Trade Agreement Concepts
When a business sells goods to customers in another country, those sales are called _____.
Exports
During the period of easing trade tensions, President Trump visited this city, which is the capital of China.
Beijing
What is a tax placed on imported goods called?
Tariff
What does FDI stand for?
Foreign Direct Investment
What market determines the exchange rate between currencies?
Foreign Exchange Market
This type of agreement involves reciprocal trade agreements between two or more partners.
Multilateral Trade Agreement
This US leader visited Beijing in May 2026.
Donald Trump
When tariffs increase the price of imported products, who often ends up paying higher prices?
The Consumer
What is it called when a U.S. company builds a factory in China?
Foreign Direct Investment
If the U.S. dollar weakens against the Chinese yuan, U.S. goods generally become what for Chinese buyers, assuming prices remain constant?
Less Expensive
Toys and holiday decorations are examples of these products traded between countries.
Consumer Goods
In September 2026, this Chinese leader visited the White House for the first time since 2015.
President Xi Jinping
What term describes a government policy that makes foreign products less competitive in a domestic market?
A Trade Barrier
What type of business risk increases when trade tensions make it harder for companies to operate across borders?
Political Risk
What is the term for the loss of purchasing power that causes prices to rise over time?
Inflation
What do multilateral trade agreements aim to prevent?
Discrimination
The US and China agreed to lower tariffs in this kind of pause in the trade conflict.
Trade Truce
If the U.S. places tariffs on Chinese goods and China responds with tariffs on U.S. goods, what is this called?
Retaliatory Tariffs
Why might a U.S. company move production from China to another country because of tariffs?
To Reduce Costs and Avoid Tarriffs
What type of economic arrangement reduces or removes trade barriers among participating countries?
Regional Economic Integration
Trade agreements can foster integration beyond what is provided by this organization.
World Trade Organization (WTO)
On September 28, 2026, the US lowered tariffs on this much worth of Chinese goods.
$30 Billion
What economic problem can occur when tariffs increase the cost of imported materials for American manufacturers?
Higher Production Costs
What international business strategy involves adapting products or operations to meet the needs of individual countries?
Localization (Local Responsiveness)
Why might a company diversify its supply chain across multiple countries during a trade conflict?
To Reduce Dependence on One Country and Limit Trade-Related Risks