BUS Management Exam Two Practice

Global Business is the...

• buying and selling of goods and services

• buying and selling of goods and services by people from different countries

• buying and selling of goods and services by organizations from different countries

One of the biggest challenges with global business is:

• How can you be sure you will be profitable?

• How can you be sure that running your business in one country will be the right way to run it in another?

• How can you be sure that other countries will like your business?

Multinational corporations (MNCs) are corporations that own businesses in two or more_________________.

______________________ ____________________ investment occurs when a company builds a new business or buys an existing business in a foreign country.

Tariffs are...

• a direct tax on imported goods

• an indirect tax on exported goods

• a direct tax on exported goods

• an indirect tax on imported goods

Which of the following are non- tariff barriers to trade?

• quotas

• government subsidies

• competition

An example of a ________________ agreement is the World Trade Organization

_________________ is the protection of intellectual property (which is an important issue in global trade).

Zones in which tariff and nontariff barriers are reduced or eliminated for countries within the trading zone.

• regional trading zones

• international trading zones

• local trading zones

• trading zones

____________ consistency: a multinational company uses the same rules, guidelines, policies, and procedures to run all offices.

• global

• local

• trade

• office