Business Chapter 1 Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is one of the purposes of the Canada-Korea Free Trade Agreement (CKFTA)?

  • To regulate foreign investments exclusively
  • To eliminate all tariffs on goods
  • To reduce barriers to various trade sectors (correct)
  • To promote Canadian cultural activities only

How does Foreign Direct Investment (FDI) differ from portfolio investment?

  • FDI requires no control over foreign businesses
  • FDI is not regulated by the Investment Canada Act
  • FDI involves passive investments in financial assets
  • FDI involves a controlling interest in foreign businesses (correct)

What is a requirement of the Investment Canada Act (ICA) for non-Canadians?

  • They must invest in Canadian real estate
  • They must submit notifications for significant investments (correct)
  • They must only focus on portfolio investments
  • They are exempt from national security reviews

Why is retaining R&D departments important for Canadian businesses?

<p>It helps in maintaining competitive advantage and innovation (A)</p> Signup and view all the answers

What is the MAPL system used for in Canada?

<p>To determine Canadian content in music (D)</p> Signup and view all the answers

What is a primary effect of international business on the Canadian economy?

<p>Creating jobs and boosting trade (B)</p> Signup and view all the answers

What does outsourcing refer to in a business context?

<p>Hiring external parties to perform specific functions (C)</p> Signup and view all the answers

What does Brexit represent?

<p>The United Kingdom's exit from the European Union (D)</p> Signup and view all the answers

What is a trade surplus?

<p>When a country's exports exceed its imports in value (A)</p> Signup and view all the answers

What does foreign direct investment (FDI) involve?

<p>Investment in business interests located in another country (D)</p> Signup and view all the answers

Which term describes the mutual reliance between two or more entities in economic contexts?

<p>Interdependence (D)</p> Signup and view all the answers

What is the primary effect of protectionism?

<p>To restrict international trade to help domestic industries (D)</p> Signup and view all the answers

Which of the following represents a market for goods and services in countries other than one's own?

<p>Foreign markets (D)</p> Signup and view all the answers

What does the term 'balance of trade' refer to?

<p>The difference between a country's imports and exports (D)</p> Signup and view all the answers

What does a tariff represent?

<p>A tax imposed on imported goods (A)</p> Signup and view all the answers

What is meant by the term 'globalization'?

<p>The process of international integration arising from the interchange of world views, products, and ideas (A)</p> Signup and view all the answers

What is the purpose of adding value to a product or service?

<p>To attract more customers (C)</p> Signup and view all the answers

What is a licensing agreement?

<p>A contract that allows one party to use another party's intellectual property (D)</p> Signup and view all the answers

Which of the following best defines a franchise?

<p>A business model where a company allows others to use its brand (D)</p> Signup and view all the answers

What characterizes a joint venture?

<p>An agreement to pool resources for a specific project (B)</p> Signup and view all the answers

What is the main difference between a tariff and a trade quota?

<p>Tariffs are taxes, while quotas restrict quantity (A)</p> Signup and view all the answers

Which scenario best illustrates the concept of protectionism?

<p>A government implementing tariffs and quotas to support local industries (D)</p> Signup and view all the answers

Which factor does NOT influence exchange rates?

<p>Consumer behavior in retail markets (B)</p> Signup and view all the answers

What does an embargo entail?

<p>A ban on trade with a specific country (A)</p> Signup and view all the answers

What is a licensing agreement?

<p>A contract allowing the use of someone else's intellectual property. (C)</p> Signup and view all the answers

Which term describes a business model where a company allows others to use its brand?

<p>Franchise (B)</p> Signup and view all the answers

What does a tariff represent in international trade?

<p>A tax imposed on imported goods. (B)</p> Signup and view all the answers

What are trade sanctions primarily aimed at?

<p>Influencing the behavior of another country. (A)</p> Signup and view all the answers

What does currency devaluation refer to?

<p>A deliberate reduction in the exchange rate of a currency. (B)</p> Signup and view all the answers

Which of the following describes hard currencies?

<p>Currencies that are widely accepted and stable. (C)</p> Signup and view all the answers

What is meant by terms of trade?

<p>The ratio of export prices to import prices. (B)</p> Signup and view all the answers

What is a common disadvantage of investing outside one's home country?

<p>Increased exposure to foreign economic risks. (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

Study Notes

Business Fundamentals

  • Business refers to organizations involved in various commercial, industrial, or professional activities.
  • A transaction involves the exchange of goods, services, or money between parties.

Domestic and International Business

  • Domestic business operates within a country's borders, while international business involves transactions across countries.
  • Trade denotes the buying and selling of goods and services, fostering economic interdependence between entities.

Trade Dynamics

  • Trading partners are countries or organizations engaged in mutual trade.
  • Imports are goods/services received from abroad, while exports are sent to other countries.
  • Balance of trade indicates the difference between a nation's imports and exports.
  • A trade surplus occurs when exports exceed imports, providing economic advantages, while a trade deficit signifies higher imports than exports.

Market Structures

  • The domestic market comprises goods/services produced within the country.
  • A duty (tariff) is a tax levied on imported goods to protect domestic industries.
  • Foreign markets represent opportunities for selling goods/services outside the home country.

Investment Types

  • Foreign direct investment (FDI) involves controlling interests in a foreign business; contrasting with portfolio investment, which is passive and doesn’t involve control.
  • Globalization signifies increased international integration of products, ideas, and culture.

Policies and Agreements

  • Protectionism refers to government actions that limit trade to benefit local industries.
  • CETA (Canada-European Union Comprehensive Economic and Trade Agreement) reduces tariffs on 98% of EU tariff lines for Canadian exports.
  • CKFTA (Canada-Korea Free Trade Agreement) aims to reduce trade barriers across multiple sectors.

Economic Indicators

  • Gross Domestic Product (GDP) measures a nation's total production of goods and services.
  • Exchange rates reflect the value of one currency relative to another, influencing trade competitiveness.

Business Models and Agreements

  • Licensing agreements allow one party to use another's intellectual property.
  • Franchises grant rights to use a brand/business model, seen in global names like McDonald’s and Starbucks.
  • Joint ventures combine resources from multiple parties for specific projects, such as Bombardier and Airbus's collaboration on the A220.

Trade Regulations

  • Trade quotas place limits on the volume of goods imported, controlling market supply.
  • Trade embargoes impose bans on exchanges with specific nations, such as the U.S. embargo on Cuba.
  • The World Trade Organization (WTO) facilitates and regulates international trade agreements.

Currency and Economic Factors

  • Floating exchange rates fluctuate based on market demand and supply.
  • Currency devaluation intentionally lowers the exchange rate to enhance export competitiveness.
  • Hard currencies are stable and widely accepted, while soft currencies are less stable and harder to exchange internationally.

Canadian Business Context

  • Canadians invest abroad to gain access to larger markets and diverse resources, yet face risks like political instability.
  • Retaining R&D in Canada encourages innovation and competitive advantage, essential for long-term growth in a global market.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Business Unit - 1 (1) PDF

More Like This

Business Transactions Quiz
5 questions
Business Concepts Quiz
61 questions

Business Concepts Quiz

PrudentBodhran6231 avatar
PrudentBodhran6231
Introduction à la Comptabilité Générale I
38 questions
Use Quizgecko on...
Browser
Browser