chapter 4: international business

Question 1

domestic transaction

Answer 1

buying in the country of production

Question 2

international business

Answer 2

buying from a foreign country

Question 3

imports

Answer 3

bought from another country

Question 4

exports

Answer 4

sold to another country

Question 5

balance of trade

Answer 5

exports - imports. negative=trade deficit. positive=trade surplus

Question 6

offshore outsourcing

Answer 6

practice of hiring service providers from countries where labour costs are lower to complete steps in the production process

Question 7

tariff barriers

Answer 7

import tax. raises the price of foreign goods. gives consumers a price incentive to buy domestic goods.

Question 8

non tariff barriers

Answer 8

standards for the quality of imported goods