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International Business Chapter 3 – Flashcards

Sabrina Peterson

8 July 2022

question

Tariff

answer

designed to raise revenue for governments and provide a competitive advantage for domestic businesses

question

True

answer

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments. (True or False)

question

False

answer

Operation risk occurs when debtors in a country are unable to ensure timely payments of foreign currency debt service because of either transfer or exchange restrictions or a general lack of foreign currency. (True or False)

question

Subsidies

answer

_______ are special privileges offered by the government in order to attract businesses to a region or to provide them with the funding to operate successfully

question

Government restriction of trade

answer

Political issues that significantly impact global business include

question

False

answer

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

question

False

answer

In 1975, as business and policy makers' alike saw the potential growth of global business, the World Trade Organization (WTO) was created by several countries in order to monitor trade around the entire world.

question

False

answer

The Organization for Economic Cooperation and Development (OECD), the World Trade Organization, the World Bank, and the International Monetary Fund have all indicated that unstable political systems are the greatest single barrier to economic development worldwide.

question

True

answer

Global business risk is any worldwide factor—outside the laws of supply and demand—that could impact the success or failure of any venture moving into the international arena.

question

Operational

answer

Which type of risk do managers have some control over?

question

True

answer

The three types of global business risk include ownership risk, operational risk, and transfer risk.

question

Foreign Trade Zones

answer

designated areas in Customs Ports of Entry that allow commercial merchandise to receive the same customs treatment it would receive if it were outside the commerce of the United States

question

False

answer

A market economy most often refers to an economic system that is under comprehensive control and regulation by a government, in accordance with the plan of economic development.

question

True

answer

The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees.

question

Quotas

answer

typically raise the price of imports, reduce the volume of imports, and encourage demand for domestically made substitutes.

question

True

answer

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.

question

Quotas

answer

places power in the hands of customs officials

question

Administrative delays

answer

______ imposes a waiting period between the determination of a product's quality and the determination of when it can actually be sold in a market

question

Supplier's Credit

answer

loan in which the exporter is covered, but the value of the cover will be less than the value of the contract.

question

WTO

answer

is designed to monitor trade around the entire world

question

Embargoes

answer

is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals and can be motivated by political, economic, or moral reasons

question

True

answer

The United States Department of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).

question

Increasing resources or technology

answer

NOT a purpose behind embargoes

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question

Tariff

answer

designed to raise revenue for governments and provide a competitive advantage for domestic businesses

question

True

answer

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments. (True or False)

question

False

answer

question

Subsidies

answer

_______ are special privileges offered by the government in order to attract businesses to a region or to provide them with the funding to operate successfully

question

Government restriction of trade

answer

Political issues that significantly impact global business include

question

False

answer

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

question

False

answer

question

False

answer

question

True

answer

Global business risk is any worldwide factor—outside the laws of supply and demand—that could impact the success or failure of any venture moving into the international arena.

question

Operational

answer

Which type of risk do managers have some control over?

question

True

answer

The three types of global business risk include ownership risk, operational risk, and transfer risk.

question

Foreign Trade Zones

answer

designated areas in Customs Ports of Entry that allow commercial merchandise to receive the same customs treatment it would receive if it were outside the commerce of the United States

question

False

answer

A market economy most often refers to an economic system that is under comprehensive control and regulation by a government, in accordance with the plan of economic development.

question

True

answer

The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees.

question

Quotas

answer

typically raise the price of imports, reduce the volume of imports, and encourage demand for domestically made substitutes.

question

True

answer

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.

question

Quotas

answer

places power in the hands of customs officials

question

Administrative delays

answer

______ imposes a waiting period between the determination of a product's quality and the determination of when it can actually be sold in a market

question

Supplier's Credit

answer

loan in which the exporter is covered, but the value of the cover will be less than the value of the contract.

question

WTO

answer

is designed to monitor trade around the entire world

question

Embargoes

answer

is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals and can be motivated by political, economic, or moral reasons

question

True

answer

The United States Department of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).

question

Increasing resources or technology

answer

NOT a purpose behind embargoes

International Business Chapter 3 – Flashcards

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