Podcast
Questions and Answers
SDN BHD was invented to overcome high capital costs in the interwar years and involves _________ decision making.
SDN BHD was invented to overcome high capital costs in the interwar years and involves _________ decision making.
decentralising
Tariffs impose a tax by the government on imports and exports of ________.
Tariffs impose a tax by the government on imports and exports of ________.
goods
An ________ is an official ban on trade with a particular country.
An ________ is an official ban on trade with a particular country.
embargo
Joint ventures involve a type of equity arrangement where partners may share ________.
Joint ventures involve a type of equity arrangement where partners may share ________.
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Vertical integration allows a firm to take ownership of ________, distributors, or retail locations.
Vertical integration allows a firm to take ownership of ________, distributors, or retail locations.
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Study Notes
SDN BHD
- Invented to overcome high capital costs in interwar years
- Focuses on technology and knowledge
- Decentralizes decision-making
Tariffs
- Taxes imposed by governments on imports/exports of goods
- Source of revenue for governments
- Regulate foreign trade policies to protect domestic industries
Embargo
- Official ban on trade with a particular country
- Trade restriction
- Example: USA imposed embargo on Cuba (1960), forbidding most American exports and imports with Cuba
Joint Ventures
- Type of equity arrangement (Foreign Direct Investment - FDI)
- Shares ownership
- Transfers technology, assets, and labor
- Advantage over high-tech or market knowledge
Vertical Integration
- Firm takes ownership of suppliers, distributors, or retail locations
- Greater control over the supply chain
- Increased efficiency and reduced costs
Economies of Scale
- Obtaining lower costs by increasing a firm's production
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Description
This quiz covers essential concepts in international trade, including tariffs, embargoes, and joint ventures. You'll also learn about capital costs, vertical integration, and economies of scale, highlighting their importance in a global business environment. Test your knowledge and understanding of these key trade strategies.
