Podcast
Questions and Answers
A ______ is a collaboration between two or more companies to control prices of goods or services.
A ______ is a collaboration between two or more companies to control prices of goods or services.
cartel
A Free Standing Company operates business outside of its home ______.
A Free Standing Company operates business outside of its home ______.
country
FD1 involves the acquisition of foreign ______ to gain advantage over the host economy.
FD1 involves the acquisition of foreign ______ to gain advantage over the host economy.
assets
In capitalism, trade is controlled by private owners for ______.
In capitalism, trade is controlled by private owners for ______.
A ______ is part of capitalism, where one party controls the supply and trade.
A ______ is part of capitalism, where one party controls the supply and trade.
Flashcards
What is a cartel?
What is a cartel?
Companies working together to control prices and output of goods or services.
What is a free-standing company?
What is a free-standing company?
A company that operates its business outside of its home country, often sending capital, staff, and expertise abroad.
What is FD1?
What is FD1?
The act of buying foreign assets by a company to gain leverage in the host country's economy.
What is capitalism?
What is capitalism?
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What is a monopoly?
What is a monopoly?
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Study Notes
Cartels
- Collaboration between two or more companies to control prices of goods or services
- Concerned with price and output
- Has its own systematic operation
Free Standing Company
- Operates business outside of the home country
- Transfers start-up capital, skilled personnel, and knowledge abroad
- No vertical integration needed
- Has head offices to distribute finance and manage foreign operations
Foreign Direct Investment (FD1)
- Acquisition of foreign assets
- Aims to gain an advantage over the host economy
- Includes greenfield investment and equity arrangements (including non-equity arrangements)
Capitalism
- Economic and political system where owners control a country's trade for profit
- Monopoly is a part of capitalism (control of supply and trade by one party)
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