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Question
Which of the following is a reason that command economies tend to stagnate?
A) Costs are tightly controlled and business are forced to be efficient rather than dynamic and innovative.
B) The abolition of private ownership means there is no incentive for individuals and no competition.
C) All economic resources are mobilized for the public good.
D) Individuals in command economy countries lack the skills to be innovative.
Answer
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Related questions
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Describe the three exchange rates that can be used to translate foreign currencies into the corporate currency in setting budgets and in the subsequent tracking of performance that Lessard and Lorange pointed out.
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⊚ true
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A) reduce transaction costs between subsidiaries.
B) avail tax credit from governments.
C) establish a tax treaty among multiple countries.
D) reduce the fixed costs of establishing a subsidiary.
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By pooling cash resources centrally, firms can
A) better handle short-term cash needs of subsidiaries.
B) increase liquidity of independent subsidiaries.
C) reduce the total size of the cash pool it must hold in liquid accounts.
D) avoid government-imposed restrictions on capital flows.
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Pooling the cash of all the subsidiaries centrally
A) lowers the interest rate earned.
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A) cash flow
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B) penalizes distant cash flows too heavily.
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B) Trade diversion
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A) enables participants to achieve gains from the free flow of trade.
B) enables participants to achieve gains from the free flow of investment.
C) allows countries to specialize in the production of goods and services that they can produce most efficiently.
D) reduces the potential for violent conflict and war.
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_____ eliminates trade barriers between member nations, adopts a common external policy, and permits factors of production to move freely between member countries but it also requires a common currency, harmonization of members tax rates, and a common monetary and fiscal policy.
A) A free trade area
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⊚ true
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A) Treaty of Rome
B) Maastricht Treaty
C) Treaty of Lisbon
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B) Mercosur.
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⊚ true
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