Unit 3 International business

Tariffs and Embargoes promote trade.

Which is NOT one of the indicators of economic development from chapter 4?

Designated region in which merchandise is allowed to pass through with lower customs duties and fewer customs procedures

Import quotas limit the quantity of an import and thereby protect _.

Centrally Planned economies flourished b/c they provide incentives for workers and satisfy all consumer needs

An example of _ in electric theory is when a company has ownership of some special asset, such as a powerful brand, tech

The government has many roles in a market economy. Which is NOT one from chapter 4?

“Financial assistance in the form of cash, tax breaks, price supports, etc. from the government.”

A (A/N) is a complete ban on trade in one or more products with a particular country.

Which is NOT one of the three types of tariffs reviewed in the chapter? 

_ refers to the relative ability of two countries’ currencies to buy the same “basket” of goods in those two countries.

 Privatization involves the sale of private-owned economic resources to the federal government.

Sometimes the government interferes with trade  to achieve political motives. Which is not one of the motives from the?

governments also interfere with trade due to economic motives such as protecting infant industries or helping with trade

In a ___ economy, resources are split between the government and private ownership. It is the most common type

Electric theory states that firms do FDI when location, ownership advantage, and internalization advantages are all pre

The goal of a centrally planned economy is to promote social and economic equality

The term_ refers to the structure and processes a country uses to allocate its resources and conduct commercial acitvity

The trade theory of __ argues that nations should accumulate wealth by encouraging exports and discouraging imports

FDI and portfolio investment are similar because you gain control of the company with both

Governments would never interfere with trade for a cultural reason.