INTERNATIONAL BUSINESS AND TRADE (MIDTERM)
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INTERNATIONAL BUSINESS AND TRADE (MIDTERM)

Test your knowledge on the process of economic integration and the reduction of trade barriers, including tariffs, quotas, and regulatory convergence. Explore the concepts of free-trade areas and the taxation of goods crossing national boundaries. This quiz covers the fundamentals of international trade policies and agreements.

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@WellBalancedOctopus

Questions and Answers

Process in which two or more states in a broadly defined geographic area reduce a range of trade barriers to advance or protect a set of economic goals.

ECONOMIC INTEGRATION

The most basic type of economic integration is a simple free-trade area. In this form, attention is focused almost exclusively on a reduction of the tariffs and quotas that restrict trade.

SIMPLE FREE-TRADE AREA

The basic nature of simple free trade is expanded to include trade in non-goods such as services. Where a simple free-trade area need only address the question of tariffs and quotas, the trade in services and a widening of trade in goods raises questions of regulatory convergence and the harmonization of rules of operation and governance.

SECOND-GENERATION FREE-TRADE AREA

A coherent whole characterized as a collection, sequence, or progression of values or elements varying by minute degrees.

<p>CONTINUUM</p> Signup and view all the answers

Also called customs duty, tax levied upon goods as they cross national boundaries, usually by the government of the importing country.

<p>TARIFF</p> Signup and view all the answers

In international trade, government-imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time.

<p>QUOTA</p> Signup and view all the answers

Also called laissez-faire, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

<p>FREE TRADE</p> Signup and view all the answers

In industrialized nations, portion of the national money supply, consisting of bank notes and government-issued paper money and coins, that does not require endorsement in serving as a medium of exchange; among less developed societies, currency encompasses a wide diversity of items (e.g., livestock, stone carvings, tobacco) used as exchange media as well as signs of value or wealth.

<p>CURRENCY</p> Signup and view all the answers

The process by which key economic decisions are made or influenced by central governments.

<p>ECONOMIC POLICY/ECONOMIC PLANNING</p> Signup and view all the answers

Spanish acronym of Mercado Común del Sur, Portuguese Mercosul, acronym of Mercado Comum do Sul, or Common Market of the South, South American regional economic organization.

<p>MERCOSUR</p> Signup and view all the answers

Controversial trade pact signed in 1992 that gradually eliminated most tariffs and other trade barriers on products and services passing between the United States, Canada, and Mexico.

<p>NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)</p> Signup and view all the answers

Spanish Comunidad Andina (CAN), formerly (1969–97) Andean Group, South American organization founded to encourage industrial, agricultural, social, and trade cooperation.

<p>ANDEAN COMMUNITY</p> Signup and view all the answers

Organizationally designed and supervised market intended to create more efficiency choice.

<p>QUASI-MARKET</p> Signup and view all the answers

Investment in an enterprise that is resident in a country other than that of the foreign direct investor.

<p>FOREIGN DIRECT INVESTMENT (FDI)</p> Signup and view all the answers

International organization comprising 27 European countries and governing common economic, social, and security policies.

<p>EUROPEAN UNION (EU)</p> Signup and view all the answers

International organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in 1967 to accelerate economic growth, social progress, and cultural development and to promote peace and security in Southeast Asia.

<p>ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)</p> Signup and view all the answers

A trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while granting free trade among themselves.

<p>CUSTOMS UNION</p> Signup and view all the answers

French Union Économique Benelux, or Dutch Benelux Economische Unie, economic union of Belgium, the Netherlands, and Luxembourg, with the objective of bringing about total economic integration by ensuring free circulation of persons, goods, capital, and services; by following a coordinated policy in the economic, financial, and social fields; and by pursuing a common policy with regard to foreign trade.

<p>BENELUX ECONOMIC UNION (BENELUX)</p> Signup and view all the answers

International organization established to supervise and liberalize world trade. This is the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947 in the expectation that it would soon be replaced by a specialized agency of the United Nations (UN) to be called the International Trade Organization (ITO).

<p>WORLD TRADE ORGANIZATION (WTO)</p> Signup and view all the answers

Contractual agreement between states concerning their trade relationships.

<p>TRADE AGREEMENT</p> Signup and view all the answers

Set of multilateral trade agreements aimed at the abolition of quotas and the reduction of tariff duties among the contracting nations.

<p>GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)</p> Signup and view all the answers

It seeks economic cooperation among its members. Spanish Asociación Latinoamericana de Integración, organization that was established by the Treaty of Montevideo (August 1980) and became operational in March 1981.

<p>LATIN AMERICAN INTEGRATION ASSOCIATION (ALADI)</p> Signup and view all the answers

Proposed free-trade zone encompassing all of the Americas.

<p>FREE TRADE AREA OF THE AMERICAS (FTAA)</p> Signup and view all the answers

Is a necessary feature of any agreement. If each required party does not gain by the agreement as a whole, there is no incentive to agree to it.

<p>RECIPROCITY</p> Signup and view all the answers

Agreement that assuaged antagonisms between US and Great Britain

<p>JAT TREATY</p> Signup and view all the answers

Systematic record of all economic transactions.

<p>BALANCE OF PAYMENTS</p> Signup and view all the answers

Multinational organization that was established to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.

<p>ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)</p> Signup and view all the answers

It is the beliefs, values, mind-sets, and practices of a specific group of people. It includes the behavior pattern and norms of a specific group—the rules, the assumptions, the perceptions, and the logic and reasoning that are specific to a group.

<p>CULTURE</p> Signup and view all the answers

Refers to how and why we think and function. It encompasses all sorts of things—how we eat, play, dress, work, think, interact, and communicate.

<p>CULTURE</p> Signup and view all the answers

Requires that we reorient our mind-set and, most importantly, our expectations, in order to interpret the gestures, attitudes, and statements of the people we encounter.

<p>CROSS-CULTURAL UNDERSTANDING</p> Signup and view all the answers

This defines simple aspects such as how people dress (casual or formal), how they perceive and value employees, or how they make decisions (as a group or by the manager alone).

<p>ORGANIZATIONAL CULTURE</p> Signup and view all the answers

Can be viewed as the values held by a majority of the population within the nation. These values are largely unconscious and developed throughout one’s childhood.

<p>NATIONAL CULTURE</p> Signup and view all the answers

Most commonly refers to having an understanding of another culture’s values and perspective.

<p>CULTURAL AWARENESS</p> Signup and view all the answers

Defined as something that we prefer over something else—whether it’s a behavior or a tangible item

<p>VALUE</p> Signup and view all the answers

Are that each of us has been raised with a considerably different set of values from those of our colleagues and counterparts around the world.

<p>ODDS</p> Signup and view all the answers

We see the world through our own cultural shades.

<p>HUMAN NATURE</p> Signup and view all the answers

Many groups are defined by ethnicity, gender, generation, religion, or other characteristics with cultures that are unique to them.

<p>SUBCULTURES</p> Signup and view all the answers

DETERMINANTS OF CULTURE

<ol> <li>MANNERS</li> <li>MIND-SETS</li> <li>VALUES</li> <li>RITUALS</li> <li>RELIGIOUS BELIEFS</li> <li>LAWS</li> <li>ARTS</li> <li>IDEAS</li> <li>CUSTOMS</li> <li>BELIEFS</li> <li>CEREMONIES</li> <li>SOCIAL INSTITUTIONS</li> <li>MYTHS AND LEGENDS</li> <li>LANGUAGE</li> <li>INDIVIDUAL IDENTITY</li> <li>BEHAVIORS</li> </ol> Signup and view all the answers

THREE MAIN CATEGORIES FOR HOW COMMUNICATION AND INTERACTION BETWEEN CULTURES DIFFER

<ol> <li>HIGH-CONTEXT VERSUS LOW-CONTEXT COMMUNICATIONS</li> <li>SPACE</li> <li>ATTITUDES TOWARD TIME</li> </ol> Signup and view all the answers

FIVE KEY DIMENSIONS THAT INTERPRET BEHAVIORS, VALUES, AND ATTITUDES

<ol> <li>POWER DISTANCE</li> <li>INDIVIDUALISM</li> <li>MASCULINITY</li> <li>UNCERTAINTY AVOIDANCE (UA)</li> <li>LONG-TERM ORIENTATION</li> </ol> Signup and view all the answers

COMPONENTS OF COMMUNICATION

<ol> <li>VERBAL LANGUAGAE</li> <li>BODY LANGUAGE</li> </ol> Signup and view all the answers

ELEMENTS OF BUSINESS

<ol> <li>THE PACE OF BUSINESS</li> <li>BUSINESS PROTOCOL-HOW TO PHYSICALLY AND VERBALLY MEET AND INTERACT</li> <li>DECISION MAKING AND NEGOTIATING</li> <li>MANAGING EMPLOYEES AND PROJECTS</li> <li>PROPENSITY FOR RISK TAKING</li> <li>MARKETING, SALES, AND DISTRIBUTION</li> </ol> Signup and view all the answers

HIGH-CONTEXT VS. LOW-CONTEXT CULTURES

<p>High and low context refer to how a message is communicated, with high-context cultures emphasizing physical context and body language, while low-context cultures prioritize explicitness and directness. Communication between these cultures can be confusing, as low-context individuals may overlook important clues in business interactions.</p> Signup and view all the answers

POLYCHRONIC VS. MONOCHRONIC CULTURES

<p>Hall emphasized that time is a crucial concept influenced by culture. In polychronic cultures, people can multitask multiple times, unlike monochronic cultures that typically schedule events one at a time. In polychronic cultures, people value relationships and finishing tasks more than time.</p> Signup and view all the answers

LONG AND SHORT-TERM ORIENTATION

<p>Long-term orientation values persistence, thriftiness, and shame in traditional Eastern cultures, while short-term orientation values tradition for social obligations or favors. These values are evolving as people gain business experience outside their home cultures, making them interdependent and complex. Despite their constant shift, these values help understand how people from different cultures think and act.</p> Signup and view all the answers

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