INTERBUSINESS&T

Question 1

It allows countries to expand their markets and access goods and services that otherwise may not have been available domestically.

Answer 1

International trade

Question 2

Product that is sold to the global market is called

Answer 2

Export

Question 3

Product that is bought from the global market is called

Answer 3

Import

Question 4

Value of nations export is less than the value of it’s import

Answer 4

Trade deficit

Question 5

Value of nations export is greater than it’s import

Answer 5

Trade surplus

Question 6

It is the integration of economies and cultures through a global network of political ideas through comm., Transpo., and trade

Answer 6

Globalization

Question 7

It deals with the exchange and distribution of goods and services made for a local consumption

Answer 7

Domestic Trade

Question 8

It includes the marketing of different goods and services to various parts of the world

Answer 8

Domestic Trade

Question 9

The prices of products go higher because of the profit they need.

Without them, it is hard to get goods and services easier and quicker

Answer 9

Middlemen

Question 10

What r the problems of international trade?

Answer 10

Buyers insolvency, Non-Acceptable, Intervention, Credit Risk, Political Risk, Regulatory Risk.

Question 11

It is an economic policy of controlling or restraining trade between nations through methods such as tariffs and quotas

Answer 11

Protectionism

Question 12

Kinds of Tariffs:

Answer 12

Revenue Tariffs and Protective Tariffs

Question 13

Is a set of rates designed primarily to raise money for the government

Answer 13

Revenue Tariffs

Question 14

It is intended to artificially inflate prices of imports and protect domestics industries from foreign competition

Answer 14

Protective tariffs

Question 15

The classical economist of the 18th century:

Answer 15

Jean-Baptiste Say, David Ricardo, Adam Smith.

Question 16

The idea that when countries focus on making things, they r comparatively good at & import the rest.

Answer 16

Specialization

Question 17

It aimed to maximize exports, minimize imports and increase the country’s supply of gold.

Answer 17

Mercantilism

Question 18

This system led to strict tariffs or taxes on imports, not only discouraging goods abroad, but profit of it.

Answer 18

Mercantilism

Question 19

It measures countries in economies on productivity and their ability to utilize limited resources for maximum value ( the sum of final goods countries produce in a year)

Answer 19

Gross Domestic Product

Question 20

GATT

Answer 20

General Agreement on Tariffs and Trade

Question 21

It is a concept in economics that explains how countries can benefit from trading with each other, even if one country is better at producing everything.

Answer 21

Comparative Advantage

Question 22

NAFTA

Answer 22

North Atlantic Free Trade Agreement

Question 23

Increase competitiveness lead to decline of price goods, improve quality of goods

Answer 23

Cheaper Goods for consumers and better product quality

Question 24

Increased international labor mobility led to an increase in skilled workers

Answer 24

Increase in skilled workers

Question 25

Nike shoes r produced in vietnam due to lower cost of production

Answer 25

Lower cost of production

Question 26

The GDP of the developing countries has led twice as much as before.

Answer 26

Poverty Reduction

Question 27

Globalization has led to tremendous increase in transport services across the globe

Answer 27

Transportation

Question 28

Prices then and now have increased tremendously

Answer 28

Increase community price

Question 29

Cause of very serious health problems all over the globe

Answer 29

Cause of deseases

Question 30

International brands are causing threat to local brand

Answer 30

Increased vulnerability and instability

Question 31

The rich r getting richer and poor r getting poorer

Answer 31

Uneven wealth distribution

Question 32

Local players suffer huge losses as they lack the potential to advertise or export their products on large scale

Answer 32

Unfair competition

Question 33

What r the advantages of globalization:

Answer 33

• Cheaper Goods for consumers and better product quality.
• Increased in skilled workers
• Lower cost of production
• Poverty Reduction
• Transportation

Question 34

Disadvantages of globalization:

Answer 34

• Increase community price
• Cause of Diseases
• Increase Vulnerability and Instability
• Uneven Wealth Distribution
• Unfair Competition

Question 35

Purchasers cannot pay the goods and services they avail

Answer 35

Buyer insolvency

Question 36

Buyers reject goods and services as different from agreed upon specification.

Answer 36

Non-Acceptable

Question 37

Trust given to its buyer, it allows to take the possession of goods prior to payment

Answer 37

Credit Risk

Question 38

Governmental action to prevent transactions being completed, it’s done to block goods from other places must not enter countries territory

Answer 38

Intervention

Question 39

When countries change leaders, it results in a change in transactions and price due to interference of the new government system

Answer 39

Political Risk

Question 40

Change in rules within the country may cause problem during transaction

Answer 40

Regulatory Risk