International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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What information would one use to determine the type of economic system that a country has? (Multiple choice)
1. The information needed would be the rate of inflation and the gross domestic product figures.
2. The information needed would be the breakdown on who owns the business in the country and how much control the government has upon business regulations, taxes, etc.
3. The information needed would be the gross domestic products figures and consumer price index figures.
Discuss problems about “Income tax rate is too high” in a country? What solutions can be done to solve it?
1.
Why do military costs make up such a large portion of state GDP?
Group of answer choices
Security concerns. States fear that they'll be invaded and taken over, so they spend inordinate amounts of money to ensure that won't happen
States have obligations to the UN to have certain percentages of their GDP be in military expenditures
States need to invest in military equipment for jobs at home, since most states have domestic arms manufacturers that provide equipment to all their forces
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