Business Chapter 5

____ is when a business sells the right to manufacture its products or use its trademark.

Licensing

Total amount of money that comes in to a country, minus the total amount of money that goes out for a specific period of time

balance of payments

The ____ is the difference between a nation's exports and its imports.

balance of trade

the difference between a nation's exports and its imports

balance of trade

when a country specializes in producing a product at which it is relatively more efficient

comparative advantage

The shared beliefs, customs, practices, and social behavior of a particular group or nation is the _____.

culture

shared beliefs, customs, practices, and social behavior of a particular group or nation

culture

Money

currency

Having people from different backgrounds, cultures, or demographics coming together in groups

diversity

The business activity involved in making, buying, and selling product within nation's borders is _____ business.

domestic

all the business activity involved in making, buying, and selling product within a nation's borders

domestic business

The goods and services produced within a country's borders and sold in another country is ____.

exports

goods and services that are produced within a country's borders and sold in another country

exports

currency with an exchange rate set by the market forces of supply and demand in the foreign exchange market

floating currency

the cost to convert one currency into another

foreign exchange rate

Goods and services that are brought into country from outside its borders are called ____.

imports

buying and selling goods and services across national borders is called

international trade

A partnership of two or more companies that work together for a specific business purpose is called a ____.

joint venture

An international ____ allows a company in one country to enter a foreign market without assuming all the risk

joint venture

Planning and managing the flow of goods, services, and people to a destination is ____.

logistics

is the use of English by people with a different native language

English as a second language

_____ is the connection made among nations when economies freely move goods, labor, and money across borders.

Globalization

A government may impose a(n) ____ on imported goods to protect domestic businesses.

tariff

a government tax on imported goods

tariff

The document listing the conditions and terms for importing and exporting products between countries is a ____

trade agreement

A(n) ____ is any government action taken to control or limit the amount of imports.

trade barrier

negative balance of trade

trade deficit

A(n) ___ is a body of laws related to the exchange of goods and services for international trade

trade policy

an embargo that affects only certain goods

trade sanction

A(n) ____ is a group of countries that join together to trade as if they are a single country.

trading block

_______ is the process of sending and receiving messages between people of various cultures.

Intercultural communication

When a country can produce goods more efficiently and at a lower cost than another country

absolute advantage

Person or company that buys the rights to use a brand

franchise

parent company that owns a chain and the brand; in return for a franchise fee and royalties, the ____ provides standards and procedures to get the company organized and in operation

franchisor

A(n) ____ is a group of countries that have reduced or eliminated trade barriers among themselves.

free trade zone

A business that operates in more than one country is called a ____

multinational corporation

A(n) ____ is a limit on the amount of a product imported into a country during a specific period of time.

quota