Chapter 3 Business in the Global Economy

A tax that a government places on certain imported products.

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

Items bought from other countries.

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

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

3 main factors that affect currency exchange rates are: balance of trade, economic condition &

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

Occurs when a country sells more than it buys.

Licensing

The amount a country owes to other countries is called

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

Items sold to other countries.

3 key effects on a country's econ development: ??????, technology & agricultural dependency

Domestic business: Bus. activities needed for creating,shipping, & selling goods across borders

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

When a country has a favorable balance of payments, the value of its currency is usually constant or rising

The difference between a country's total exports and total imports.

Which of the following tends to discourage international trade?

The value of currency in one country compared with the value in another is called:interest rate

In a free-trade zone, member countries agree to remove duties/trade barriers on products traded

What International business aspect would include language/customs/values?

Infrastructure refers to a country's

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

Culture, tradition, and religion can sometimes act as an informal trade barrier.

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

The cost of using someone else's money

When a country has more than one absolute advantage it must choose between.

A franchise has the right to

One goal of the WTO is to eliminate import quotas.

Completely prohibiting the import or export of a product.

The key elements that reflect a country's level of economic development are

An econ that is largely involved in agriculture can't provide a lot of quality goods

Comparative advantage is a situation in which a nation produces products that it

A(n) ____ is a company that does business in several countries.

How do we measure trade relations?

Common market members

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