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