Which of the following resolves the problem of making ...

[genevieve1028]

Which of the following resolves the problem of making international payments and facilitates international investment and borrowing among firms, banks, and governments?
 
  A) foreign exchange
  B) barter
  C) capital flight
  D) buyback

Question 2

Discuss the economic and business implications of religion.
 
  What will be an ideal response?

[shewald78]

Answer to Question 1

A

Answer to Question 2

Religion appears to have an effect on economic and business activities. For instance, Islam encourages free trade through rules that prohibit restraints on market-based exchange, such as monopolies and price fixing. Islam encourages the free flow of information that facilitates efficient demand and supply. The Qur'an condemns charging interest for money loaned. Thus, banks in Islamic countries have devised methods for financing debt without violating Sharia law. The Qur'an prohibits drinking alcohol, gambling, and showing too much skin. These restrictions affect firms that deal in alcoholic beverages, resorts, entertainment, and women's clothing. Many multinational firms are reaching out to Muslim communities. Nokia launched a mobile phone application that shows Muslims the direction toward Mecca, Islam's holiest site, when they pray. Heineken, the Dutch brewing giant, rolled out the nonalcoholic malt drink Fayrouz for the Islamic market. In general, MNEs are allowed to operate as long as they abide by Sharia law, do not exploit people, and earn profits fairly
Religious affiliations help create bonds of trust and shared commitment, which facilitate lending and trade. Religion can boost GDP in a country by reducing corruption, and by increasing respect for law and order. Religion that promotes moral values should help foster successful economic systems. Conversely, a lack of ethical values tends to coincide with economic decay. A lawless society cannot sustain normal business activities for long. It is noteworthy, however, that some societies with strong religious values-for example, most Middle Eastern countries and their embrace of Islam, or southern Africa and in many Christian devotees-have not produced high living standards for their citizens. This implies religion alone is insufficient to support economic development. Other factors, such as strong private property rights, political and economic freedom, and an entrepreneurial spirit, are also important.