Business Quiz #1

Globalization

* The integration of world economies and cultures
* Happens through global communication technologies, foreign direct investment, international trade, migration of people, new forms of transportation, and the flow of money
* This concept has been increasing steadily in the past 50 years.

Interdependence

* When two or more economies of nations rely on each other for products/services
* Changes in one will affect the others.

Capitalism

* An economical and political system in which a country’s trade and industry are controlled by private owners for profit
* The government has minimal control over the use of capital profits.

Outsourcing

When a company chooses to use outside resources (workforce, materials) from a foreign country to operate their business, when they had previously handled operations domestically.

Infrastructure

* The basic physical facilities and organizational structures needed for the operation of society
* Facilities are funded by government taxes (and user fees)
* Is needed for business operations, communication, and transportation of goods.

Specialization

* The basis of global trade
* Countries produce the goods that they are specialized in, and trade with countries that produce other goods that they are not capable of producing

Trade

* The exchange of goods/services for money or other goods/services
* Trade allows the satisfaction of consumers’ needs and wants, provides business with profits.

Imports

Bringing products/services INTO a country

Exports

Selling products/services TO another country

Tariffs

* A tax that a country imparts on imported goods


* This is to protect domestic businesses from foreign competition. 

Labour Intensive

* When a country has a large workforce available to make goods
* Some manufacturing industries are very labour intensive, meaning they need a lot of workers to produce goods
* Robotics (ex self checkouts) have decreased some labour requirements.

Comparative Advantage

* The foundation of specialized trade
* The opportunity cost of producing a good is considered in specialization and trade decisions.

Absolute Advantage

* The ability of a country to produce a product/service more efficiently than other countries

Capital Intensive

* When an industry requires a large investment in machinery, equipment, and real estate in order to start up

Barter

* The exchange of goods or services, in exchange for other goods or services
* Mutual benefit in exchanging goods and services rather than cash

Consumers

* A person who consumes a product or service
* Different from a customer

Producers

* People who make or grow goods and provide services
* Sometimes called workers

Fixed Costs

* Based on time instead of the quantity produced
* Sold by businesses

Variable Cost

* Changes in proportion based on how much a company produces or sells
* Rises as production increases, falls as production decreases

Deficit

* Occurs when money going out (spending) exceeds the money coming in (revenue)
* Typically used in a financial context

Surplus

* The amount of an asset or resource that exceeds the portion that's actively used
* Can be income, profits, capital, or goods

GATT (General Agreement of Tariff and Trade)

* Covers international trade in goods
* Created to regulate world trade

What are the biggest canals for business?

* Suez (Egypt) - connects the Mediterranean Sea and Red Sea
* Panama - connects the Atlantic and Pacific oceans

What does the MUSH sector stand for?

Municipalities, universities, schools, hospitals

What is the hub and spoke method?

* A distribution method that resembles a bicycle wheel
* The business’ main location is the “hub” and the smaller workspaces are the “spokes”
* This method demonstrates how the spokes rely on the hb to distribute
* Helps make companies stronger

What is Rip + Strip?

Mining (Ripping) and Deforestation (Stripping)

What does MNC stand for?

A multinational corporation

What is an MNC?

* A company that has business operations in at least one country other that its home country
* A company that generates at least 25% of its revenue outside of its home country

What is CSCEC’s ranking in Fortune Global 500?

9th place

Who is the CEO of CSCEC?

Yu Tao

Where are CSCEC’s headquarters?

Beijing, China

What industry is CSCEC part of?

The global construction industry

What is CSCEC’s article about?

* Highway built by China State Construction Engineering (CSCE) in Republic of Congo
* Started in 2007, initially opened in 2016, has now been completed and accepted.
* 90% of all imported and exported goods are already using the highway
* Helped the economic development of the Republic of Congo, trade, jobs, etc.

What is CSCEC’s controversy?

* Worked with BML properties, the original owners of the Baha Mar resort in 2015
* They were sued for 2.25 billion dollars for a large case of fraud.
* Allegedly submitted millions of fraudulent dollars to fund the project
* Understaffed the construction site and used inexperienced workers, instead of hiring proper workers.
* Caused the Baha Mar ltd, a subsidiary of BML properties to declare bankruptcy in 2015.