Chapter 5 Review

Question 1

The connection among nations when economies freely move goods, labor, and money across borders.

Accepted Answer

globalization

Question 2

Company that buys the rights to sell another company’s goods in a specific area is a

Accepted Answer

franchisee

Question 3

A group of countries that have reduced or eliminated trade barriers among themselves is a(n)

Accepted Answer

free trade zone

Question 4

An absolute advantage exists when a country can produce goods more efficiently than _____.

Accepted Answer

another country

Question 5

Which of the following is not a trade barrier?

Accepted Answer

bloc

Question 6

Money that comes into a country - the total amount of money that goes out for a specific period

Accepted Answer

balance of payments

Question 7

Chapter 5 is about?

Accepted Answer

Business in a Global Economy

Question 8

Body of laws related to the exchange of goods and services for international trade is called

Accepted Answer

trade policy

Question 9

The buying and selling of goods and services across national borders is _____.

Accepted Answer

international trade

Question 10

Balance of trade is _____.

Accepted Answer

exports minus imports

Question 11

Goods, services,and capital that are brought into a country from outside its borders.

Accepted Answer

imports

Question 12

All the business activity within a nations borders.

Accepted Answer

domestic business

Question 13

Most currencies today are _____.

Accepted Answer

floating

Question 14

He/she translates a conversation between individuals who do not speak the same language is a(n)

Accepted Answer

interpreter

Question 15

An embargo that affects only certain goods is a(n) _____.

Accepted Answer

trade sanction

Question 16

A limit on the amount of a product imported into a country during a specific period of time.

Accepted Answer

quota

Question 17

When a country can produce goods more efficiently and at a lower cost than another country.

Accepted Answer

absolute advantage

Question 18

____is having people from different backgrounds and cultures coming together in a group.

Accepted Answer

diversity

Question 19

A business that operates in more than one country is a _____.

Accepted Answer

multinational company

Question 20

The difference between a nation’s exports and its imports.

Accepted Answer

balance of trade

Question 21

The _____ for international shipping is more complex compared to domestic shipping.

Accepted Answer

logistics

Question 22

Which of the following is not a business option to enter a foreign market?

Accepted Answer

comparative trade

Question 23

___is the shared beliefs, customs, practice and social behavior of a particular group or nation

Accepted Answer

culture

Question 24

Which is not a benefit of exporting?

Accepted Answer

reduced legal documents

Question 25

Planning and managing the flow of goods, services, and people to a destination.

Accepted Answer

logistics

Question 26

A governmental tax on imported goods.

Accepted Answer

tariff

Question 27

The cost to convert one currency into another is the _____.

Accepted Answer

foreign exchange rate

Question 28

The right to sell a company’s goods or services in a specific area.

Accepted Answer

franchise

Question 29

When a business sells the right to manufacture its products or use its trademark.

Accepted Answer

licensing

Question 30

NAFTA is between USA, Canada and ____.

Accepted Answer

Mexico

Question 31

When the exchange rate is set by the forces of supply and demand in the foreign exchange market

Accepted Answer

floating currency

Question 32

The process of sending and receiving messages between people of various cultures is _____.

Accepted Answer

intercultural communication

Question 33

Goods and services produced within a country’s borders and sold in another country.

Accepted Answer

exports

Chapter 5 Review

Questions 33

Chapter 5 Review

Questions 33