ITB Ch3 Review

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

Religion is an element of the ______ factor of international business.

Potential drabacks of a MNC

The international organization that settles trade disputes and enforces free-trade agreements

Org created in 1944 post-WWII focused on aiding less developed countries with over 180 member countries.

The difference between a country's exports and imports is

An informal trade barrier is created by government actions

Selling the right to use intangible property such as a name, logo, brand, slogan

Absolute advantage is when a country can

A country that wishes to enhance international business environment will likely use

The value of a country's currency is likely to decline due to

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

A political action the government takes to restrict trade

This group was created in 1995, settles trade disputes, and enforces free-trade agreements

Comparative advantage is when a country can

A restriction to free trade is called a trade barrier

Where members get rid of tariffs and barriers and companies can freely invest in other countries

Having more money leave the country than come in to the country is favorable

A certain area where products are duty free and stored or assembled for free

Business activities for making, buying, selling goods and services across national borders is

Paying a royalty for the right to use a businesses name and run another business under the same exact model.

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

Items brought in from other countries

A tax that governments place on certain imports

When a country pays out more than it takes in, this is a(n) ___________ balance of payments.

When the government complete stops the import or export of a product

Members do away with duties and other trade barriers

When a country can produce a good or service at a lower cost

When a country's imports exceed its exports, there is a trade

Goods or services sold to other countries is an import

Where member countries agree to remove taxes and trade barriers on products traded among them

The difference between money coming in and money leaving the country

The place where the MNC has their parent company headquartered

What are the four main factors businesses must consider before doing foreign business?

When the MNC treats each host country differently and adaps to customs and tastes of each country

Country where the MNC carries out business activities

Select all the factors that may affect currency values

A nation's transportation, communication, and utility systems is their balance of government

Which is not a benefit of an MNC

When a multinational company uses the same product and strategy worldwide in all countries

Choose the best example of international business:

The group was created in 1946, has over 150 member nations, helps promote economic cooperation, maintains exchange rates

When a country exports more than it imports

What does domestic mean

A government set limit on quantity of a product to be imported or expoted is a(n)

The value of a currency in one country compared to the value in another is the exchange rate

An organization that does business in several countries