Multiple Choice Flashcards
A type of licensing agreement that grants a company, exclusive rights to provide a product in a specific geographic area or country
exclusive, distribution rights
The ratio between prices paid for imports, and those received for exports
Terms of trade
One of two or more countries involved in a business relationship with another country or countries
Trading partner
this exchange rate is not fixed and fluctuates, according to supply and demand to determine the price that is used to purchase and sell currency
floating rate
The reliance of two or more nations on each other for products or services
interdependence
foreign purchase of stocks bonds, and other financial instruments, issued by Canadian firms, which does not result in foreign management or control
Portfolio investment
A new company with shared ownership is formed by two businesses, one of which is usually located in the country where the new company is established
Joint venture
A factory owned by a company based in another country, also known as a subsidiary
branch plant 
The process of a company buying equipment, capital, goods, raw materials, or services from around the world
Global sourcing
A government imposed trade barrier that limits the amount of of product that can be imported in a certain period of time is known as a.
trade quota
Foreign subsidiaries are also referred to as
wholly owned subsidiaries
Factors that affect, the exchange rate of a particular currency include
Economic conditions within the country, including the unemployment rate
The political stability of a country
Psychological factor such as historical significance
All of the above - SELECTED
Licensing agreements
give a company permission to use a service brand-name or patent in exchange for a royalty
Which of the following does not fit the definition of a transaction?
receiving $20 from your parents to go to the movies
Which of the following is an example of a domestic market?
you sell your product to consumers in a city in the same province as it is produced
You sell your product in the same country as it is produced
Both B and C
