Money & Exchange Rates
The value of one country's money compared with another.
What is an exchange rate?
A tax placed on imported products that raises their final price.
What is a tariff?
Designated areas where goods can enter duty-free and duties are paid only when goods leave.
What are free-trade zones?
An organization that does business in several countries.
What is multinational company (MNC)?
Accepted behaviors, customs, and values of a society that influence business.
What is culture?
The market where banks buy and sell currencies.
What is the foreign exchange market?
A set limit on the quantity of a product that may be imported or exported.
What is a quota?
The agreement among the U.S., Mexico, and Canada that removed many tariffs and replaced NAFTA in 2020.
What is the USMCA?
The headquarters entity in an MNC's home country.
What is the parent company?
A country's systems for transportation, communication, and utilities that enable business.
What is infrastructure?
Money used to compare prices (one of the three functions of money).
What is a unit of meausure?
A complete stop of trade for certain products with a country.
What is an embargo?
The highest level of integration where duties are removed and workers can move freely between member nations.
What is a common market?
Granting the right to run a business using a company name and processes.
What is franchising?
Location, climate, terrain, seaports, and natural resources are part of this factor that shapes what companies produce and how they operate.
What is geography (geographic factors)?
Sudden government changes can reduce confidence in a country's money because of this factor.
What is political instability?
When tariffs raise prices, this usually happens to demand for imports.
What is it decreases (demand goes down)?
The global body that settles trade disputes and enforces free-trade agreements (created in 1995).
What is the World Trade Organization (WTO)?
Selling the right to use a brand name, character, or process for a fee.
What is licensing?
When a nation adopts another country's currency (like the U.S. Dollar) to stabilize trade and reduce economic trouble.
What is dollarization?