The World of International Trade
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Questions and Answers

Which of the following is a form of financial assistance provided by the government to producers in order to lower their prices and regain competitiveness in the market?

  • Export subsidies (correct)
  • Tariffs
  • Embargoes
  • Import quotas

    • Dumping is the practice of charging less than the actual costs or less than the home-country price for goods sold in other countries.

  • False
  • True (correct)

    • Which of the following is a regional organization that promotes trading among member nations?

  • The World Bank
  • Licensing
  • The World Trade Organization (correct)
  • The International Monetary Fund (IMF)

    • What is the term for the practice of limiting the amount of particular goods that countries allow to be imported during the year?

    <p>Import quotas</p> Signup and view all the answers

    Which of the following is NOT one of the strategic approaches to international markets?

    <p>Foreign direct investment (FDI)</p> Signup and view all the answers

    Which of the following is a complete ban on the import or export of certain products or even all trades between countries?

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

    What is the term for the buying of goods and services from a supplier in another country?

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

    Which of the following is an agreement to produce and market another company's product in exchange for a royalty or fee?

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

    Which of the following is NOT one of the world's most famous international trade organizations?

    <p>Multinational companies (MNC's)</p> Signup and view all the answers

    What is the term for the selling of goods and services to a client in another country?

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

    Which one of the following is a reason why countries trade internationally?

    <p>To achieve economic globalization</p> Signup and view all the answers

    What is the term used to describe savings from buying parts and materials, manufacturing or marketing in large quantities?

    <p>Economies of scale</p> Signup and view all the answers

    What is the measurement of a nation's total exports minus its total imports over a period of time called?

    <p>Balance of trade</p> Signup and view all the answers

    What is the term used to describe the rate at which the money of one country is traded for the money of another?

    <p>Exchange rate</p> Signup and view all the answers

    What is the total flow of money into a country minus the total flow of money out of the country during a specific period of time called?

    <p>Balance of payments</p> Signup and view all the answers

    What do we call the international trade that takes place without restrictive measures?

    <p>Free trade</p> Signup and view all the answers

    What are the reasons for countries to trade internationally?

    <p>To achieve economic globalization</p> Signup and view all the answers

    What is the term used to describe the savings from buying parts and materials, manufacturing or marketing in large quantities?

    <p>Economies of scale</p> Signup and view all the answers

    What is the term used to describe a country's total exports minus its total imports over a period of time?

    <p>Balance of trade</p> Signup and view all the answers

    What is the term used to describe the rate at which one country's money can be exchanged for another country's money?

    <p>Exchange rate</p> Signup and view all the answers

    What is the term for the rules or standards governing the conduct of a person or group?

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

    What is the term for the degree to which affected parties can observe relevant aspects of transactions or decisions?

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

    What is the term for the use of undisclosed information that someone gains via his job to benefit from fluctuations in the stock market?

    <p>Insider trading</p> Signup and view all the answers

    What is a written statement that establishes the principles that guide an organization’s decisions?

    <p>Code of ethics</p> Signup and view all the answers

    What is the term for the disclosure of information by a company insider that exposes illegal or unethical behavior by others within the organization?

    <p>Whistle-blowing</p> Signup and view all the answers

    What is a situation in which an individual or a group makes a decision that is immoral, illegal or unethical?

    <p>Ethical-lapse</p> Signup and view all the answers

    What is a situation in which more than one side of an issue can be supported with valid arguments?

    <p>Ethical dilemma</p> Signup and view all the answers

    What is the term for situations in which competing loyalties can lead to ethical lapse?

    <p>Conflicts of interest</p> Signup and view all the answers

    What is the idea that business has obligations to society beyond the pursuit of profits?

    <p>Corporate Social Responsibility (CSR)</p> Signup and view all the answers

    What is the donation of money, time, goods or services to charitable or educational institutions?

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

    Which of the following best defines strategic CSR?

    <p>Social contributions that are directly aligned with a company's overall business strategy</p> Signup and view all the answers

    What are NGOs?

    <p>Nonprofit groups that provide charitable services or promote social and environmental causes</p> Signup and view all the answers

    What is cap and trade?

    <p>An environmental policy that gives companies some freedom in addressing the environmental impact of specified pollutants</p> Signup and view all the answers

    How is sustainable development defined?

    <p>Operating business in a sustainable way that minimizes pollution and resource waste</p> Signup and view all the answers

    What is consumerism?

    <p>A movement that pressures business to consider needs and interests</p> Signup and view all the answers

    What is identity theft?

    <p>A crime in which thieves steal personal information and use it to take out loans and commit other frauds</p> Signup and view all the answers

    What is discrimination?

    <p>Denial of opportunities to individuals based on characteristics unrelated to their job performance</p> Signup and view all the answers

    What is the main focus of strategic CSR?

    <p>Aligning social contributions with a company's overall business strategy</p> Signup and view all the answers

    What do NGOs do?

    <p>Provide charitable services or promote social and environmental causes</p> Signup and view all the answers

    What is the goal of cap and trade?

    <p>To address the environmental impact of specified pollutants with flexibility for companies</p> Signup and view all the answers

    Study Notes

    International Trade and Finance

    • Subsidy is a form of financial assistance provided by the government to producers to lower their prices and regain competitiveness in the market.
    • Dumping is the practice of charging less than the actual costs or less than the home-country price for goods sold in other countries.

    Regional Organizations

    • A regional organization promotes trading among member nations.

    Trade Restrictions

    • Quota is the practice of limiting the amount of particular goods that countries allow to be imported during a year.
    • Embargo is a complete ban on the import or export of certain products or even all trades between countries.

    International Business

    • Import is the buying of goods and services from a supplier in another country.
    • Export is the selling of goods and services to a client in another country.
    • Licensing is an agreement to produce and market another company's product in exchange for a royalty or fee.

    International Trade Organizations

    • The World Trade Organization (WTO) is one of the world's most famous international trade organizations.

    Reasons for International Trade

    • Countries trade internationally because of differences in costs, availability of resources, and market sizes.

    International Finance

    • Economies of scale refer to the savings from buying parts and materials, manufacturing or marketing in large quantities.
    • Balance of trade is the measurement of a nation's total exports minus its total imports over a period of time.
    • Exchange rate is the rate at which the money of one country is traded for the money of another.
    • Net inflow of capital is the total flow of money into a country minus the total flow of money out of the country during a specific period of time.

    Free Trade

    • Free trade refers to international trade that takes place without restrictive measures.

    Business Ethics

    • Ethics refers to the rules or standards governing the conduct of a person or group.
    • Transparency refers to the degree to which affected parties can observe relevant aspects of transactions or decisions.
    • Insider trading is the use of undisclosed information that someone gains via his job to benefit from fluctuations in the stock market.
    • Code of ethics is a written statement that establishes the principles that guide an organization’s decisions.
    • Whistleblowing is the disclosure of information by a company insider that exposes illegal or unethical behavior by others within the organization.
    • Ethical dilemma is a situation in which an individual or a group makes a decision that is immoral, illegal or unethical.
    • Moral hazard is a situation in which more than one side of an issue can be supported with valid arguments.
    • Conflict of interest is a situation in which competing loyalties can lead to ethical lapse.
    • Corporate social responsibility (CSR) is the idea that business has obligations to society beyond the pursuit of profits.
    • Philanthropy is the donation of money, time, goods or services to charitable or educational institutions.
    • Strategic CSR is a long-term investment in social and environmental initiatives that benefits both the business and society.

    NGOs and Sustainability

    • NGOs (Non-Governmental Organizations) are organizations that operate independently of any government.
    • Cap and trade is a system that limits the amount of pollution allowed and permits companies to buy and sell the right to pollute.
    • Sustainable development is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs.
    • Consumerism is the practice of promoting the purchase of goods and services.
    • Identity theft is the unauthorized use of another person's personal information.
    • Discrimination is the unfair treatment of a person or group based on certain characteristics.

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    Description

    Test your knowledge of international trade and economic globalization with this quiz! Learn about the reasons nations trade, including focusing on relative strengths, expanding markets, and pursuing economies of scale.

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