chapter 10 Multiple Choice

The difference between a country's total exports and total imports of goods.

An organization gives another organization the right to use its name and operating methods.

Exists when a country can produce a good or service at a lower cost than other countries. This may exist as a result from an abundance of natural resources or raw materials in a country. Example: South American countries have an absolute advantage in coffee production, and Saudi Arabia has an absolute advantage in oil production.

Selling the right to use some intangible property (production process, trademark, or brand name) for a fee or royalty. Example: The Gerber Company started selling its baby food products in Japan by this means.

Created in 1995 to promote trade around the world. With over 150 member countries, this organization settles disputes and enforces free-trade agreements between its members.

Member countries agree to remove duties and trade barriers on products traded among them. This results in increased trade between the members.

A limit on the quantity of a product that may be imported and exported within a given period.

Exists when a country specializes in the production of a good or service at which it is relatively more efficient.

The amount a country owes to other countries.

An agreement between two or more companies to share a business project