Economics
This is the point where supply and demand meet. This is what we pay for things.
What is the equilibrium point or market price?
This is the measure of all goods and services produced by a country.
What is GDP?
These are taxes imposed by a local government on imports in order to protect local jobs.
What are tariffs?
This is a way to achieve an international presence by buying the rights to a chain operation from the franchiser.
What is international franchising?
This is Canada's largest trading partner.
What is the United States?
This form of inflation occurs when governments print more money to stimulate the economy.
What is demand-pull inflation?
This is the term used when a country can produce a good or service at a lower cost than other countries which usually is a result of a country’s natural resources or raw materials.
What is absolute advantage?
OPEC only allowing a certain amount of barrels of oil to be produced is an example of this form of trade barrier.
What is a quota?
When a company actively seeking export opportunities it's called this type of exporting.
What is direct exporting?
This is an ancient trade route that developed economic prosperity, spread disease, and shared ideas-- things that still happen today due to international trade.
What is the silk road?
This is the word used to describe the economic problem of limited resources for our unlimited needs and wants.
What is scarcity?
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.
What is comparative advantage?
These are used to influence the political decisions and actions of other nations.
What are sanctions?
This business arrangement can match the skills and expertise of two different individuals or businesses to generate more benefits for both parties.
What is a joint venture?
The Business Cycle contains these four stages.
What are trough, recovery, peak, and recession? (any order is acceptable)
The overall decrease in prices is called this.
What is deflation?
This is the term used when a country focuses its resources on a limited scope of goods or services to improve efficiency and quality. This makes global trade work.
What is specialization?
This trade barrier can change from day-to-day and make trading more expensive or cheaper. Luckily there are contracts and systems in place that can address this concern.
What are currency fluctuations?
This type of investment usually occurs when a company in one country wishes to expand into another country. This can be done through either establishing a subsidiary operation or setting up a joint venture.
What is a foreign direct investment (FDI)?
This practice takes advantage of cost differentials by relocating factories from costly countries to cheaper economies in order to sell the goods back in the West at a hefty discount (and profit).
What is offshoring?
This is used to calculate inflation.
What is the consumer price index?
This is the term used to describe the cost of an alternative that must be forgone in order to pursue a certain action. It's an important concept when determining comparative advantage.
What is opportunity cost?
This trade barrier is implemented to protect the safety of citizens of the country.
What are health and safety laws?
Companies engage in importing for these three main reasons.
What are product demand, lower costs, and production inputs.
The difference between a country’s exports and imports is called this.
What is balance of trade?