BE--"Business in the Global Economy" (Ch. 3)

Economic factors to consider include inflation, infrastructure, technology and education.

A MNC develop products and mkt. strategies that adapt to customs and buying habits of the mkt.

A limit on the quantity of a product that may be imported and exported within a given period.

A favorable balance of payments occurs when a country pays out more money than it receives.

A tax that a government places on certain imported products.

In a common market, members do away with duties and other trade barriers. The EU is an example.

___ ___ exists when a country can produce a g or s at a lower cost than other countries.

A nation's transportation, communication, and utility systems.

___ ___ is the making, buying and selling of goods and services within a country.

The diff. between a country's payments to other countries and its total receipts from countries

Stopping the importing/exporting of a certain product or service.

___ __ ___ is the diff. between the amt. of $ that comes into a country & the amt. that leaves.

___ is selling the right to use some intangible property for a fee or royalty.

___ ___ are the cost of using someone else's money.

If a country imports more than it exports, it has a trade ___ and its trade position is ___.

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Literacy, technology and agricultural dependency affect a country's level of econ. development.

A drawback to a MNC is that the host country will become too dependent on the MNC for jobs.

A ___ is the right to use a company name or business process in a specific way.

An organization that conducts business in several countries.

Franchising & licensing involve a royalty payment for the right to use a process/company name.

Goods and services sold to another country.

The US may impose a quota on foreign products to protect US companies/manufacturers.

Cultural factors to consider are language, religion, food, but not traditions.

___  ___ refers to bs. activities needed for creating & selling g & s across national borders.

The main function of the IMF is to provide economic aid to less-developed countries.

The WTO settles trade disputes & enforces free-trade-agreements between its members.

When a nation has an unfavorable balance of payments, its currency usually rises in value.

An agreement between 2 or more companies from different countries to share a bs. project.

Higher interest rates generally create lower consumer demand.

A country's political stability will affect currency exchange rates among countries.

The value of money of one country expressed in terms of the money of another country.

The culture, traditions, and religion of a country can create ___ trade barriers.

A free-trade ___ is a selected area where products can be imported duty-free and stored.

The main cultural & social factors that affect international business are:

Geographic factors to consider include climate, natural resources, customs and terrain.

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

Government restrictions to reduce free trade.

___ ___ is the amount a country owes to other countries.

Goods and services bought from another country.

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

If a govt. wishes to do so, all imports & exports of a product can be stopped by imposing a(n) __.

Foreign or world trade are additional names for "International business".

Supply and demand affect the value of currency.

The country in which the multinational company places bus. activities is called the __ country.