Chapter 3 - Exploring Global Business

Question 0

Revenue tariff

Answer 0

To generate income for government

Question 1

Tariff

Answer 1

A tax on imports

Question 2

Protective tariff

Answer 2

To protect domestic industries from competition

Question 3

Import quota

Answer 3

A limit on the amount of a certain good that may be imported into a country

Question 4

Embargo

Answer 4

A complete stop to trading with a particular nation or product

Question 5

Foreign exchange control

Answer 5

Restriction on the amount of foreign currency that can be produced or sold

Question 6

Currency devaluation

Answer 6

The reduction of the value of the nations currency relative to other countries

Question 7

Bureaucratic red tape

Answer 7

Making unnecessary burdensome and complex rules for imports

Question 8

Cultural attitudes

Answer 8

Certain products are not acceptable to bring into some countries

Question 9

International free-trade agreements

Answer 9

To promote free trade and reduce barriers

Question 10

General Agreement on Trade and Tariffs (GATT)

Answer 10

International organization of 153 nations dedicated to reducing or eliminating tariffs among other members. Now World Trade Organization (WTO)

Question 11

Economic communities

Answer 11

An organization of nations who join together to promote the free movement of resources and products among its members

Question 12

(OPEC)

Answer 12

Organization of petroleum exporting countries

Question 13

(NAFTA)

Answer 13

North American Free Trade Agreement

Question 14

International business

Answer 14

All business activities that involve exchanges across national boundaries

Question 15

Absolute advantage

Answer 15

Ability to produce a certain product more efficiently than any other nation

Question 16

Corporate advantage

Answer 16

Ability to produce a specific product more efficiently than any other product

Question 17

Exporting

Answer 17

Selling and shipping raw materials or products to other nations

Question 18

Importing

Answer 18

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

Question 19

Balance of trade

Answer 19

Total value of nation’s exports minus total value of imports over a period time

Question 20

Trade deficit

Answer 20

Negative balance of trade

Question 21

Balance of payments

Answer 21

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