PrinBMF Ch 5

Question 1

Negative balance of trade is known as a trade deficit

Accepted Answer

True

Question 2

The business activity involved in making, buying, and selling product within a nation’s borders is ____ business.

Accepted Answer

domestic

Question 3

____ is when a business sells the right to manufacture its products or use its trademark.

Accepted Answer

licensing

Question 4

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

Accepted Answer

balance of trade

Question 5

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

Accepted Answer

free-trade zone

Question 6

When a country can produce goods more efficiently and at a lower cost this is called comparative advantage

Accepted Answer

False

Question 7

The goods and services produced within a country’s borders and sold in another country are ____.

Accepted Answer

exports

Question 8

The shared beliefs, customs, practices, and social behavior of a particular group or nation is the ____.

Accepted Answer

culture

Question 9

Parent company that owns a chain and the brand is called the franchisee.

Accepted Answer

False

Question 10

____ is the process of sending and receiving messages between people of various cultures.

Accepted Answer

intercultural communication

Question 11

An embargo that affects only certain goods is called a trade sanction.

Accepted Answer

True

Question 12

A partnership of two or more companies that work together for a specific business purpose is called a ____.

Accepted Answer

joint venture

Question 13

A government tax on imported goods is known as a tariff

Accepted Answer

True

Question 14

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

Accepted Answer

logistics

Question 15

____ is the connection made among nations when economies freely move goods, labor, and money across borders.

Accepted Answer

Globalization

Questions 15