Ch.26- Business and the international economy

Question 1

Multinational company

Answer 1

An organisation that has operations in more than one country

Question 2

Globalisation

Answer 2

The process by which countries are connected with each other because of the trade of goods and services

Question 3

Trade bloc

Answer 3

A group of countries that trade with each other and are usually part of a free trade agreement

Question 4

Home country

Answer 4

The domestic country where a multinational starts/first establishes its operations

Question 5

Host country

Answer 5

The foreign country where a multinational sets up its operations

Question 6

Tariffs

Answer 6

A tax applied to the value of imported and exported goods

Question 7

Quota

Answer 7

A physical limit on the quantity of goods that can be imported and exported

Question 8

Exchange rate

Answer 8

The rate at which one country’s currency can be exchanged for that of another

Question 9

Depreciation

Answer 9

A currency is said to depreciate if the value of the currency goes down with respect to another

Question 10

Appreciation

Answer 10

A currency is said to appreciate if the value of the currency increases with respect to another currency