Lesson #7

Question 1

Multinational corporations

Answer 1

Owning businesses in 2 or more countries

Question 2

Trade barriers

Answer 2

Government regulations that increase cost and restrict goods

Question 3

Tariff

Answer 3

Direct tax on imported goods

Question 4

Non tariff barriers

Answer 4

Non tax methods to reduce imported goods

Question 5

Non tariff barriers: Quotas

Answer 5

Limited on volume of imported products

Question 6

Non tariff barriers: Voluntary export restraints

Answer 6

Voluntary limits on the number of products exported

Question 7

Government import standards

Answer 7

Standards to protect health and safety

Question 8

Government subsidies

Answer 8

Financial help given to domestic companies

Question 9

Customs valuation/classification

Answer 9

Classification of imports to determine tariff size

Question 10

World Trade Organization (WTO)

Answer 10

Organization with rules of trade

Question 11

Regional trading zones

Answer 11

Areas in which tariffs are reduced or eliminated

Question 12

Europe’s Maastricht Treaty

Answer 12

Trade agreement between most European countries

Question 13

NAFTA

Answer 13

Trade agreement between US, Canada and Mexico

Question 14

CAFTA

Answer 14

Trade agreement between US, DR, and Central America

Question 15

Global consistency

Answer 15

When a multinational company runs using the same rules in each country

Question 16

Exporting

Answer 16

Selling domestic trade products to foreign countries

Question 17

Cooperative contract

Answer 17

Agreement where a foreign business owner pays a company a fee for the right to conduct that business is their country

Question 18

Strategic alliance

Answer 18

Agreement where companies combine resources,cost, risk,etc

Question 19

Joint venture

Answer 19

2 independent companies collaborate to form a third

Question 20

Wholly owned affiliates

Answer 20

Foreign offices that are 100% owned by the parent company

Question 21

Purchasing power

Answer 21

Cost of a standard set of goods and services in different countries

Question 22

Political uncertainty

Answer 22

Risk of major changes that can result in war, etc

Question 23

Policy uncertainty

Answer 23

Changes in law/government that directly affect companies

Question 24

Expatriate

Answer 24

Someone who lives and works outside their native country