Intro to Business Chapter 3
What is a free-trade zone?
A selected area where products can be imported duty-free and then stored, assembled, or used in manufacturing.
Which of the following tends to discourage international trade?
An embargo
The difference between a country's total payments to other countries and its total receipts from other countries
Balance of payments
The difference between the amount of money that comes into a country and the amount that goes out is called..?
Balance of payments
The difference between a country's total exports and total imports is called the..?
Balance of trade
The difference between a country's total exports and total imports of goods
Balance of trade
Danielle's company is expanding into Korea and has asked her to research the language, customs, and values of the Korean people. Which aspect of the international business environment is Danielle investigating?
Cultural influences
T/F A joint venture is an agreement among two or more countries to remove duties and trade barriers on products traded among them
False
T/F Countries that devote most of their economies to agriculture usually provide more and better goods and services for their citizens
False
T/F Domestic business refers to business activities needed for creating, shipping, and selling goods across national borders.
False
T/F Franchising is selling the right to use a trademark or brand name for a fee or royalty
False
The amount a country owes to other countries is called..?
Foreign debt
A country in which a multinational company conducts business activities is called the..?
Home country
Goods and services bought from another country
Imports
A nation's transportation, communication, and utility systems
Infrastructure
________ rates are the cost of using someone else's money
Interest
This group helps maintain an orderly system of world exchange rates
International Monetary Fund (IMF)
An agreement between two or more companies from different countries to share a business project
Joint venture
Selling the right to use some intangible property for a fee or royalty is called..?
Licensing
An organization that conducts business in several countries
Multinational company (MNC)
A limit on the quantity of a product that may be imported or exported within a given period
Quota
A limit that a government places on the quantity of a product that may be exported or imported during a given period is called a..?
Quota
Which of the following is NOT a goal of the World Trade Organization?
Strengthening import quotas
A tax that a government places on certain imported products
Tariff
A tax that a government places on certain imported products is called..?
Tariff
Licensing..?
Usually involves selling a product or service
A trade _____ is a restriction to free trade
barrier
The situation in which a country specializes in the production of a good or service at which it is relative more efficient is called ______ advantage
comparative
The accepted behaviors, customs, and values of a society are referred to as _____
culture
Foreign ____________________ is the amount a country owes to other countries
debt
If a nation imports more than it exports, it has a trade ______
deficit
When a government completely stops the import or export of a product, it is called a(n) ______
embargo
The _____ rate is the value of a currency in one country compared with the value in another
exchange
International business is frequently referred to as world or _____ trade
foreign
A(n) _______ is the right to use a company name or business process in a specific way
franchise
Items bought from other countries are called _____
imports
A nation's transportation, communication, and utility systems is referred to as its _______
infrastructure
A(n) _________ company is an organization that does business in several countries
multinational
Goods and services sold to another country
Exports
Stopping the importing or exporting of a certain product or service
Embargo
The value of money of one country expressed in terms of the money of another country
Exchange rate
Government restrictions to reduce free trade
Trade barrier
T/F A nation with a trade surplus is said to have a favorable trade position
True
T/F If a country exports more than it imports, it has a trade surplus
True
T/F Some countries limit the amount of money their citizens can take out of the country when they travel
True
T/F When a country has a favorable balance of payments, the value of its currency is usually constant or rising
True
A negative or _______ balance of payments occurs when a country sends out more money than it brings in
unfavorable