Chapter 29-business And The International Economy

Question 1

Define globalization

Answer 1

Term used to describe increases in worldwide trade and movement of people and capital between countries

Question 2

Define free trade agreements

Answer 2

They exists when countries agree to trade imports/exports with no barriers such as tariffs and quotas

Question 3

Define perfectionism

Answer 3

It is when a government protects domestic businesses from foreign competition using tariffs and quotas

Question 4

Define multinational businesses

Answer 4

Are those with factories , production or service operations in more than one country. These are sometimes known as transnational businesses

Question 5

Define currency appreciation

Answer 5

Occurs when the value of a currency rises-it buys more of another currency than before.

Question 6

Define currency depreciation

Answer 6

Occurs when the value of a currency falls-it buys less of another currency