| A | B |
|---|
| Requiring companies to have an import license is an example of a | trade barrier |
| A multinational enterprise is NOT acting with social responsibility if it | hires all employees from the home country labor force |
| A political system in which one political party holds all the power and prohibits members of other parties from participating is a | totalitarian system |
| Free-trade agreement | an arrangement between countries that eliminates duties and trade barriers on products traded among members |
| Home country | The country in which a multinational enterprise is headquartered |
| Quota | A limit on the amount of a product that can be imported from a given country |
| Trade barriers | Government actions or policies that make it difficult to trade across borders |
| Duty | A tax on imported products |
| The US government EXIM was established to | help finance the export sales of US products |
| Social security, medicare, and unemployment insurance are examples of | payroll-related taxes |
| When two countries agree to eliminate duties and trade barriers on products traded between them, they have | a free trade-agreement |
| Governments encourage and promote their country's exports primarily because | exports create jobs and foster economic prosperity |
| Tariffs, quotas, and boycotts are examples | trade barriers |
| To help avoid double taxation by corporations, the U.S. allows | multinational companies a corporate tax deduction on earned income from foreign subsidiaries |
| The following examples are factors that may signal civil unrest | extreme income unevenness, social disorder and war |
| Protectionism policies such as tariffs and quotas are used because | the government wants to make it harder for companies in other countries to compete with local companies |
| These are examples of how governments encourage global business | establishing free-trade agreements, establishing free trade zones, and providing free or subsidized export marketing assistance |
| Why do governments regulate businesses? | to protect the health and safety of workers |
| Value added and excise taxes are taxes on | the sale of goods |
| Most European countries operate under this type of political system | mixed |
| The following characteristics are typical of a democratic system is that | individuals can build a small business into a large business, individuals may travel freely to other countries, and individuals have freedom to own private businesses |
