Question

Embargo Joint Venture Free Trade Floating exchange rates Principle of Comparative Advantage Multi-National Corporations Balance of Trade Absolute advantage Direct Foreign Investment Protectionism

1. The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas. 2. A system in which prices of currencies move up and down based upon the demand for and supply of the various currencies. 3. The situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product. 4. The difference between the value of a country’s exports and the value of its imports during a specific time. 5. The concept that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that other countries can produce more readily and cheaply. 6. A total ban on imports or exports of a product. 7. The policy of permitting the people and businesses of a country to buy and sell where they please without restrictions. 8. Active ownership of a foreign company or of manufacturing or marketing facilities in a foreign country. 9. An agreement in which a domestic firm buys part of a foreign firm or joins with a foreign firm to create a new entity. 10. Corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located. PLEASE MATCH THESE

Answer 1

(1) The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas - Protectionism

(2) A system in which prices of currencies move up and down based upon the demand for and supply of the various currencies - Floating Exchange Rate

(3) The situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product - Absolute Advantage

(4) The difference between the value of a country’s exports and the value of its imports during a specific time - Balance Of Trade

(5) The concept that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that other countries can produce more readily and cheaply - Principle Of Comparative Advantage

(6) A total ban on imports or exports of a product - Embargo

(7) The policy of permitting the people and businesses of a country to buy and sell where they please without restrictions - Free Trade

(8) Active ownership of a foreign company or of manufacturing or marketing facilities in a foreign country - Direct Foreign Investment

(9) An agreement in which a domestic firm buys part of a foreign firm or joins with a foreign firm to create a new entity - Joint Venture

(10) Corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located - Multi-National Corporation