Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BUS100 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

international business

A

all business activities that involve exchanges across national boundries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

absolute advantage

A

the ability to produce a specific product more efficiently than any other nation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

comparative advantage

A

the ability to produce a specific product more efficiently than any other product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

exporting

A

selling and shipping raw materials or products to other nations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

importing

A

purchasing raw materials or products in other nations and bringing them into one’s own country,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

trade deficit

A

a negative balance of trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

balance of payments

A

the total flow of money into a country minus the total flow of money out of that country over some period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

AKA “Import Duty”

A

Tariff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Import Duty (Tariff)

A

a tax levied on a particular foreign product entering a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

dumping

A

exportation of large quantities of a product at a price lower than that of the same product in the home market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

nontariff barrier

A

a nontax measure imposed by government to favor domestic over foreign suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

import quota

A

a limit on the amount of a particular good that may be imported into a country during a given period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

embargo

A

to complete halt to trading with a particular nation in a particular product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

foreign-exchange control

A

a restriction on the amount of a particular foreign currency that can be purchased or sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

currency devaluation

A

the reduction of the value of a nations currency to the currencies of other countries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Four examples of nontariff barriers

A
  1. import quota
  2. embargo
  3. foreign-exchange control
  4. currency devaluation
17
Q

Reasons for trade restrictions

A
  1. to equalize a nation’s balance of payments.
  2. to protect new or weak industries
  3. to protect national security
  4. to retaliate for another nation’s trade restrictions
  5. to protect domestic jobs
18
Q

Reasons against trade restrictions

A
  1. higher prices for consumers
  2. restriction of consumers’ choices
  3. misallocation of international resources
  4. loss of jobs
19
Q

GATT

A

General Agreement on Tariffs and Trade

20
Q

General Agreement on Tariffs and Trade (GATT)

A

An international organization of 153 nations dedicated to reducing or eliminating tariffs and other barriers to world trade

21
Q

WTO

A

World Trade Organization

22
Q

World Trade Organization (WTO)

A

powerful successor to GATT that incorporates trade in goods, services, and ideas.

23
Q

economic community

A

an organization of nations formed to promote the free movement of resources and products among members and to create common economic policies

24
Q

NAFTA

A

North American Free Trade Agreement (1994)

25
Q

licensing

A

a contractual agreement in which one firm permits another to produce and market is product and use its brand name in return for royalty or other compensation

26
Q

8 Methods of Entering International Business

A
  1. Licensing
  2. Exporting
  3. Joint Ventures
  4. Totally Owned Facilities
  5. Strategic Alliances
  6. Trading Companies
  7. Countertrade
  8. Multinational Firms
27
Q

bill of lading

A

document issued by a transport carrier to an exporter to prove that merchandise has been shipped

28
Q

draft

A

issued by the exporter’s bank, ordering the importer’s bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer’s bank.

29
Q

letter of credit

A

issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary

30
Q

strategic alliance

A

a partnership formed to create competitive advantage on a worldwide basis

31
Q

trading company

A

provides a link between buyers and sellers in different countries

32
Q

countertrade

A

an international barter transaction

33
Q

multinational enterprise

A

a firm that operates on a worldwide scale without ties to any specific nation or region

34
Q

10 Largest Multinational Corporations

A
  1. Royal Dutch/Shell Group
  2. ExxonMobil
  3. Walmart Stores
  4. BP
  5. Chevron
  6. Total
  7. Conoco Phillips
  8. ING Group
  9. Sinopec
  10. Toyota Motor
35
Q

Export-Import Bank of the United States

A

an independent agency of the U.S. government whose function is to assist in financing the exports of American firms

36
Q

multilateral development bank (MDB)

A

an internationally supported bank that provides loans to developing countries to help them grow.

37
Q

MDB

A

multilateral development bank

38
Q

IMF

A

International Monetary Fund

39
Q

International Monetary Fund (IMF)

A

an international bank with 186 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits

BUS100 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions