WEEK 3

Question 1

refers to commerce in which goods, services or resources across the borders of two or more nations.

Answer 1

International Business

Question 2

is a border than international business.
Culture, ideas, and beliefs are exchanged in addition to goods, services, and resources.

Answer 2

Globalization

Question 3

when an entity (country, region, company or individual)

Answer 3

Absolute Advantage

Question 4

when an entity can produce a particular goo or service at a lower relative opportunity cost compared to another entity.

Answer 4

Comparative Advantage

Question 5

is the difference between the value of a country’s imports and exports.

Answer 5

Balance of Trade

Question 6

occurs when a nation imports more than it exports.

Answer 6

Trade Deficit

Question 7

occurs when a nation exports more than it imports.

Answer 7

Trade Surplus

Question 8

is the difference between the total flow of money coming into country and the total flow of money going out of a country during a period of time.

Answer 8

Balance of Payments

Question 9

is a system of exchange in which goods and services are used as payment rather than money.

Answer 9

Countertrade

Question 10

exchange of goods or services directly for other goods or services without the use of money as means of purchase or payment.

Answer 10

Barter

Question 11

sale of goods and services to one company in another country

Answer 11

Counterpurchase

Question 12

a firm builds a plant in a country, or supplies technology, equipment, training, or other services to the country, and agrees to take a certain percentage of the plant’s output as partial payment for the contract.

Answer 12

Buyback

Question 13

COMMON TYPES OF COUNTERTRADE

Answer 13

Barter
Counterpurchase
Buyback

Question 14

taking goods that were produced within a company’s home country and shipping them to another country.

Answer 14

Exporting

Question 15

A good is brought into a jurisdiction, especially across a national border, from an external source.

Answer 15

Importing

Question 16

contacts out a business process to another party and may include either or both foreign and domestic contracting.

Answer 16

Outsourcing

Question 17

is the relocation of a business process from one country to another.

Answer 17

Offshoring

Question 18

usually cover property that is intangible, such as trademarks, images, patents, or production techniques.

Answer 18

License Agreement

Question 19

a party (franchisee) acquires access to the knowledge, processes, and trademarks of a business (he franchisor) in order to sell a products or service under the business’s (franchise’s) name.

Answer 19

Franchising Agreement

Question 20

is an investment in the form of controlling ownership in a business enterprise in one country by an entity based in another country.

Answer 20

Foreign Direct Investment

Question 21

TWO FORMS OF FDI

Answer 21

Greenfield Ventures
Mergers/Acquisition

Question 22

establishes a new business that is owned by two or more otherwise independent businesses.

Answer 22

Joint Ventures

Question 23

is formed between two or more corporations, each based in their home country, for a specific period of time.

Answer 23

Strategic Alliance

Question 24

5 Types of Global Trade Forces

Answer 24

• Sociocultrural Differences
• Political Economy
• Legal Differences
• Physical and Environmental forces
• Tariff and non-tariff restrictions

Question 25

a type of tax that is levied on goods and services coming into a country.

Answer 25

Import Tariffs

Question 26

a limit on the amount of quantity of a good or services that can be imported into a country.

Answer 26

Import Quotas

Question 27

set by the government and require foreign businesses to use a certain quantity of local labor, resources, and/or suppliers in their operations.

Answer 27

Local Content Requirements

Question 28

official ban on trade or other commercial activity with a particular country.

Answer 28

Embargos