Vocab. Quiz 1 - International Business

Created by hsathia 

Upgrade to
remove ads

This quiz covers vocabulary learned from Day 1 through Day 4 of International Business Unit Plan. SEED 450

International Business

Includes all of the business activities necessary for creating, shipping, and selling goods and services across national borders

Exporting

The selling and shipping of products to another country

Importing

The commercial activity of buying and bringing in goods from a foreign country

Free Trade

The movement of goods and services among nations without political or economic barriers.

Comparative Advantage

The ability to produce a product most efficiently given all the other products that could be produced

Absolute Advantage

The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.

Management Contracting

Also known as outsourcing, where a foreign country produces a private-labeled good to which a domestic company then attaches its brand name or trademark

Licensing

Occurs when a firm (the licensor) grants a foreign entity (the licensee) the right to produce its product, use its production processes, or use its brand name or trademark in return for a royalty fee on every unit sold

Franchising

An organization gives another organization the right to use its name and operating methods.

Joint Venture

A partnership between a domestic firm and a foreign firm or government to undertake a major project

Foreign Direct Investment

Practice of buying permanent property and businesses in foreign nations.

Foreign Subsidiary

A company owned in a foreign country by another company, called the parent company.

Balance of Trade

The difference between a country's total exports and total imports

Trade Deficit

When a country imports more than it exports

Dumping

Selling products in a foreign country at lower prices than those charged in the producing country

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set