Unit 3: Competition

In international trade, the main purpose of a quota is to

• limit the quantity of a product that can be imported into a country

• create a positive impact on the foreign exchange rate

• generate tax income from imported goods

• all of the above

Importing and exporting are business activities that take place within

• the United States

• nonprofit organizations

• the global economy

• countries with a command economy

Which of the following are potential obstacles for entrepreneurs who want to conduct international trade?

• trade barriers

• cultural differences between countries

• tariffs

• all of the above

The foreign exchange rate is

• the rate at which countries do business

• the value of one currency in relation to another

• the value of the dollar in relation to foreign currencies

• the fair trade value of currencies

Fair trade is a policy that

• is encouraged by private organizations

• helps developing nations

• links small producers with foreign merchants

• all of the above

Because both UPS and FedEx provide overnight delivery services, they are an example of

• indirect competitors

• strong direct competitors

• partners

• weak direct competitors

Coca-Cola and Honest Tea (which sells organic teas by the bottle) are an example of

• indirect competitors

• strong direct competitors

• partner

• weak direct competitors

When engaged in international trade, business etiquette includes being respectful of a nation's

• language

• customs

• attitudes

• all of the above

Market share is

• your target market

• the biggest percentage of your total market

• the percentage of your target market that is buying from your business

• your target market minus your competitors' customers

The market share percentage for a business that has achieved $500,000 in total sales in a $2 million market is

• 50%

• 25%

• 40%

• 2%