Unit 5

Question 1

the connection made among nations when economies freely move goods, labor, and money across borders

Answer 1

Globalization

Question 2

the shared beliefs, customs, practices, and social behavior of a particular group or nation

Answer 2

Culture

Question 3

buying and selling of goods and services across national borders

Answer 3

International trade

Question 4

all the business activity involved in making buying and selling products within national borders

Answer 4

Domestic Business

Question 5

goods and services that are produced within a countries borders, and sold in another country

Answer 5

exports

Question 6

goods, services, and capital that are brought into a country from outside its borders

Answer 6

imports

Question 7

when a country can produce goods more efficiently and at a lower cost than another country

Answer 7

Absolute Advantage

Question 8

when a country specializes in producing a product at which it is relatively more efficient

Answer 8

comparative advantage

Question 9

the difference between a nation’s exports and imports

Answer 9

balance of trade

Question 10

the total amount of money that comes into a country minus the total amount that goes out for a specific period of time.

Answer 10

balance of payments

Question 11

the cost to convert one currency into another

Answer 11

foreign exchange rate

Question 12

its exchange rate is set by the market forces of the supply and demand in the foreign exchange market

Answer 12

floating currency

Question 13

the body of laws related to the exchange of goods and services for international trade.

Answer 13

trade policy

Question 14

any gov. action taken to control or limit the amount of imports

Answer 14

trade barrier

Question 15

gov. order that prohibits trade with a foreign country

Answer 15

embargo

Question 16

embargoes that affect only certain goods

Answer 16

trade sanction

Question 17

gov. tax on imported goods

Answer 17

tariff

Question 18

a limit on the amount of product imported into a country during a specific period of time

Answer 18

quota

Question 19

a doc. listing the conditions and terms for importing and exporting products between countries

Answer 19

trade agreement

Question 20

a group of countries that has joined together to trade as if they were a single country

Answer 20

trading bloc

Question 21

planning and managing the flow of goods services and people to a destination

Answer 21

logistics

Question 22

having people from different backgrounds cultures or demographics coming together in a group

Answer 22

diversity

Question 23

the process of sending and receiving messages between people of various cultures

Answer 23

intercultural communication

Question 24

the use of English by people with a different native language

Answer 24

English as a Second Language.

Question 25

a business that operates in more than one country

Answer 25

multinational corperation

Question 26

when a business sells the right to manufacture its products or use its trademark

Answer 26

licensing

Question 27

the right to sell a company’s goods or services in a specific area

Answer 27

franchise

Question 28

the parent company that owns the chain and the brand

Answer 28

fraanchisor

Question 29

the person or company that buys the rights to use the brand

Answer 29

franchisee

Question 30

a partnership of 2 or more companies that work together for a specific business purpose

Answer 30

Joint Venture