Businesses and their Customers
A company or organization that sells products or services to customers
What is a business?
The exchange of a product or service
What is trade?
A process in which businesses and people focus on producing one or a few parts of an entire produt
What is specialization?
A belief that products should be free to move from country to country without trade barriers.
What is free trade?
A nation's money
What is currency?
What is a service? (think product vs service)
The interaction that occurs in the marketplace when all participating parties expect to gain
What is voluntary exchange?
It produces a higher quality product for less money and can be more profitable.
When different businesses around the world specialize, they become interdependent.
What is the result of when a business specializes in one or more things?
A rule or law that slows or prevents trading with other nations.
What is a trade barrier?
Mexico- peso, US- dollar ($), India- Rupee, Europe- Euro (pound), Japan- Yen
What is an example of a currency from a different country?
Where businesses and customers interact with one another.
What is a marketplace?
The exchange of products or services between people and businesses in different countries
What is international trade?
When businesses or people rely on each other for certain resources, products, or services
What is interdependence?
A tax on imported goods.
What is a tariff?
The price of one nation's currency in terms of another nation's currency
What is an exchange rate?
A situation in which a choice has to be made based on conflicting values
What is an ethical dilemma?
Import is when a product or service is brought in from another country, Export is when a product or service is sold to another country
What is the difference between an import and an export?
The many jobs that are required to create a film/movie.
What is an example of interdependence?
A limit on the amount of product that can be imported into a country.
What is a quota?
The difference in price might be based on the shipping cost, the taxes each location charges, or the amount people are willing to pay. Prices also vary based on demand.
Why might cost of products vary around the world?
A code of conduct that helps determine what is good, right, or proper
What is ethics?
An informal set of rules for how to act in a particular setting
What is etiquette?
Choose materials that customers prefer, materials with minimal cost, set a price that allows for a large profit margin, and create the product in an efficient manner
What are some ways to improve profit within a business?
A government action that decreases an industry's total costs, which also decreases the price of industry's goods
What is a subsody?
The exchange rate of a product or service can change daily. True or false?
True.