)?

Specific performance, payment of damages, discharge of obligation

A civil wrong that causes injury to another person

Tort

Behavior that causes unintentional harm or injury

Negligence

What is the usual remedy for a tort?

Monetary Compensation

A company’s responsibility for harm caused by the products it makes or sells

Product Liability

What are 3 examples of Intellectual Property?

Patents, Copyrights, Trademarks

Gives inventors exclusive rights to their inventions for 20 years

Patent

Protects a creator’s rights to content such a as books, movies, video games, and music

Copyright

Protects a brand name, logo, a phrase, or an image

Trademark

What is some important informatin about Trademarks?

Trademarks are country specific and does not expire

The Financial Reform Legislation passed in 2010 as a response to the financial crisis of 2008 that includes the creation of the Consumer Financial Protection Bureau

Dodd-Frank Act

The repeal of governmental regulation of a sector for the economy

Deregulation

What are the 3 basic forms of business ownership?

Sole Proprietorship, Partnership, and Corporation

1 Owner- Operator with Unlimited Liability

Sole Proprietorship

2 or more owners with Unlimited liability

Partnership

Separate entity with authority and liability distinct from owners, offer limited liability

Corporation

Advantages of Sole Proprietorship

No Special Taxes, Keep all Profits

Disadvantages of Sole Proprietorship

Unlimited Liability, Limited financial resources

Advantages of Partnerships

No Special Taxes, More Financial Resources

Disadvantages of Partnships

Unlimited Liability, Division of Profits

Advantages of Corporations

Limited Liability, Easier to Raise Money

Disadvantages of Corporations

Double Taxation, Initial Cost

What are 4 types of corporations?

private, public, professional, non-profit

How are S Corporations and Limited Liability COmpanies (LLCs) different than normal corporations?

They are taxed like a partnership and have restrictions and rules

What is the difference etween S Corporations and LLC’s?

LLCs have fewer eligibility requirements and offer liability protection

Two firms become one

Merger

Joins two companies in different stages of business

Vertical Merger

One firm buys another

Acquisition

Companies in the same industry combine with each other

Horizontal Merger

Unrelated companies join

Conglomerate Merger

Publicly owned corporation becomes privately owned

Taking a firm private

Business owned and controlled by its users

Cooperatives

what are the 4 reasons businesses are started?

Opportunity, Profit, Independence, Challenge

What are the 4 causes of business failure?

Undercapitalization, scale, poor management, the business cycle

Administrative agency that protects human health and the environment by enforcing pollution and safety regulations.

Environmental Protection Agency (EPA)

Administrative agency that regulates the stock market and protects investors from fraud and unfair practices.

Securities and Exchange Commission

Administrative agency that ensures the safety and effectiveness of food, drugs, and medical products in the U.S.

Food and Drug Administration (FDA)

Administrative agency that oversees all aspects of civil aviation, including flight safety and air traffic control

Federal Aviation Administration (FAA)

Administrative agency that regulates radio, TV, internet, and other communication systems in the U.S.

Federal Communications Commission (FCC)