BAC-6-POINTERS-MIDTERM-COVERAGE PDF

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--Chapter 3\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- =================================================================================================== 1. Classical Theories a. Absolute Advantage ------------------ Comparative Advantag...

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--Chapter 3\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- =================================================================================================== 1. Classical Theories a. Absolute Advantage ------------------ Comparative Advantage --------------------- 2. Heckscher-Ohlin Theory 3. New Trade Theory 4. Gravity Model of Trade 5. Porter\'s Diamond Model 6. The Role of Institutions 7. Trade and Economic Growth 8. Dynamic Models of Trade 9. Trade Policy Models 1. Definition of Exchange Rates 2. Impact on Export and Import Prices 3. Competitiveness in Global Markets 4. Inflation and Purchasing Power 5. Investor Confidence and Capital Flows 6. Risk and Uncertainty 7. Policy Implications 8. Global Economic Interdependence 1. Comparative Advantage 2. Cost of Labor 3. Technological Advancements 4. Globalization and Trade Liberalization 5. Market Demand 6. Investment and Capital Flows 7. Infrastructure Development 8. Government Policies and Incentives 9. Cultural and Social Factors 10. Environmental Factors 1. Resource Availability 2. Technological Advancements 3. Market Demand 4. Government Policies 5. Globalization Trade and Investment: Increased global trade and foreign investment open new markets and sources of capital, driving economic growth. Cultural Exchange: Exposure to different cultures and ideas can lead to innovation and new business practices. 1. Economic Growth 2. Income Distribution 3. Environmental Impact 4. Labor Market Changes 5. Cultural and Social Changes 1. Structural Changes 2. Institutional Changes 3. Crisis and Recovery 1. Access to Ports and Trade Routes 2. Climate and Environmental Factors 1. Trade Policies and Tariffs 2. Regulatory Standards and Compliance 3. Political Stability and Governance 4. Bilateral and Multilateral Agreements 5. Economic Sanctions and Trade Embargoes 1. Economic Growth and Development 2. Labor Market Consequences 3. Cultural Impacts 4. Environmental Consequences 5. Infrastructure Development 6. Consumer Choices and Prices 7. Policy Responses and Regulation 1. **Equity Ownership**: Stockholders have a claim on the company's assets and earnings. This can include voting 2. **Types of Stocks**: - **Common Stock**: Represents ownership in a company and entitles shareholders to vote on corporate matters and receive dividends. - **Preferred Stock**: Typically does not have voting rights but provides fixed dividends and a higher claim on assets in the event of liquidation. 3. **Dividends**: Many companies pay dividends to shareholders, providing a return on investment. Dividends can be regular payments or special distributions. 4. **Market Price**: Stocks are traded on exchanges, and their prices fluctuate based on supply and demand, company performance, and market conditions. 1. **Registered Debentures**: These are recorded in the name of the holder, and interest payments are sent directly to the registered owner. They can be easily transferred between investors. 2. **Bearer Debentures**: These do not have the owner\'s name recorded and can be transferred simply by handing them over to another party. Interest is paid to whoever presents the coupon attached to the debenture. 3. **Convertible Debentures**: These can be converted into equity shares of the issuing company at a predetermined price, offering potential upside for investors if the company performs well. 4. **Non-Convertible Debentures**: These cannot be converted into equity shares and typically offer higher interest rates than convertible debentures. 5. **Zero-Coupon Debentures**: These do not pay periodic interest but are issued at a discount to their face value. Investors receive the face value upon maturity, with the difference representing the interest earned.