Why Should Business Managers Be Familiar with Laws That Regulate

question 2

Multiple Choice

Why should business managers be familiar with laws that regulate business practices between nations?

• A)Businesses are required to know the laws and to become WTO members to have Internet websites.
• B)NAFTA requires registered businesses to understand and comply with international law.
• C)GATT Mandates that U.S.organizations know the laws in the United States and in 150 other member countries in order to incorporate.
• D)Advances in trade and technology have made trade with other countries easy,but companies must comply with local laws
• E)Businesses may meet foreigners and should be familiar with their customs to foster positive business relationships

Identify different forms of business organizations and their characteristics.

Grasp the concept of international trade and the reasons behind it.

Understand the consequences of trade restrictions on economies.

Recognize the importance of the balance of payments and foreign exchange markets in international economics.

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Definitions:

Money Supply

The total amount of monetary assets available within an economy at a specific time, including cash, coins, and balances held in bank accounts.

Price Level

The broad-based average price across the spectrum of goods and services in the economy.

Real Income

Income of individuals or nations adjusted for inflation, reflecting the actual purchasing power.

Velocity of Money

The rate at which money is exchanged from one transaction to another and used to purchase goods and services, reflecting the economy's activity level.