Intro to Business 3: Business in the Global Economy

Items bought from other countries.

A country's infrastructure refers to it's climate and natural resources.

Trade barriers can include tariffs, embargoes, and ______.

Goods and services sold to other countries.

Created after WWII to provide loans for rebuilding.

Key function is to provide economic aid to less developed countries.

The two main divisions of the World Bank are:

Business activities for creating, shipping, & selling goods & services across national borders.

The amount a country owes to others.

Which of the following factors does not affect the value of a country's currency:

Traditions, culture and religion have no effect on trade barriers.

The main benefit of a joint venture is the sharing of marketing ideas & shipping facilities.

Foreign debt is the amount of money other countries owe the US.

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

What are 2 strategies commonly used by multinational companies?

What are the 4 main elements of the international business environment:

Infrastructure is a significant factor that affects the economic development of a country.

The currency of the EU is called the ruble.

Trade surplus exists when a country exports more than it imports.

A company planning to sell the rights to its brand name for use in other countries.

The value of a country's currency is likely to decline as a result of:

Franchise agreements popular with fast food restaurants.

Making, buying, and selling goods and services within a country is referred to as...

An informal trade barrier is created by government actions.

Settles trade disputes and enforces free-trade agreements between member countries.

If a country's trade balance is unfavorable they have a trade deficit.

What is the main difference between the balance of trade and the balance of payments?

A selected area where products can be imported duty free & then stored & assembled.

NAFTA is an agreement between the US, Mexico, and Japan.

An agreement between two or more companies to work together on a business project is called...

The international organization that settles trade arguments & enforces free trade agreements.

Infrastructure refers to a nation's...

A country's level of econ development are based on literacy level, agricultural needs & what?

Balance of payments is the difference in money that enters a country & the amount that exits.

Countries are interdependent and so are their economies.

The Intl Bank for Reconstruction & Development is commonly called the World Bank.

Maintains a system of world trade and exchange rates.

When a country specializes in the production of a good or service and is more efficient.

A __________________ is also known as a economic community.

The difference between a country's total exports and total imports is called:

Are tariffs on certain goods used to restrict free trade?

A ____ is a limit on the quantity of a product that can imported or exported in a given period.

When a country can produce a good or service at a lower cost than other countries it has...

Does away with taxes on goods traded among the member countries.

Supply and demand affect the value of currency.

Does supply and demand effect the exchange rate?

Licensing has a low financial investment and a high potential financial return?

Trade barriers enhance free trade.

The value of currency in one country compared with the value of currency in another.