International Business Basics
Items bought from other countries and items sold to other countries
What are imports and exports?
Understanding location, climate, terrain, waterways and natural resources make up this factor of the International Business Environment.
What is Geography?
These are also called MNCs.
What are multinational companies?
These types of trade barriers are created by government actions.
What are formal trade barriers?
NAFTA and the USMCA are examples of this.
What is Free-Trade Agreement or Foreign Trade Agreement? (either answer will work)
The making, buying and selling of goods and services within a country.
What is domestic business?
Understanding technology, education and infrastructure make up this factor of the International Business Environment.
What is economics (or economic development)?
Uses the same product and marketing strategy worldwide.
What is global strategy?
Culture, tradition and religion create these type of trade barriers.
What are informal?
Free trade zones, Free-trade agreements, and common markets are all used to promote this.
What is International trade?
Bananas, coffee, cocoa, spices, tea and silk are all these in the U.S.
What are imports?
This is a nation's transportation, communication and utility systems.
What is infrastructure?
The right to use a company name or business process in a specific way.
What is franchising?
This type of trade barrier puts a limit on the quantity that may be imported or exported.
What are quotas?
This was also called the International Bank for Reconstruction and Development.
What is the World Bank?
This exists when a country can produce a good or service at a lower cost that other countries, and may result from an abundance of natural resources or raw materials.
What is absolute advantage?
Understanding language, family, religion, customs, traditions and food are knowledge of this factor of the International Business Environment.
What is culture (or cultural influences)?
An agreement between two or more companies to share a business project.
What is a joint venture?
This trade barrier completely stops the import or export of a product.
What is an embargo?
This is a selected area where items can be imported duty free and then stored.
What is a free-trade zone or foreign trade zone? (either answer will work)
This occurs when business activities needed for creating, shipping and selling goods and services cross national borders.
What is International Business?
This is how many factors you need knowledge of in the International Business Environment.
What is 4?
Settles trade disputes and enforces free-trade agreements between its members.
What is the World Trade Organization or WTO?
This trade barrier is a tax placed on certain imported products.
What is a tariff?
The European Union (EU) and the Latin American Integration Association (LAIA) are both examples of this.
What are common markets?