Unit 3 Test Flashcards
Goods and services bought from other countries
Imports
Goods and services sold to other countries
Exports
The difference between a country’s total exports and total imports
Balance of trade
The difference between the amount of money that comes into a country and the amount that goes out of a country
Balance of payments
The value of a currency in one country compared with the value in another
Exchange rate
Restrictions to free trade
Trade barriers
A government-set limit on the quantity of a product that may be imported or exported within a given period
Quota
A tax that a government places on certain imported products.
Tariff
An action imposed by the government to stop the export or import of a product completely
Embargo
A factor that supports international trade in industrialized countries, including a nation’s transportation, communication, and utility systems
Infrastructure
A selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing, usually near a seaport or airport
Free-trade zone
(True or False)
Infrastructure is a significant factor that affect the economic development of a country
True
(True or False)
An informal trade barrier is created by government actions
False
A country that wishes to enhance international trade activities would most likely use:
Common market
An organization that does business in several countries. It usually consists of a home country and divisions or separate companies in one or more host countries.
Multinational company (MNC)
A unique business organized by two or more other businesses to operate for a limited time and for a specific project. It is a type of partnership.
Joint venture
Protects the creative work of authors, composers, and artists
Copyright
Gives the inventor the sole right to make, use, or sell the item for 20 years
Patent
A word, letter, or symbol linked with a specific company or product
Trademark
An agreement to exchange goods or services for something of value, usually money
Contract
Principles of mortality or rules of conduct
Ethics
A written set of principles and rules intended to serve as a guideline for determining appropriate ethical behavior for those individuals under its authority
Code of Ethics
A natural resource that cannot be replaced when used up
Nonrenewable resource
The duty of a business to contribute to the well-being of a community
Social responsibility
