Business Theme 4 re-cap

Selling goods and services to another country is considered?

• Exporting
• Importing

Which of the following would be considered an international business transaction?

• purchasing products in one country and assembling them in the same country

• recruiting employees internationally

• borrowing money from a major bank to finance capital improvements

• shipping finished products from one country to another for retail sale

The Internet has helped small businesses compete in global markets because it ________

• allows them to establish a physical presence in each country

• avoids transactions involving foreign exchange

• reduces entry costs

• eliminates price controls

Which of the following is a primary reason that firms acquire resources and supplies from other countries?

• comply with trade regulations

• minimize resource competition

• decrease shipping and handling costs

• obtain items unavailable in home country

Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations is a(n) ________.

• multinational corporation

• multinational enterprise

• international business

• franchise

Firms that enter new markets can benefit from economies of scale and diversified revenue streams.

• True

• False

All of the following are benefits of international business except

• expanded business opportunities
• increased sources of raw materials
• decreased competition
• improved political relationships

Making, buying, and selling goods and services within a country is called

• international business
• global dependency
• domestic business
• none of these

Setting a limit on the quantity of a product that may be imported or exported within a given period to regulate international trade is called?

• Tariff
• Embargo
• Quota
• Deal

___________ is a tax that a government places on certain imported products

• Tariff
• Embargo 
• Quota
• Deal