ch3 intro to bus

The amount a country owes to other countries is called

Occurs when a country sells more than it buys.

3 effects on a country’s level of economic development are technology, agricultural dependency

A limit on the quantity of a product that may be imported or exported.

Which of the following products is NOT imported to the United States in any great quantity?

Completely prohibiting the import or export of a product.

Items sold to other countries.

The difference between a country’s total exports and total imports is called balance of

The value of currency in one country compared to another is called the interest rate.

Franchising is selling the right to use a trademark or brand name for a fee or royalty.

If a country exports more than it imports, it has a trade surplus.

An agreement between two or more companies to share a business project is called

Infrastructure refers to a country’s

This group helps maintain an orderly system of world exchange rates.

MNCs sometimes control a country’s political power.

Occurs when a country buys more than it sells.

Exists when a country can produce a good or service at a lower cost then other countries.

Which of the following situations represents an absolute advantage?

A co. is moving to Korea, research the language,customs, and values. What envir is it?

A country’s culture, traditions, and religion can sometimes act as informal trade barriers.

Which of the following tends to discourage international trade?

The amount of money that comes into a country and the amount that goes out 

A _______ company is an organization that does business in several countries

Without foreign trade, many things you buy would cost more or not be available.

Which of the following would likely cause the value of the dollar to RISE?

A tax that a government places on certain imported products.

Economies in agriculture are generally unable to provide its citizenswith high-quality products

The cost of using someone else’s money.

Domestic business is needed for creating, shipping, and selling goods across national borders.

One goal of the World Trade Organization is to eliminate import quotas.

Which of the following is an example of a global strategy?

A country who produces a good or service at which it is relatively more efficient.

Items bought from other countries.

Factors that affect currency exchange rates are  balance of payments, economic conditions

With a free-trade zone, member countries agree to remove duties and trade barriers.