Business Test prt. 5

the ___________ is the total amount of money that overflows in and out of a country

balance of payments

Which of the following is an example of a natural trade barrier?

distance

A country that exports more goods than it imports is said to have a(n):

favorable balance of trade

A(n) _____ is a tax levied by a nation on imported goods.

subsidy

The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading.

direct foreign investment

In 1997, Russia and Ukraine exported carbon steel plate into the U.S. at a price much lower than the countries were found guilty of charging the identical steel in their home markets. Russia and Ukraine were engaged in:

dumping

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n):

joint venture

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

nationalism

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay round

In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on importing Mexican avocados is an example of a(n):

Embargo

A total prohibition against importing certain products is called a(n):

embargo

_____ are laws that require a company earning foreign currency from its exports to sell the foreign currency to a control agency, usually a central bank.

exchange controls

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

export

The United States buys copper from Chile's Escondida copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S. the copper is an example of a(n):

import

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

import quotas

The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world. Ford is a(n) _____ company.

multinational

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

balance of trade

Laws relating to the alcoholic content of beer have required many imported brands of beer to be labeled malt liquor when it is sold in the United States. In addition, all beer sold in the U.S. must contain an expiration date or a "best-buy" date. These laws have made it difficult for small foreign breweries to enter the U.S. market. These laws are an example of:

customs regulations

The World Trade Organization (WTO):

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

world bank