Chapter 1
Information
One company controls an industry
Monopoly
Buying products from another country
Importing
Moral standards in society otherwise known as right and wrong
Ethics
When a few companies run an entire industry
Oligopoly
Someone who risks everything to start a business
Entrepreneur
This is a free market economy where individuals own the property and is based on supply and demand
Capitalism
Selling a product in another country for prices cheaper than you could charge in your own country
Dumping
When a company takes a social or political stance
Corporate Policy
This type of ethics is based on hiring the right people who share your same values.
Integrity
The point at which supply meets demand
Equilibrium Price
What measures inflation?
CPI
Strategy in which a firm allows a foreign company to produce its product in exchange for a fee
Licensing
This type of ethics is fear based, do it or else.
Compliance
The exchange of goods with no money involved
Bartering
Anyone that stands to gain or lose from the decisions a company makes
Stakeholder
What two things does the Federal Reserve control?
Interest rates and money supply
Countries should produce the goods they make most efficiently and buy from countries the goods they make most efficiently
Comparative Advantage
This is when a company does more than just donate money to a cause
Social Initiatives
Movement of goods and services with no barriers
Free trade
Give me the five factors of production
Land, Labor, Knowledge, Capital, and Entrepreneurship
The total amount of goods and services produced in a country in a given year
GDP
Two companies that team up to make a new product
Joint Venture
An evaluation of how responsible a company is towards society
Social audit
Investors use private company information to gain financially
Insider Trading