Global Business with Key Terms
Ch. 10 Business in a
Global Economy
1
A special
tax
on goods made in
one and sold in the US.
Tariff
2
The
price
at which one currency
can buy another currency.
Exchange rate
3
Products one country buys
from
another country.
imports
4
The
difference
in value between
how much a country
imports
and
how much it
exports
.
Balance of trade
5
When a country
exports
more
than
it imports.
Trade surplus
It has money left over to buy more
products.
6
When a country
imports
more
than
it exports.
Trade deficit
It means the country is in debt.
7
When the
value
of a countries
currency goes
up
compared to
another country.
Favorable exchange rate
A country with a favorable exchange rate
can buy more.
8
When the value of a countries
currency goes
down
compared to
another country.
Unfavorable exchange rate
9
A view that there should be
limits
on foreign trade in order to
protect
business at home.
protectionism
10
A view that all countries should be
free to compete anywhere in the
world without restrictions.
Free trade
11
A company that does business in
many countries and has facilities
and offices in many countries.
Multinational corporation
12
A complete ban on a product or
all the products from another
country.
embargo
13
A fixed limit set by the government
on the imports of a product.
quota
14
Products made in one country and
sold in another.
exports
15
Advantages of Free Trade
It opens up new markets
It creates new jobs
Competition forces businesses to be more
efficient and productive
Consumers have more choices
It promotes cultural understanding
Helps countries raise their standard of living
16
Disadvantages of Free Trade
Some people don’t like
That it opens up new markets
Consumers have more choices
It promotes cultural understanding
Helps countries raise their standard of living
It damages sales of our country.
17
__________puts limits on foreign
trade to protect businesses at
home.
Protectionism
18
Advantage of protectionism
Foreign competitors can lower the
demand for products made at home.
Cheap labor in other countries can lower
wages or threaten jobs at home.
A country can become too dependent
on another country.
19
Disadvantage of protectionism
Some people don’t like that
Foreign competitors can lower the demand
for products made at home.
Cheap labor in other countries can lower
wages or threaten jobs at home.
A country can become too dependent on
another country.
20
What is NAFTA
North American Free Trade Agreement
USA, Canada and Mexico
21
Difference between tariff and
quota
Tariff is a tax.
Quota is a limit.
22
What is the purpose of having an
exchange rate.
Currencies of different countries have
different values.
How much money a currency is worth
depends on how much a country wants to
buy its products.
23
If an American company wants to
import cheese from France, it has to
pay for it in French currency.
True
24
How much the currency of a country is
worth depends on how much it
charges for its products.
false
25
When the value of a country’s
currency goes down, it has a
favorable exchange rate.
true
26
Some countries choose to lower
the value of their currency to bring
in more businesses.
true
27
When a country imports more than
it exports, it has a trade surplus.
false
28
Until the 1980’s, the US had a trade
surplus.
true
29
Protectionism promotes cultural
understanding and cooperation
between countries.
false
30
NAFTA is a trade alliance between
the US and Europe.
false
31
An embargo is a special tax on
goods made in another country.
false
32
Global competition often leads to
trade disputes between countries.
true
33
Explore essential concepts in global business such as tariffs, exchange rates, imports, trade surplus, protectionism, free trade, multinational corporations, and more. Enhance your knowledge of how countries interact economically and the impact on businesses worldwide.
Uploaded on Jul 17, 2024 | 0 Views
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
1 Ch. 10 Business in a Global Economy
A special tax on goods made in one and sold in the US. 2 Tariff
The price at which one currency can buy another currency. 3 Exchange rate
Products one country buys from another country. 4 imports
The difference in value between how much a country imports and how much it exports. 5 Balance of trade
When a country exportsmore than it imports. 6 Trade surplus It has money left over to buy more products.
When a country importsmore than it exports. 7 Trade deficit It means the country is in debt.
When the value of a countries currency goes up compared to another country. Favorable exchange rate A country with a favorable exchange rate can buy more. 8
When the value of a countries currency goes down compared to another country. 9 Unfavorable exchange rate
A view that there should be limits on foreign trade in order to protect business at home. 10 protectionism
A view that all countries should be free to compete anywhere in the world without restrictions. Free trade 11
A company that does business in many countries and has facilities and offices in many countries. 12 Multinational corporation
A complete ban on a product or all the products from another country. embargo 13
A fixed limit set by the government on the imports of a product. 14 quota
Products made in one country and sold in another. 15 exports
Advantages of Free Trade 16 It opens up new markets It creates new jobs Competition forces businesses to be more efficient and productive Consumers have more choices It promotes cultural understanding Helps countries raise their standard of living
Disadvantages of Free Trade 17 Some people don t like That it opens up new markets Consumers have more choices It promotes cultural understanding Helps countries raise their standard of living It damages sales of our country.
__________puts limits on foreign trade to protect businesses at home. 18 Protectionism
Advantage of protectionism 19 Foreign competitors can lower the demand for products made at home. Cheap labor in other countries can lower wages or threaten jobs at home. A country can become too dependent on another country.
Disadvantage of protectionism 20 Some people don t like that Foreign competitors can lower the demand for products made at home. Cheap labor in other countries can lower wages or threaten jobs at home. A country can become too dependent on another country.
What is NAFTA 21 North American Free Trade Agreement USA, Canada and Mexico
Difference between tariff and quota 22 Tariff is a tax. Quota is a limit.
What is the purpose of having an exchange rate. 23 Currencies of different countries have different values. How much money a currency is worth depends on how much a country wants to buy its products.
If an American company wants to import cheese from France, it has to pay for it in French currency. 24 True
How much the currency of a country is worth depends on how much it charges for its products. 25 false
When the value of a countrys currency goes down, it has a favorable exchange rate. 26 true
Some countries choose to lower the value of their currency to bring in more businesses. 27 true
When a country imports more than it exports, it has a trade surplus. 28 false
Until the 1980s, the US had a trade surplus. 29 true
Protectionism promotes cultural understanding and cooperation between countries. 30 false
NAFTA is a trade alliance between the US and Europe. 31 false
An embargo is a special tax on goods made in another country. 32 false
Global competition often leads to trade disputes between countries. 33 true
