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 ______.
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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.
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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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Description
This quiz explores key concepts in economics, focusing on cartels, foreign direct investment, and the principles of capitalism. Learn how companies collaborate to influence prices and how businesses operate beyond their home countries. Test your knowledge of these fundamental economic structures.
