International Environment of business
International trade
International trade
Set of flashcards Details
| Flashcards | 99 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 09.10.2017 / 10.04.2018 |
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what are the 4 techniques for managing risk?
Avoidance, loss prevention, transfer, self-funding
what are the basic characteristics of insurance?
Insurer --> insurance policy ..> insurance customer
what are the 3 main challenges of insurance
Moral hazard, fraudulant claims, inflated claims
what are the benefits of insurance to society?
Reduction of worry and fear, sourxe of investment funds, loss prevention, enhancement of credit, attractive world of employment,
what are the challenges of the insurance sector in the developed world?
Digitization, changing customer behavior, tighter regulatory requirements, saturated insurance markets, predatory competition, emergin risks (cyber, hurricane season etc. )
what are the 4 stages of insurance?
dormant, early, sustained growth, mature
Describe the dormant stage
political stability, property rights, freedom of enterprise, contract enforcement (afghanistan, iraq)
Describe the early growth stage
low income and wealth, insufficient scale of insurable risk, macroeconomic instability, market restricitons (bolivia, egypt, mongolia)>
Describe the sustained growth stage
Income, scale, financial sector development, enforcement, judicial efficiency and transparancy (peru, india, el salvador)
what is a micro insurance?
Insurance for low-income people. Only a small fee is payed and itr allows them to recover from a big shocks. It protects low income families to fall back into poverty and to take risks (farmer grows crops with bigger risks but also bigger risks because he is protected when there is a bad harvest)
Why microinsurance?
Low income communities that are shut out of financial services like saveing account or mortgages because they cant afford premiums or fees
what are the classical factors of production?
Y= AF (N, L, K, H)
Output=n Technology (Land, Labor, Capital, Human resource)
what are additional productivity factors next to the classical ones?
Innovation + Entrepeneurship + Institutions and Policy
Why do Instituitons and policy play a crucial roole in providing the factors of production and productivity?
By providing Infrastructure (education, health, access to water, sanitation, transportation, energy, information and communication technology, capital) and by defining the rule of the game (protection of IP, rainforest)
What are the 5 elements that conrtibute to the possibility of and incentives for innovation and productive entrepreneurship?
1. Private ownership
2. Availability of production factors
3. economic freedom
4. legal protection of property rights
5. political stability, rule of law, and regulative quality
6. (democracy)
How does the US economy compare to the chinese economy?
Describe the 5 generations of chinas long march to global competitiveness
First Generation - Mao Zedong (1949-1976)--> failure of great leap forward, horrid death tooll of over 20 million people dying of hunger, cultural revolution--> 7 million people to working camps for reeducation
Second Generations - Deng Xiaoping (1978-1989) -> economic liberalization, global trade as the way out of national poverty, political suppression (tiananmen-incident)
Third Generation: Jiang Zemin (1989-2002)--> massive economic growth since 1990's,
Fourth Generation: Hu Jintao (2002-2012)--> even more export driven growth, decline of poverty rate, rise in scientific field$
Fifth Generation: Xi Jingping (2012-today)--> financing major public infrastructure deals in southeast Asia, Africa, Latin America (more loans than world bank)
what is "made in China 2025"
China's industrial masterplan: turn the country into a "manufacturing superpower" over the coming decades (creation of publicly and privatelyfunden innovation centers, more private and public research subsidies, large and low-interest loans from state-owned investment funds, assistance in buying foreign competitors)--> great business opportunities for foreign firms because of enormous increase of smart manufacturing products--> in long term challenge for the economic primacy of the current leading economies and international corporations
what is THE most important mega trend of the last decade?
the rise of CHINA
