FREE BUSINESS AND STUDY GAMES ABOUT

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FREE BUSINESS AND STUDY GAMES ABOUT

UNDERSTANDING BUS3 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -35 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: A country that has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries

Answer:

absolute advantage Question 2: an organization that manufactures and markets products in man different countries and has multinational stock ownership and multinational management

Answer:

multinational corporation Question 3: A foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark

Answer:

contract manufacturing Question 4: a company owned in a foreign country by another company (parent company)

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foreign subsidiary

Question 5: A firm allows a foreign company to produce its product in exchange for a fee or royalty

Answer:

licensing Question 6: the total value of a nations exports compared to its imports measured over a particular period of time

Answer:

balance of trade Question 7: The difference between money coming into a country and money leaving the country plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment

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balance of payments Question 8: lowering the value of a nation's currency relative to other currencies

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devaluation Question 9: The movement of goods and services among nations without political or economic barriers

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free trade

Question 10: Buying products from another country

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Importing Question 11: 1948 agreement that established an inter nation forum for negotiating mutual reductions in trade restrictions

Answer:

GATT general agreement on tariffs and trade

Question 12: Selling products to another country

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Exporting Question 13: agreement that created free trade between the US, canada, and mexico

Answer:

NAFTA

Question 14: the buying of permanent property and businesses in foreign nations

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foreign direct investment Question 15: international organization that replaced GATT and assigned the duty to mediate trade disputes among nations

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WTO World trade organizations Question 16: investment funds controlled by governments holding large stakes in foreign companies

Answer:

sovereign wealth funds

Question 17: A company exports exceeds their imports

Answer:

trade surplus Question 18: The US is the _______ importing nation and the ________ exporting nation?

Answer:

highest and second highest

Question 19: taxes on imports

Answer:

tariffs

Question 20: jobs are lost permanently

reduces product quality communication challenges

Answer:

cons of offshore outsourcing

Question 21: Having more money flowing into a country than out of the country

Answer:

favorable balance of trade

Question 22: Having more money flowing out of a country than in

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trade deficit Question 23: Giving the rights to use the business name and sell a product or service in a given territory

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Franchising Question 24: a complex form of bartering in which several countries may be involved each trading goods for goods or services for services

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countertrading Question 25: a complete ban on the import or export of a certain product or the stopping of all trade in a country

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embargo Question 26: the use of government regulations to limit the imports of goods and services

Answer:

trrade protectionism