Question Answer
Refers to business activities needed for creating, shipping, and selling good across national borders. International business
If a country exports more than it imports, it has a ___________. Trade Surplus
The value of currency in one country compared with the value in another is called the_____________. Exchange rate
What can be said about the manufacturing of an economy that is largely involved in agriculture? It is generally unable to provide citizens with a large number of high-quality products.
Name 3 informal trade barriers. country's culture, traditions, and religion
With a _________________, member countries agree to remove duties and trade barriers on products traded among them. Free trade agreement
__________________ sometimes control a country's political power. Multi National Companies (MNCs)
____________is selling the right to use a trademark or brand name for a fee or royalty. Licensing
What organization's goals include: lower tariffs, eliminate quotas, reduce barriers for financial services, assist poor countries World Trade Organization
Give an example of an absolute advantage Saudi Arabia in oil production
What items does the US import entirely? bananas, coffee, cocoa, spices, tea, silk, crude rubber
The amount a country owes to other countries is called ______________. Foreign Debt
What factors of the international business environment should you research before expanding your businesses to Korea? Geographic, Economic, Cultural, Political & Legal
____________ refers to a country's transportation, communication, & utility systems. Infrastructure
Name 3 formal trade barriers that discourage international trade. Quotas, Tariffs, Embargoes
____________ strategy uses the same product and marketing strategy worldwide. Global Strategy
An agreement for two or more companies to share a business project is called ____________________________. Joint Venture
This___________________ group helps maintain an orderly system of world exchange rates. International Monetary Fund
Items bought from other countries Imports
A tax that a government places on certain imported products Tariff
Occurs when a country sells more than it buys Trade Surplus
A limit on the quantity of a product that may be imported or exported. Quota
Exists when a country can produce a good or service at an absolutely, lower cost than other countries. Absolute Advantage
Exists when a country specializes in the production of a good or service at which it is relatively more efficient. Comparative Advantage
Occurs when a country buys more than it sells. Trade Deficit
The difference between a country's total exports and total imports is called a _____________________________. Balance of Trade
The difference between the amount of money that comes into a country and the amount that goes out of it is called ______________. Balance of Payments
The three main factors that affect currency exchange rates among countries? balance of payments, economic conditions, & political stability
The three key effects on a country's level of economic development? literacy level, technology, and agricultural dependency
A(n) ______________________ is an organization that does business in several countries. Multinational Company (MNC)
__________ strategy treats each country market differently. Multinational strategy
__________ is the making, buying, and selling of goods and services within a country. Domestic business
The _____________ makes loans to help developing countries & provides capital and technical help to private businesses in nations with limited resources. World Bank