Chapter 4 Competing in World Markets

Question 1

What is SOFT CURRENCIES?

Answer 1

currencies that cannot be readily converted.

Question 2

What is INFRASTRUCTURE?

Answer 2

basic systems of communication, transportation and energy facilities in a country.

Question 3

What is TARIFFS?

Answer 3

taxes, surcharges, or duties on foreign products.

Question 4

What is REVENUE TARIFFS?

Answer 4

generate income for the government

Question 5

What is PROTECTIVE TARIFFS?

Answer 5

seek to limit imports and level the playing field for local competitors.

Question 6

What is QUOTAS?

Answer 6

limit set on the amounts of particular products that countries can import during specified time periods.

Question 7

What is DUMPING?

Answer 7

selling products abroad at prices below production costs.

Question 8

What is HARD CURRENCIES?

Answer 8

easily convert into other currencies

Question 9

What is EMBARGO?

Answer 9

total ban of importing specific products

Question 10

What is GATT

Answer 10

GENERAL AGREEMENT ON TARIFFS AND TRADE-reduced worldwide tariffs and other barriers

Question 11

What is WTO?

Answer 11

WORLD TRAD ORGANIZATION-institution that monitors GATT agreements and mediates international trade disputes

Question 12

What is WORLD BANK?

Answer 12

organization established by industrialized nations to lend money to less-developed countries

Question 13

What is IMF?

Answer 13

INTERNATIONAL MONETARY FUND-organization created to promote trade, eliminate barriers, and makes short-term loans

Question 14

What is NAFTA?

Answer 14

INTERNATIONAL ECONOMIC COMMUNITIES-agreement among the United States, Canada, and Mexico to break down tariffs and trade restrictions

Question 15

What is EU?

Answer 15

EUROPEAN UNION-28 nation economic alliance

Question 16

What is COUNTERTRADE?

Answer 16

barter agreement whereby trade between 2 or more nations involves payment made in the form of local products instead of currency

Question 17

What is FOREIGN LICENSING?

Answer 17

one firm allows another to produce or sell its product, use its trademark, patent in return, the firm gets a royalty

Question 18

What is MNC?

Answer 18

MULTINATIONAL CORPORATION-an organization with significant foreign operations other than their own

Question 19

What is GLOBAL BUSINESS ( STANDARDIZATION ) STRATEGIES?

Answer 19

offering a standardized and selling it in the same manner throughout a firm’s domestic and foreign markets

Question 20

What is MULTI-DOMESTIC BUSINESS ( ADAPTATION ) STRATEGY?

Answer 20

developing and marketing products to serve different needs and tastes of separate national markets

Question 21

What is JOINT VENTURE?

Answer 21

partnership between companies formed for a specific undertaking

Question 22

What is EXPROPRIATION?

Answer 22

When the country seizes the assets from a company