BUS-110 Chapter 4 Questions and answers with accurate rationales(PASSED)
Absolute Advantage - (ANSWER)The ability to produce something more efficiently than any other
country can.
Association of Southeast Asian Nations (ASEAN) - (ANSWER)Organization for economic, political, social,
and cultural cooperation among Southeast Asian nations.
Balance of Payments - (ANSWER)Flow of all money into or out of a country.
Balance of Trade - (ANSWER)Economic value of all products a company exports minus the economic
value of all products it imports.
Cartel - (ANSWER)Association of producers whose purpose is to control supply and prices.
Comparative Advantage - (ANSWER)Ability to produce something more efficiently than any other
country.
Embargo - (ANSWER)Government order banning exportation and/or importation of a particular product
or all products from a particular country.
European Union (EU) - (ANSWER)Agreement among major European nations to eliminate or make
uniform most trade barriers affecting group members.
Exchange Rate - (ANSWER)Rate at which the currency of one nation can be exchanged for the currency
of another nation.
Export - (ANSWER)Product made or grown domestically but shipped and sold abroad.
Foreign Direct Investment (FDI) - (ANSWER)Arrangement in which a firm buys or establishes tangible
assets in another country.
Absolute Advantage - (ANSWER)The ability to produce something more efficiently than any other
country can.
Association of Southeast Asian Nations (ASEAN) - (ANSWER)Organization for economic, political, social,
and cultural cooperation among Southeast Asian nations.
Balance of Payments - (ANSWER)Flow of all money into or out of a country.
Balance of Trade - (ANSWER)Economic value of all products a company exports minus the economic
value of all products it imports.
Cartel - (ANSWER)Association of producers whose purpose is to control supply and prices.
Comparative Advantage - (ANSWER)Ability to produce something more efficiently than any other
country.
Embargo - (ANSWER)Government order banning exportation and/or importation of a particular product
or all products from a particular country.
European Union (EU) - (ANSWER)Agreement among major European nations to eliminate or make
uniform most trade barriers affecting group members.
Exchange Rate - (ANSWER)Rate at which the currency of one nation can be exchanged for the currency
of another nation.
Export - (ANSWER)Product made or grown domestically but shipped and sold abroad.
Foreign Direct Investment (FDI) - (ANSWER)Arrangement in which a firm buys or establishes tangible
assets in another country.
