AFM 131 MODULE 1-6 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS GRADED A++
Globalization
the process by which businesses or other organizations develop international influence
or start operating on an international scale.
free trade
the movement of goods and services among nations without political or economic
barriers
Balance of Trade
the difference between a country's total exports and total imports
Balance of Payment
the difference between the flow of money into and out of a country
multinational corporation
An organization that manufactures and markets products in many different countries
and has multinational stock ownership and multinational management
Licensing
A company (licensor) allows a foreign company (licensee) to produce and sell its
products for a fee (a royalty)
Exporting
selling products to another country
Franchising
, Selling the rights to use an established business name and sell a product/service to
others in a given territory in a specified manner
contract manufacturing
Foreign company manufactures goods to which a domestic company then attaches its
own brand name or trademark
joint venture
A partnership where two or more companies join to undertake a major project
strategic alliance
A long-term partnership between two or more companies established to help each
company build competitive market advantages.
Foreign Direct Investment
Buying permanent property in a foreign market
sociocultural forces
influences and trends originating in a country's, a society's, or a culture's human
relationships and values that may affect an organization
trade protectionism
the use of government regulations to limit the import of goods and services
Tariffs
Taxes on imported goods
import quota
A limit on the number of products in certain categories a nation can import
Embargo
an official ban on trade or other commercial activity with a particular country.
WITH COMPLETE SOLUTIONS GRADED A++
Globalization
the process by which businesses or other organizations develop international influence
or start operating on an international scale.
free trade
the movement of goods and services among nations without political or economic
barriers
Balance of Trade
the difference between a country's total exports and total imports
Balance of Payment
the difference between the flow of money into and out of a country
multinational corporation
An organization that manufactures and markets products in many different countries
and has multinational stock ownership and multinational management
Licensing
A company (licensor) allows a foreign company (licensee) to produce and sell its
products for a fee (a royalty)
Exporting
selling products to another country
Franchising
, Selling the rights to use an established business name and sell a product/service to
others in a given territory in a specified manner
contract manufacturing
Foreign company manufactures goods to which a domestic company then attaches its
own brand name or trademark
joint venture
A partnership where two or more companies join to undertake a major project
strategic alliance
A long-term partnership between two or more companies established to help each
company build competitive market advantages.
Foreign Direct Investment
Buying permanent property in a foreign market
sociocultural forces
influences and trends originating in a country's, a society's, or a culture's human
relationships and values that may affect an organization
trade protectionism
the use of government regulations to limit the import of goods and services
Tariffs
Taxes on imported goods
import quota
A limit on the number of products in certain categories a nation can import
Embargo
an official ban on trade or other commercial activity with a particular country.
