What is the term for the total value of a country’s exports minus the total value of its imports?
a. Trade surplus
b. Trade deficit
c. Balance of payments
d. Foreign exchange rate
Answer: b
In the context of international business, what is the primary purpose of a Letter of Credit (LC)?
a. Documenting trade statistics
b. Facilitating international communication
c. Providing a secure method of payment in international transactions
d. Establishing foreign exchange rates
Answer: c
What does the term “Dumping” refer to in the context of international trade?
a. Selling goods in a foreign market at a lower price than in the domestic market
b. Exporting goods without proper documentation
c. Storing excess inventory in foreign warehouses
d. Establishing trade barriers
Answer: a
Which international organization facilitates international monetary cooperation and exchange rate stability?
a. World Trade Organization (WTO)
b. International Monetary Fund (IMF)
c. World Bank
d. United Nations (UN)
Answer: b
What is the term for a situation where a country’s currency is worth more relative to another country’s currency?
a. Depreciation
b. Appreciation
c. Exchange rate
d. Floating currency
Answer: b
In international business, what does the term “FTA” stand for?
a. Foreign Trade Agreement
b. Free Trade Area
c. Fair Trade Agreement
d. Financial Transaction Analysis
Answer: b
What is the primary goal of the World Trade Organization (WTO)?
a. Providing financial aid to developing countries
b. Facilitating negotiations on global trade agreements
c. Promoting cultural exchange between nations
d. Regulating international telecommunications
Answer: b
In the context of international business, what does the term “Tariff” refer to?
a. A tax on imports or exports
b. A trade agreement between two countries
c. A form of international currency
d. A financial incentive for foreign investors
Answer: a
What is the term for a situation where a country exports more goods and services than it imports?
a. Trade surplus
b. Trade deficit
c. Balance of payments
d. Foreign exchange rate
Answer: a
In international business, what does the term “FDI” stand for?
a. Foreign Debt Investment
b. Free Digital Integration
c. Foreign Direct Investment
d. Financial Development Initiative
Answer: c
What does the term “Licensing” refer to in the context of international business?
a. Allowing foreign companies to operate within a country without restrictions
b. Granting permission to use intellectual property in exchange for fees or royalties
c. Establishing trade barriers between nations
d. Subsidizing domestic industries
Answer: b
Which international organization focuses on providing financial and technical assistance to developing countries?
a. World Trade Organization (WTO)
b. International Monetary Fund (IMF)
c. World Bank
d. United Nations (UN)
Answer: c
What is the term for a partnership between companies from different countries sharing resources and risks to pursue a specific project?
a. Multinational Corporation (MNC)
b. Joint Venture
c. Exporting
d. Outsourcing
Answer: b
In international business, what does the term “SME” stand for?
a. Small and Medium Enterprise
b. Strategic Market Expansion
c. Stock Market Exchange
d. Sustainable Manufacturing Environment
Answer: a
What is the primary purpose of the International Chamber of Commerce (ICC)?
a. Regulating global currency markets
b. Promoting ethical business practices and trade
c. Facilitating international immigration
d. Managing international telecommunications
Answer: b
In the context of international business, what does the term “Exchange Rate” refer to?
a. The total value of a country’s exports minus imports
b. The value of one country’s currency relative to another
c. The process of converting a domestic currency to a foreign currency
d. The rate at which commodities are traded internationally
Answer: b
What is the term for a situation where a country’s currency is worth less relative to another country’s currency?
a. Depreciation
b. Appreciation
c. Exchange rate
d. Floating currency
Answer: a
In international business, what does the term “GATT” stand for?
a. Global Agreement on Trade and Tariffs
b. General Agreement on Tariffs and Trade
c. Group of Advanced Trade Technologies
d. Global Association for Technological Transformation
Answer: b
What is the term for a trade agreement between three or more countries?
a. Bilateral Agreement
b. Unilateral Agreement
c. Multilateral Agreement
d. Regional Agreement
Answer: c
In the context of international business, what does the term “CIF” stand for in shipping and trade?
a. Cost, Insurance, and Freight
b. Customs and Import Fees
c. Cash in Finance
d. Carriage and Insurance Free
Answer: a
What is the term for a multinational company that operates in several countries and adjusts its products and practices to each local market?
a. Global Corporation
b. International Conglomerate
c. Multinational Corporation (MNC)
d. Transnational Enterprise
Answer: c
In international business, what does the term “Outsourcing” refer to?
a. Establishing operations in multiple countries
b. Subcontracting certain business functions to external providers
c. Imposing trade restrictions on foreign competitors
d. Investing in foreign stock markets
Answer: b
What is the term for a trade agreement between two countries that reduces or eliminates tariffs and other trade barriers?
a. Multilateral Agreement
b. Bilateral Agreement
c. Unilateral Agreement
d. Regional Agreement
Answer: b
In international business, what does the term “APEC” stand for?
a. Asia-Pacific Economic Cooperation
b. American-European Partnership for Commerce
c. African-Pacific Economic Consortium
d. Association of Pacific Exporting Countries
Answer: a
What is the term for the practice of a country intentionally lowering the value of its currency to make its exports more competitive?
a. Appreciation
b. Depreciation
c. Devaluation
d. Inflation
Answer: c
In international business, what does the term “Countertrade” refer to?
a. Trading goods and services without restrictions
b. Encouraging fair trade practices
c. A reciprocal arrangement where countries exchange goods and services
d. Establishing standardized trade regulations
Answer: c
What is the purpose of the North American Free Trade Agreement (NAFTA)?
a. Promoting trade between North America and Europe
b. Facilitating trade between North American countries (United States, Canada, Mexico)
c. Regulating global financial markets
d. Addressing environmental issues worldwide
Answer: b
In the context of international business, what does the term “FTA” stand for?
a. Foreign Trade Agreement
b. Free Trade Area
c. Fair Trade Agreement
d. Financial Transaction Analysis
Answer: b
What is the term for a situation where a country imposes restrictions on the quantity of a good that can be imported or exported?
a. Quota
b. Tariff
c. Subsidy
d. Embargo
Answer: a
In international business, what does the term “BOP” stand for?
a. Balance of Payments
b. Bank of the People
c. Business Operation Process
d. Bilateral Options Program
Answer: a