AP Business: Competing in the Global Marketplace flashcards

Question 1

What do we call goods and services that a country makes and sells to other countries?

Accepted Answer

Exports

Question 2

What do we call goods and services a country buys from other countries?

Accepted Answer

Imports

Question 3

What term names the difference between what a country exports and what it imports, in value, over a set period?

Accepted Answer

Balance of trade

Question 4

What is it called when a country brings in more goods and services than it sends out?

Accepted Answer

A trade deficit

Question 5

What is it called when a country sends out more goods and services than it brings in?

Accepted Answer

A trade surplus

Question 6

Which record sums up a country's financial dealings with the rest of the world, comparing what it pays out with what it takes in?

Accepted Answer

Balance of payments

Question 7

In what kind of system do currency values rise and fall according to how much of each currency is wanted and available?

Accepted Answer

Floating exchange rates

Question 8

Which principle says each country gains by focusing on what it makes most easily and cheaply, then trading for the rest?

Accepted Answer

The principle of comparative advantage

Question 9

What is the policy of letting people and firms in a country buy and sell wherever they choose, with no restrictions?

Accepted Answer

Free trade

Question 10

What is the policy of shielding domestic industries from foreign competition with artificial barriers such as tariffs and quotas?

Accepted Answer

Protectionism

Question 11

What is a tax placed on goods brought in from abroad?

Accepted Answer

A tariff

Question 12

What is a cap on how much of a certain good may be brought into a country?

Accepted Answer

An import quota

Question 13

What is it called when a firm charges less for a product abroad than it does at home?

Accepted Answer

Dumping

Question 14

What is the practice of selling goods made at home to buyers in another country called?

Accepted Answer

Exporting

Question 15

What is the arrangement called in which one firm lets another use its patent, trademark or production process in return for a royalty?

Accepted Answer

Licensing

Question 16

What is it called when a foreign firm makes private-label goods that carry a domestic company's brand name?

Accepted Answer

Contract manufacturing

Question 17

What is it called when a home firm purchases a share of a foreign firm, or partners with one to create a new entity?

Accepted Answer

A joint venture

Question 18

What term describes actively owning a foreign company or its production or marketing facilities abroad?

Accepted Answer

Direct foreign investment

Question 19

What are corporations called that shift resources, goods, services and skills across borders regardless of where their headquarters are?

Accepted Answer

Multinational corporations

Question 20

What form of international trade is it when payment for goods or services is made partly or wholly in other goods and services?

Accepted Answer

Countertrade

Question 21

What is an area called in which member nations trade freely or almost freely with each other but place tariffs on goods from outside nations?

Accepted Answer

A free-trade zone

Question 22

Which organization, created by the Uruguay Round in 1994, oversees international trade, works to cut trade barriers and settles disputes between members?

Accepted Answer

The World Trade Organization (WTO)

Question 23

Which international bank gives low-interest loans, advice and information to developing nations?

Accepted Answer

The World Bank

Question 24

Which international organization promotes trade, lends to members in the short term and acts as lender of last resort for nations in trouble?

Accepted Answer

The International Monetary Fund (IMF)

Question 25

What are tariffs called that are set so imported goods look less appealing to buyers than domestic ones?

Accepted Answer

Protective tariffs

Question 26

What do we call a tariff that is lower for certain nations than for others?

Accepted Answer

A preferential tariff

AP Business: Competing in the Global Marketplace flashcards

The cards

Where this deck sits in the curriculum

How this deck was checked

Sources

More in this course