International Trade Basics
What are items transported into a country from abroad?
Imports
What occurs when one country refuses to buy goods from another?
Boycott
What does NAFTA stand for?
North American Free Trade Agreement?
Payments made by the government to help producers compete are called what?
Subsidies
Which of the following is NOT true of working abroad: learning a new language, networking few contacts, traveling, appreciating new cultures?
Network few foreign contacts
What increases the quality and productivity of manufacturing by pushing companies to improve?
Competition with other countries
An ad valorem tax is considered which type of trade barrier?
Tariff
Which is a good area for a Free Trade Zone—embassy, border, government building, or seaport?
Seaport
When inflation is low, what happens to currency value?
rising currency value
What do you call an agreement where one company allows another to use an asset in exchange for payment?
Licensing
Provide a reason international trade is important.
Cheaper availability, easier trading practices, unrestricted flow of goods,
GATT aimed to expand exchange of goods, encourage free trade, reduce tariffs, and eliminate supply & demand. Which goal is NOT correct?
Eliminate supply and demand
When countries share a common currency and similar tax rates, what level of integration is this?
economic union
What term describes refusing foreign goods entering a country
Embargo
Which is NOT a type of foreign aid: 150 Account, Foreign Assistance, Poverty-Focused Development Aid, or Food Stamps Abroad?
Food Stamps Abroad
How often does foreign exchange occur?
Every day
What agreement focuses on tariffs for agriculture, textiles, and automobiles?
General Agreement on Tariffs and Trade (GATT)
Which of the following is NOT a problem of economic integration: weak states, trade diversion, lack of fiscal resources, or single objectives?
single objectives
What term refers to selling goods in another country at below cost?
Dumping
What type of international barrier limits a specific number of goods entering a country?
Quota
Which of the following is NOT considered a debit item in the balance of trade: domestic spending abroad, imports, foreign spending in the U.S., or foreign aid?
Foreign spending in the domestic economy
When was NAFTA created?
1994
International law in global business does NOT cover which area—regulating trade, controlling tariffs, managing offshore banking, or governing business meetings?
governing business meetings
What is the term for a limit on how many goods can be imported?
Quota
Which term refers to the government giving financial support to industries to help them compete globally?
Subsidies