BA 101 TEST QUESTIONS AND ANSWERS LATEST UPDATE
What is international business?
Buying, selling, and trading across national boundaries.
What is absolute advantage?
Monopoly or most efficient producer of an item.
What is comparative advantage?
Specializing in products produced more efficiently or at a lower cost.
What is outsourcing?
Transferring tasks to countries with cheaper labor and supplies.
What is exporting?
Selling goods and services to foreign markets.
What is importing?
Purchasing goods and services from foreign sources.
What is balance of payments?
Difference between money flow into and out of a country.
What are the barriers to international trade?
Economic, legal, political, social, cultural, technological.
What are economic barriers?
Economic development, infrastructure, exchange rates.
What are LDC's?
Less-developed countries with low per-capita income.
What is infrastructure?
Physical facilities supporting economic activities.
What are exchange rates?
Ratio of one nation's currency to another's.
What are ethical, legal, and political barriers?
Different laws, international laws, trade restrictions, changing political climates, different
ethical values.
What is an import tariff?
Tax on goods imported into a country.
What are exchange controls?
Regulations limiting currency buying or selling.
What is a quota?
A restriction on the number of units of a particular product that can be imported into a
country.
What is an embargo?
A prohibition on trade in a particular product.
What is dumping?
The act of a country or business selling products at less than what it costs to produce
them.
What is a cartel?
A group of firms or nations that agrees to act as a monopoly and not compete with each
other, in order to generate a competitive advantage in world markets.
What is the General Agreement on Tariffs and Trade (GATT)?
What is international business?
Buying, selling, and trading across national boundaries.
What is absolute advantage?
Monopoly or most efficient producer of an item.
What is comparative advantage?
Specializing in products produced more efficiently or at a lower cost.
What is outsourcing?
Transferring tasks to countries with cheaper labor and supplies.
What is exporting?
Selling goods and services to foreign markets.
What is importing?
Purchasing goods and services from foreign sources.
What is balance of payments?
Difference between money flow into and out of a country.
What are the barriers to international trade?
Economic, legal, political, social, cultural, technological.
What are economic barriers?
Economic development, infrastructure, exchange rates.
What are LDC's?
Less-developed countries with low per-capita income.
What is infrastructure?
Physical facilities supporting economic activities.
What are exchange rates?
Ratio of one nation's currency to another's.
What are ethical, legal, and political barriers?
Different laws, international laws, trade restrictions, changing political climates, different
ethical values.
What is an import tariff?
Tax on goods imported into a country.
What are exchange controls?
Regulations limiting currency buying or selling.
What is a quota?
A restriction on the number of units of a particular product that can be imported into a
country.
What is an embargo?
A prohibition on trade in a particular product.
What is dumping?
The act of a country or business selling products at less than what it costs to produce
them.
What is a cartel?
A group of firms or nations that agrees to act as a monopoly and not compete with each
other, in order to generate a competitive advantage in world markets.
What is the General Agreement on Tariffs and Trade (GATT)?
