Internal trade barrier
What is a tariff?
A tax that governments place on certain products
What is a multinational company?
An organization that does business in several countries
What is the difference between an export and import?
import - brought in
export - shipped out
the value of a currency of one country compared with the value of another
What are the main social factors of culture?
language, religion, values, customs, social relationships
What is an embargo?
government can stop the export or import of a product
What does it mean to franchise a company?
The right to use a company's name or business process in a specific way
What is a domestic business?
the making, buying and selling of goods and services within a country
Explain what favorable and unfavorable balance of payments is.
Unfavorable currency usually declines
Country's with better education systems provide better and more.....
goods and services for there citizens
What are the three common trade barriers?
- quotas
-tariffs
- embargoes
What is joint venture?
An agreement between 2 or more companies to share a business project
What is foreign debt?
the amount a country owes to another country
Fill in the blanks.....
Higher interest rates create_____ consumer demands.
a lower
What is infrastructure?
Transportation, communication, and utility systems
What does N.A.F.T.A stand for?
north american free trade agreement
What does the international Monetary Fund promote
Economic corporations and maintains orderly system of world trade and exchanges
What is balance of trade?
the difference between a country's total imports and exports
Fill in the blanks...A reduced demand for the countries currency causes a ______ in its value?
Decline
What are the key factors of economic development?
-literacy level
-technology
-agriculteral development
What can create informal trade barriers?
culture, tradition and religions
What percent of world trade is represented by the world trade organization?
95%
What is trade surplus?
when a country exports more than it imports
What 3 functions does money serve in every economy?
1) store of value for future buying
2)median of exchange for business transactions
3)a unit of measure to value goods and services
Location, climate, terrain, seaports and natural resources in a country influence its what.....
business activity