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PBMF Chapter 3 - Business in the Global Economy Flashcards | StudBud
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PBMF Chapter 3 - Business in the Global Economy
PBMF Chapter 3 - Business in the Global Economy
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Principles of Business Marketing and Finance Business in a Global Economy
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
Without foreign trade, many of the items we purchase would not be available.
False
True
2
The making, buying, and selling of goods and services within a country is called
international business.
world trade.
importing.
domestic business.
3
Selling the right to use some intangible property for a fee or royalty is called
licensing.
a joint venture.
a free-trade agreement.
franchising.
4
Goods and services sold to other countries are called
import
exports.
domestic business
tariffs
5
limit placed on quantity of a product that may be exported or imported during given period
tariff
embargo
quota
luxury tax
6
develops same products and uses same marketing strategy worldwide
quota
multinational strategy
global strategy
comparative advantage
7
treats each country market differently and develops products based on their tastes and customs
global strategy
multinational strategy
foreign exchange market
embargo
8
Value of a currency in one country compared with the value in another country
exports
interest rate
exchange rate
imports
9
Licensing
risky way for a company to expand into other countries.
All of these
usually involves selling a product or service.
has a low financial investment, so the potential return low
10
A nation with a trade deficit is said to have a favorable trade position.
False
True
11
Common market members
impose high tariffs on one another’s products.
produce and sell exactly the same products.
impose no duties or trade barriers on member countries
prohibit one another’s workers from moving across borders.
12
When a country has favorable balance of payments, they receive more $$$ in a year than pay out
True
False
13
two or more companies agree to share a business project.
tariff
common market
joint venture
embargo
14
The countries involved in the North American Free Trade Agreement are
United States, Canada, Mexico
United States, Mexico, Panama
United States, Mexico, China
United States, Hawaii, Canada
15
items bought from other countries
quota
exports
imports
16
Most business activities occur within a country’s own borders.
True
False
17
The difference between a country’s total exports and total imports is called the
trade surplus.
foreign debt.
balance of trade.
trade deficit.
18
The key elements that reflect a country’s level of economic development are
religion, traditions, and customs.
literacy level, technology, and agricultural dependency.
location, climate, and language.
government system, political stability, and trade barriers.
19
Joint venture-agreement between 2 + countries to remove duties and trade barriers
False
True
20
A country in which a MNC places business activities is called the
economic community.
free-trade zone.
host country.
home country.
21
Other countries can produce goods cheaper because their labor costs are lower.
False
True
22
items sold to other countries
imports
exports
exchang rate
23
A tax that a government places on certain imported products is called a(n)
embargo.
quota.
tariff.
exchange rate
24
Infrastructure refers to a country’s
education system
transportation, communication and utility systems
system of local government
legal system
25
About how many U.S. jobs depend on international business?
1 out of 10
1 out of 6
1 out of 4
1 of 2
26
Because of international trade, all nations of the world use the same currency.
True
False
27
The amount a country owes to other countries is called
foreign debt.
balance of payments.
trade deficit.
national debt.
28
A corporation that is involved in doing business in several different countries is known as
domestic business
infrastructure
multinational company d.
joint venture
29
Comparative advantage is a situation in which a nation produces products that it
is able to produce using the fewest resources.
is able to produce more than other countries.
is able to produce good/service relatively more efficiently.
is able to produce products cheaper than other countries.
30
A franchise has the right to
use a company name or business process in a specific way.
use some intangible property for a fee or royalty.
sell a product or service.
be a major economic power in a host country.
31
main function to give economic aid to less developed countries
International Monetary Fund
World Trade Organization
World Bank
32
Economy involved most in ag might be unable to provide citizens with a high-quality products.
True
False
33
A(n) _____is the value of a currency of one country compared with the value of another country.
conversion rate
exchange rate
inflation rate
balance of payments
