Business in the Global Economy

An Economy that is largely involved in agriculture is generally unable to provide its citizens w/ high-quality products

A(n) ________ is also known as an economic community

The difference between a country's total exports and total imports is called balance of trade

Key function is to provide economic aid to less-developed countries

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

A multinational company is an organization that does business in several countries

One goal of the World Trade Organization is to eliminate import quotas

Trade barriers can include tariffs, embargoes and _______

A limit on the quantity of a product that may be imported or exported is an embargo

An agreement between two or more companies to share a business project is called

The __________ is the value of currency in one country compared with the value of currency in another

Infrastructure refers to a country's....

Items sold to other countries

Exists when a country specializes in the production of a good or service at which it is relatively more efficient

Does away with taxes on goods traded among the member countries

Multinational companies sometimes control a country's political power

This group helps maintain an orderly system of world exchange rates

Franchising is selling the right to use a trademark or brand name for a fee or royalty

The value of currency in one country compared with the value in another is called the interest rate

Completely prohibiting the import or export of a product

Occurs when a country buys more than it sells

The amount a country owes to other countries is called

Absolute advantage is when a country can produce a particular good or service at a lower cost than other countries

Making, buying and selling goods and services within a country is referred to as domestic business

Which of the following situations represents an absolute advantage

A tax that a government places on certain imported products

The International Monetary Fund (IMF) maintains a system of world trade and exchange rates

Which of the following would likely cause the value of the dollar to RISE?

Domestic business refers to business activities needed for creating, shipping and selling goods across national boarders

The World Trade Organization (WTO) settles trade disputes and enforces free-trade agreements between member countries

Which of the following is not an informal trade barrier

Which of the following products is NOT imported to the United States in any great quantity

Created after World War II to provide loans for rebuilding

The cost of using someone else's money is interest rate

Which of the following tends to discourage international trade