5 Written Questions

1. A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing
2. A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services
3. A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions
4. Buying products from another country
5. When a host government takes over a foreign subsidiary in a country

5 Matching Questions

1. North american free trade agreement (NAFTA)
2. Global business
3. Global trade
4. Trade deficit
5. Licensing

1. a An unfavorable balance of trade; occurs when value of a country's imports exceeds that of its exports
2. b A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty)
3. c An agreement that created a free trade area among the United State, Canada,and Mexico
4. d Any activity that seeks to provide goods and services to others across national borders at a profit
5. e The exchange of goods and services across national borders

5 Multiple Choice Questions

1. A company owned in a foreign country by another company,called the parent company
   1. Foreign subsidiary
   2. Join venture
   3. Free trade
   4. Nontariff barriers
2. The total value of a nation's exports compared to its imports measured over a particular period
   1. Global trade
   2. Balance of trade
   3. Free trade
   4. Balance of payments
3. The movement of goods and services amongs nations without political or economic trade barriers
   1. Gray market
   2. Embargo
   3. Free trade
   4. Global trade
4. A complete ban on the import or export of a certain product o the stopping of all trade with a particular country
   1. Tariff
   2. Embargo
   3. Dumping
   4. Importing
5. A partnership in which two or more companies (often from different countries) undertake a major project
   1. Licensing
   2. Ethnocentriciy
   3. Join venture
   4. Culture

5 True/False Questions

1. Import quota → A protectionist policy that limits the number of products in certain categories that a natin can import

   True        False

2. Harmonized tariff schedule → A schedule of costs for every product from every country that is published by the U.S. government

   True        False

3. Balance of payments → The total value of a nation's exports compared to its imports measured over a particular period

   True        False

4. Exporting → Selling products to another country

   True        False

5. Ethnocentriciy → An unfavorable balance of trade; occurs when value of a country's imports exceeds that of its exports

   True        False