PBMF - Ch 5 Business in a Global Economy

Goods and services produced within a country's borders and solid in another country.

• balance of trade

• imports

• exports

• raw materials

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

• trade policy

• absolute advantage

• trade agreement

• embargo

Planning and managing the flow of goods, services, and people to a destination.

• domestic business

• international trade

• trade barrier

• logistics

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

• quota

• embargo

• trade sanctions

• imports

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

• tariff

• licensing

• franchise

• logistics

Which is NOT a benefit of exporting?

• Reduce legal documents

• Realize potential new markets

• Increase profits

• Generate jobs

An absolute advantage exists when a country can produce goods more efficiently than -

• the previous year

• average

• with a floating currency

• another country

Balance of trade is -

• exports plus imports

• exports minus imports

• exports minus tariffs

• the same as the balance of payments

Most currencies today are

• fixed

• restricted

• floating

• not influenced by economic factors

Which of the following is NOT a trade barrier

• embargo

• bloc

• tariff

• quota