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Introduction to Business Chapt. 3 : Business in the Global Economy Flashcards | StudBud
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Introduction to Business Chapt. 3 : Business in the Global Economy
What is Franchising?
Absolute Advantage is:
Introduction to Business Chapt. 3 : Business in the Global Economy
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1
Absolute Advantage is:
Certain advantages some countries have and some don't
Total advantage
When a country is able to produce goods and services at a lower cost
When a country sells more products than the other
2
What is Franchising?
To launch a set of products
To launch your own company and then advertise it
To use another company's business name or business process in another way
3
An embargo is:
Permanently stopping an import or an export for a specific reason
Loading the products onto the ship for transportation
Bringing in all of the goods at one time
Limits placed on the quantity of a product
4
What are cultural influences in business?
How people greet in the way most acceptable to the customs of a country
The spread of various cultures
People in the workplace who celebrate different cultures
Taking inspiration from other cultures you are interested in learning about
5
An example of a formal trade barrier is:
Trade professionally
A country is required to stop imports and exports ASAP
Buying a bike for $140.00 and paying a 20% tariff of $28.00 + shipping
Refusing to pay taxes
6
True or False: A comparative advantage is when a country can produce goods and services for a much cheaper price
True
False
7
When a quota is eliminated, what does this mean for trade?
Duty-free products
Trade permanently stops
Trade will go as usual, nothing is going to change
There will no longer be a set limit for the quantity of certain products
8
Global Strategy is used:
Regionally
Worldwide
Locally
9
A country that wishes to enhance national trade activities would most likely use:
Strict trade barriers
A tariff
Very high taxes on goods
An embargo
10
True or False: Religion is an element of the religious component of the international business environment
False
True
11
A Multinational Company (MNC) is:
A company with many locations worldwide that does business around the world
A company with just locations around the world
A company with many locations in one country
I don't know
12
How do countries encourage international trade in order to foster economic prosperity?
Placing limits on the quantity of products
Addressing political and legal concerns
Free-trade zones, Free-trade agreements, Common markets
Not taxing goods or services
13
When a company becomes the main economic power in its host country, etc. what is this called?
Dominance
Absolute control
Communism
The drawback(s) of Multinational Companies
14
True or False: A joint venture is an agreement between two companies willing to share a business project
False
True
15
True or False: Economic Conditions is one of the three factors that affects the value of global currencies
True
False
16
True or False: Infrastructure is a country's transportation systems, communication systems and utility systems, etc.
True
False
17
True or False: Imports are items bought and brought in from another country
False
True
18
True or False: Franchising does NOT involve the use of a company's business name or business process
False
True
19
What is balance of trade?
Exchange Rate
The comparison between a country's total imports and total exports
Balance of Trade
Balance of Trade, it doesn't mean anything
20
Exports are:
I have no clue
Products and services from another country that are used here
Things we just don't want to use anymore
Goods and services made in a country that are sold to other countries
21
When a country's imports exceed its exports it is left with:
Trade surplus
Nothing else to sell to other countries
Some extra money to buy more stuff
A trade deficit
22
What is the name of the international organization that settles trade disagreements and enforces free-trade agreements?
World Economic Forum (WEF)
World Trade Center (WTC)
World Trade Organization (WTO)
Water Environment Federation (also WEF)
23
True or False: Tariffs and Taxes are mandated by a country's government
False
True
24
The value of a country's currency is most likely to decline because of:
Trade Deficit
The Global Economy
Imports
Lower Interest Rates
25
A common international business entry mode would be:
Advertising
Applying
Licensing
Introducing
26
Balance of payments is:
When a country loses money and cannot pay its debt
Balance of Payments, what's that?
A comparison between how much money a country spends and how much it makes
A country paying off its debts evenly
27
What is infrastructure?
The school you go to
How a country is built
A local food production factory near you
Transportation systems, Communication systems, Utility systems, etc.
28
What will companies do in order to increase trade?
Produce less of a specific product and more of another
Raise taxes
Raise production costs to make a profit
Lower tariffs
29
What is comparative advantage?
When a country has a better economy than the other one
When a country is able to produce more of what it is good at producing
A comparison of advantages two countries have against each other
I don't know what this term means...
30
What is a quota?
A limit placed (usually on an import) on the specific quantity of a product
A kind of tariff
Offering a discount for shipping costs of a product
How much money you owe to the person
