Chapter 3: Business in the Global Economy

An action imposed by the government to stop the export of import of a product completely

• Tariff

• Embargo

• Quota

• Trade

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

• Free Trade Zone

• Free Trade Agreements

• Common Markets

• Embargo

Restrictions to free trade

• Trade Barrier

• Tariff

• Embargo

• Quota

The value of a currency in one country compared to the value in another

• Trade Balance

• Balance of Payments

• Foreign Exchange Market

• Exchange Rate

Goods and services bought from other countries

• Exports

• Trade

• Exchange

• Imports

A country in which an MNC places business activities is called the

• Home Country

• Host Country

• Economic Community

• Free-trade zone

A tax the government places on certain imported goods

• Quota

• Embargo

• Import

• Tariff

A unique business organized by two or more other businesses to operate for a limited time and for a specific project.

• Independent Contracting

• Franchising

• Licensing

• Joint Venture

Selling the right to use some intangible property (production process, trademark, or brand name for a fee or royalty

• Franchising

• Licensing

• Joint Venture

• Strategic Alliance

A written contract granting permission to operate a business to sell products and services in a set way.

• Franchising

• Licensing

• Joint Venture

• Strategic Alliance