Business Management Chapter 7

Question 1

A total ban on the import of a good from a particular country.

Accepted Answer

embargo

Question 2

The difference between the value of goods a country exports and the value of goods it imports.

Accepted Answer

balance of trade

Question 3

The value of one currency in terms of another is the ____ ____ ____.

Accepted Answer

foreign exchange rate

Question 4

In a _____, companies compete actively with businesses from all over the world.

Accepted Answer

global economy

Question 5

True or False: Culture does not effect business

Accepted Answer

False

Question 6

____is a tax on imports.

Accepted Answer

tariff

Question 7

When a company specializes in what it does best, it is said to be using its...

Accepted Answer

absolute advantage

Question 8

Companies sometimes pool resources and skills in order to achieve common goals through...

Accepted Answer

strategic alliances

Question 9

The exchange of goods and services by different countries is known as....

Accepted Answer

international trade

Question 10

A region within which trade restrictions are reduced or eliminated.

Accepted Answer

Free trade area

Question 11

The act of engaging in a variety of operations.

Accepted Answer

diversification

Question 12

True or False: An embargo is a total ban on an imported good from a particular country

Accepted Answer

True

Question 13

Most of the world today depends on ________ to maintain its standard of living.

Accepted Answer

International Trade

Question 14

True or False: Politics effect the Global Economy

Accepted Answer

True

Question 15

What is foreign exchange?

Accepted Answer

When companies must pay in a different currency

Question 16

Goods and services that are sold abroad?

Accepted Answer

exports

Questions 16