Name _________________
UNIT ONE – CHAPTERS 2, 3 & 4
CHAPTER 2.1 – HUMAN RESOURCES

____________ are a firm’s most important resource.

Someone working in HR deals with what specific issues? (list a minimum of 4)

In approximately 60 years the majority of Americans will be __________.

p. 31 states: “The baby bust period has created a shortage of young workers, called “busters.” This
shortage will continue to create serious problems, especially when the boomers retire in large
numbers.” – How can you show this statement to be untrue based on economic changes since the
print of this book?

The Bureau of Labor Statistics reported that the American labor force is approximately _________. Is
this increasing or decreasing? Why?

List some family and/or employee friendly options employers can provide to employees. (minimum 3)
CHAPTER 2.3 - ETHICS
______ refers to standards of moral conduct that individuals or groups set for themselves, defining what behavior
they value as right or wrong.
A code of ethics is:
Nike case study: answer questions 1-4 on page 43
1.
2.
3.
4.
Phillip Morris case study: answer questions 1-4 on page 50
1.
2.
3.
4.
2
CHAPTER 3 – ECONOMIC WANTS

_____________ is the basic economic problem; in that our wants are ____________ and resources are
________________.

List the three Factors of Production:
1.

2.
3.
List the four types of utility:
1.
2.
3.
4

Explain the law of diminishing marginal utility
-when is the opposite true (give an example)

List the three types of economies and provide a one-sentence explanation of each:
1.
2.
3.

In a Capitalistic society one of the basic features is the right to __________ ______________.

In capitalism the incentive for producing goods and services is _______.

On average profit is ___ % of sales, while ____ % goes to covering expenses.

Competition results in what two basic situations?
1.
2.
3
CHAPTER 3 – ECONOMIC WANTS (cont’d)

What are the two main factors that describe economic growth? (p. 70) – list and define each.
1.
2.

What are some basic ways to encourage economic growth? (list min. 4)
1.
2.
3.
4.

What affect does inflation have on the purchasing power of a dollar?

What is an ideal inflation percentage range?

What are the 4 phases of the business cycle? –which phase is the best? The worst?

1.
2.
3.
4.
CASE 3-1 Read case on p. 78 and answer questions 1-4
1.
2.
3.
4.
4
CHAPTER 4 - INTERNATIONAL BUSINESS

MNC stands for ________________________ _________________, which is a firm that owns or
controls production or service in more than one _______________.

Sometimes it can be very difficult to determine if a product is foreign or domestic but if _____ % of a
product is made in the U.S. it can be labeled “ _________ ____ ________________”

Firms enter international business for many reasons, but main reason is __________. Three other
reasons are:

Selling products or services to buyers in another country is known as _____________.

____________ refers to buying goods and services made in a foreign country.

Examples (circle import or export based on first company/country listed)
1.
Import or Export: Boeing (U.S.) makes and sells planes to Qantas (Australia)
2.
Import or Export: CDW (U.S.) purchases Acer (Taiwan) laptops.
3.
Import or Export: Finish Line (U.S.) purchases Adidas (Germany) shoes for their retail stores.
4.
Import or Export: BMW (Germany) manufactures and sells cars to Perillo BMW (U.S.)
Government policies on International Business (p. 91):

Tariffs: _____ on ___________ goods
-Example: The U.S. places a 10% tariff on jeans made in Colombia so a $30 pair of jeans will rise to: $____.

Dumping refers to selling goods in a _______ market at a price that is below _______ or below what it
charges in its ________ country.

A quota limits:
o
Quotas are designed to protect the __________ ________ of domestic products.
o
Circle one: both tariffs and quotes increase/decrease the price of foreign goods to consumers.
5
Currency Values

The ________ _____ is the value of one country’s currency expressed in the currency of another
country.
o Example: $1 US = ¥ 125 (Japanese Yen). A 12,500 yen camera in Japan would cost $_____ in
the U.S. If the exchange rate changes to ¥100 to the dollar the camera will now cost $_____ in
the U.S.
o Example : $1 US = 0.70 € (Euro). A €50 pair of jeans in Germany would cost $_____ in the U.S.
If the exchange rate changes to $1U.S. to €0.80 then the jeans will now cost $ _____ in the U.S.

Research the 5 currencies of other countries and compare to the U.S. (finance.yahoo.com)
1. $1 U.S. Dollar =
2. $1 U.S. Dollar =
3. $1 U.S. Dollar =
4. $1 U.S. Dollar =
5. $1 U.S. Dollar =
List the following world currencies:
Canada:
Australia:
Italy:
Germany:
Italy:
Mexico:
Brazil:
India:
Netherlands:
Japan:
China:
U.K.:
South Africa:
Argentina:
Switzerland:

A trading bloc is:

Two examples of trading blocs are:

1.
2.
Member countries:
Member countries:
The WTO is an:
-Trade agreements negotiated under the authority of the WTO have led to _________ in tariffs.
6

The top five countries with which the U.S. trades with are (p. 84):

Trade among nations in the ________ _____ have emerged as big trading partners, in countries such
as(p. 83):

The top five countries investing in the U.S. are:

The top five countries for American Investors are:
o
Why would these lists be different?

Comparative Advantage (p. 95) theory states:

Balance of Trade
o Imports exceed Exports = Trade __________ (negative - more money going out)
o Exports exceed Imports = Trade __________ (positive + more money coming in)
o

Circle one: over recent decades the U.S. trade deficit has increased/decreased.
Balance of Payments is:
Chapter 4 Questions:
-On a separate sheet of paper answer questions 1-24 and 26 on pages 101-103.