FP2 - Unit 4 Review

Matthias received his education and degree from a university in London. He was then quickly hired away by an Italian auto manufacturer. What negative effect of globalization will England realize as a result of Matthias's action?

• A. unequal economic growth

• B. brain drain

• C. nationalism

• D. multiculturalism

The unemployment rate in the last quarter jumps to 5.6% in Jeremy's country. How does this change affect the financial markets?

• The market is unable to handle such unemployment rates and will likely crash.

• Securities prices would fall as fewer people have the money to invest due to lost wages.

• People would begin to invest in more start-up companies to try to make up for lost wages.

• There would be no change in the financial markets due to the higher unemployment.

Which is a service that investment banks typically provide for their clients?

• providing personal loans

• establishing deposit accounts

• facilitating business mergers

• processing home mortgages

Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as:

• cultural intelligence

• External environment

• demographics

• competition

Swedish engineers influencing ideas in the United States is an example of which advantage of globalization?

• sharing of ideas

• variety of products

• increased competition

Individuals who take advantage of price differences to buy and sell securities from different markets are said to be using:

• arbitrage

• bankruptcy

• a yield curve

• business cycles

How does the ability to travel more freely contribute to globalization?

• By increasing cultural exchange and economic integration

• Reducing political barriers

• By escalating competition between business

• By promoting a sense of nationalism.

Outside factors that affect a business, such as political representatives and social trends, are considered to be:

• cyclical

• dynamic

Volcano Fire, an electronic cigarette company, spends a large part of its revenues contacting state and federal legislators, trying to influence industry laws and policies. This is known as:

• A. lobbying

• B. budgeting

• C. political scam

• D. self-promotion

Which statement regarding the merger of multiple firms is true?

• More consumer loans were available from the smaller, individual firms than the larger one.

• A merger usually makes it easier to determine which supervisory agency should oversee the new larger company.

• More consumer loans may be available from the new larger firm than the smaller, individual ones.