Name: 
 

Business Management Chapter 4 Study Guide



Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

One reason that the United States imports a vast number of goods from other countries is because of
a.
shipping costs.
c.
unlimited resources.
b.
relations with other countries.
d.
low labor costs.
 

 2. 

To find export opportunities, many entrepreneurs use the services of a(n)
a.
shipping company.
c.
attorney.
b.
export management company.
d.
broker.
 

 3. 

Two of the main reasons for the global economy are the changes in
a.
technology and reduction in trade tariffs.
b.
importing and currency.
c.
trade barriers and technology.
d.
cultures and trade barriers.
 

 4. 

Small business owners have the ability to meet and talk with foreign agents, distributors, or potential business partners through
a.
technology.
c.
foreign joint ventures.
b.
business brokers.
d.
trade missions.
 

 5. 

Entrepreneurs who attempt to do business internationally
a.
need to be more creative.
c.
need to understand the culture.
b.
open a franchise.
d.
use the Internet.
 

 6. 

To be successful in the global market, you must be able to offer products or services
a.
at high prices.
c.
that utilize technology.
b.
at competitive prices.
d.
for children.
 

 7. 

It is important to study each country before attempting to do business there because of
a.
cultural differences.
c.
the currency.
b.
taxes.
d.
the economy.
 

 8. 

Taxes imposed by a government on imported or exported goods are called
a.
ventures.
c.
trade barriers.
b.
importing.
d.
tariffs.
 

Completion
Complete each sentence or statement.
 

 9. 

Developing countries provide a risky form of ____________________ for entrepreneurs.
 

 

 10. 

To participate in a trade mission, you will need to have a product that is on the government's ____________________ list.
 

 

 11. 

Technology has made it easier to ____________________ with people in other countries.
 

 

 12. 

According to the U.S. Department of Commerce, the hottest products for exporting are electronic equipment, chemical products, paper products, apparel, industrial machinery, computers, and ____________________ products.
 

 

 13. 

A(n) ____________________ is a partnership created by two or more companies for a specific purpose over a set period of time.
 

 

 14. 

Businesses that buy goods from other countries to sell in their own country are ____________________.
 

 

 15. 

It is wise to hire a(n) ____________________ to translate the other person's language into English when conducting business in a foreign country.
 

 

 16. 

The important thing for entrepreneurs to understand about Europe is that ____________________ among some countries are huge.
 

 

Matching
 
 
Match each item with the correct statement below.
a.
global economy
e.
Gross Domestic Product (GDP)
b.
IBEX
f.
disposable income
c.
freight forwarder
g.
trade barriers
d.
SITC codes
h.
exporting
 

 17. 

classifying goods sold in the international market
 

 18. 

money to spend after necessary expenses are paid
 

 19. 

the selling and shipping of products to another country
 

 20. 

the interconnected economies of the nations of the world
 

 21. 

taxes, quotas, and other restrictions on goods entering or leaving a country
 

 22. 

the total value of all goods produced during the year
 

 23. 

the electronic commerce systems that allow you to sell products and services online anywhere in the world
 

 24. 

handles overseas shipments for a fee
 



 
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