Business Structure

Question 1

Globalisation

Answer 1

the increasing freedom of movement of goods, capital and people around the world.

Question 2

Free trade

Answer 2

no restrictions or trade barriers exist that might prevent or limit trade between countries.

Question 3

Tariffs

Answer 3

taxes imposed on imported goods to make them more expensive than they would otherwise be.

Question 4

Quotas

Answer 4

limits on the physical quantity or value of certain goods that may be imported.

Question 5

Voluntary export limits

Answer 5

an exporting country agrees to limit the quantity of certain goods sold to one country (possibly to discourage the setting of tariffs/quotas).

Question 6

Protectionism

Answer 6

using barriers to free trade to protect a country’s own domestic industries

Question 7

Multinational business

Answer 7

business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.

Question 8

Privatisation

Answer 8

selling state-owned and controlled business organisations to investors in the private sector.