Vocab

Question 1

International business

Answer 1

Business activities needed for creating, shipping and selling goods and services across national borders

Question 2

Absolute advantage

Answer 2

Country can produce a good or service at a lower cost than other countries

Question 3

Import

Answer 3

Items bought from another country

Question 4

Export

Answer 4

Items sold to another country

Question 5

Comparative advantage

Answer 5

Situation in which a country specializes in the production of goods and services at which it is relatively more efficient

Question 6

Balance of trade

Answer 6

Difference between a country’s total exports and total imports

Question 7

Trade surplus

Answer 7

Country exports (sells) more than it imports (buys)

Question 8

Trade deficit

Answer 8

Country buys more than it sells

Question 9

Balance of payments

Answer 9

Difference between the amount of money that comes into a country and the amount that goes out of it

Question 10

Foreign exchange rates

Answer 10

Value of a currency in one country compared with the value in another

Question 11

Balance of payments

Answer 11

Difference between the amount of money that comes into a country and the amount that goes out of it

Question 12

Economic conditions

Answer 12

How is economy doing, inflation, interest rates

Question 13

Political stability

Answer 13

How is government doing, political changes

Question 14

Infrastructure

Answer 14

Nations transportation, communications, and utility systems

Question 15

Trade barrier

Answer 15

Restrictions to free trade

Question 16

Quota

Answer 16

To regulate international trade, governments set a limit of the quantity of a product that may be imported or exported within a given period

Question 17

Tariffs

Answer 17

A tax that the government places on certain imported products

Question 18

Embargo

Answer 18

Stop the export or import of a product completely

Question 19

Geography

Answer 19

Location, climate, terrain, seaports, and natural resources influence business activity

Question 20

Cultural influences

Answer 20

Language, religion, values, customs, social relationships

Ex. Hug, hand shake

Question 21

Economic development

Answer 21

Literacy level
Technology
Agriculture dependency

Question 22

Political and legal concerns

Answer 22

Individuals in the US have a great deal of independence

Question 23

Free trade zones

Answer 23

Used to promote international business in a selected area where products can be imported duty-free and then stored, assembled, and or used in manufacturing

Question 24

Free trade agreements

Answer 24

Member countries agree to remove duties and trade barriers on products traded among them

Question 25

Common markets

Answer 25

Allows companies to invest freely in each members country

Question 26

Multinational company

Answer 26

Organization that does business in several countries

Question 27

Joint venture

Answer 27

Agreement between two or more companies to share a business project

Question 28

Home country

Answer 28

Parent country

Question 29

Host country

Answer 29

Where businesses are placed

Question 30

Global strategy

Answer 30

Uses the same product and marketing strategy worldwide

Question 31

Multinational strategy

Answer 31

Treats each country market differently

Question 32

Licensing

Answer 32

Allows companies to produce items in other countries without being actively involved

Question 33

Franchising

Answer 33

Allows organizations to enter into contracts with people in other countries to set up a business that looks and runs like the parent company

Question 34

Domestic and international businesses are referred to as…

Answer 34

Foreign and world trade

Question 35

3 factors affecting currency values

Answer 35

Balance of payments
Economic conditions
Political stability

Question 36

2 types of trade barriers

Answer 36

Formal and informal

Question 37

4 main elements of the international business environment

Answer 37

Geography
Cultural influences
Economic development
Political and legal concerns

Question 38

3 international trade organizations

Answer 38

World trade organization
International Monetary Fund
World bank

Question 39

Domestic business

Answer 39

Making, buying, selling of goods and services within a country