A Regional Trade Agreement Is

question 78

Multiple Choice

A regional trade agreement is

• A) a document signed by representatives of many nations to express their acceptance of the principles set out in the document.
• B) an agreement that a special arrangement such as a reduced tariff offered to one country in the interests of opening up a market must be offered to all other members.
• C) an agreement that,once a good has entered a country,it must be treated as equivalent to a domestically-produced good of the same type for purposes of taxation and regulation.
• D) the practice of discouraging both export subsidies and the dumping of products on foreign markets at below cost in order to gain market share.
• E) an agreement that aims to reduce restrictions on international trade between two or more countries.

Recognize the concept of cultural differences and their impact on international business.

Describe key economic theories and their relevance to global commerce.

Identify the roles and criticisms of multinational corporations (MNCs) in the global economy.

Understand the mechanisms of international trade and its regulation.

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Definitions:

Circular Flow Diagram

An illustration showing the flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of money from firms to households and from households to firms.

Revenue

Revenue is the total amount of money received by a company for goods sold or services provided during a certain period of time, before any expenses are deducted.

Expenditures

The total amount of money spent by a household or country on consumption and services.

Diagram

A graphical representation of information or data, typically used to visualize complex relationships or processes.