Chapter two international business quiz (BBB)

[blank_start]Global Sourcing[blank_end]: The process of buying equipment, capital goods, raw materials, or services from around the world.

[blank_start]Franchise:[blank_end] An agreement to an individual or group by a company to use that company’s name, services, products, and marketing.

[blank_start]Foreign Subsidiary[blank_end]: Often referred to as a wholly-owned subsidiary, a branch of a company that is run as an individual entity in a country outside of the one in which the parent company is located. (AOL China or Volkswagen AG(American Group))

[blank_start]Exchange Rate[blank_end]: The amount of one country’s currency in relation to the currency of another country.

[blank_start]Floating Rate[blank_end]: An exchange rate that is not fixed in relation to other currencies. The price at which currency with a floating rate is bought and sold fluctuates according to supply and demand.

[blank_start]Hard Currencies[blank_end]: Stable currencies such as the US and Canadian dollars, which are easily converted to other currencies on the world exchange market.

[blank_start]Joint Venture[blank_end]: A common type of international business, in which a new company with shared ownership is formed by two businesses, one of which is usually located in the country where the company is established(joint risk, more resources, increased or new market, etc.,)

[blank_start]Protectionism[blank_end]: The theory/practice of shielding domestic industries from foreign competition, often through trade barriers such as tariffs.

[blank_start]Trade Embargo[blank_end]: Government-imposed ban on the trade of a specific product or specific country; usually to protest human rights violations.

[blank_start]Trade Quotas[blank_end]: A government-imposed limit on the amount of product that can be imported in a certain period of time, which protects domestic producers by decreasing foreign competition.

[blank_start]Trade Sanctions[blank_end]: Economic action taken by a country to coerce another to conform to an international agreement or norms of conduct.

[blank_start]Currency Devaluation[blank_end]: The decrease in value of a currency because the supply of that particular currency is greater than the demand for it.

[blank_start]Currency Revaluation[blank_end]: The increase in the value of a currency because the demand for that particular currency is greater than the supply.

[blank_start]Currency Speculation[blank_end]: Buying, holding, or selling foreign currency in anticipation of its value changing in order to profit from fluctuations in the price of it.

[blank_start]Soft Currencies[blank_end]: A currency that belongs to a country with a weak economy that is small or unstable, and is therefore hard to convert.