Vocabulary for Describing International Business and Trade

Quiz Instructions
This random quiz is designed to test your knowledge of various terms related to international business and trade. After answering each question, you will be presented with a short explanation of the correct answer. At the end of the quiz you will have a better understanding of the vocabulary associated with international business and trade. Good luck!

Quiz

1. The economic system wherein goods and services are exchanged in return for a currency is known as what?
   A) Capitalism
   B) Socialism
   C) Communism
   D) Mercantilism

Answer: A) Capitalism

2. What does it mean when a country practices protectionism?
   A) It is willing to accept goods and services from other countries.
   B) It imposes tariffs and other restrictions in order to protect its domestic industries.
   C) It is open to foreign investment and competition.
   D) It creates subsidies to reduce the cost of international goods and services.

Answer: B) It imposes tariffs and other restrictions in order to protect its domestic industries.

3. What is the purpose of an import quota?
   A) To reduce the amount of bureaucracy involved in importing goods.
   B) To increase the amount of foreign goods and services available to a country.
   C) To limit the amount of goods and services imported into a country.
   D) To increase the cost of goods imported into a country.

Answer: C) To limit the amount of goods and services imported into a country.

4. What is a multinational corporation?
   A) A corporation that operates in multiple countries.
   B) A corporation that is owned by multiple countries.
   C) A corporation with multiple owners.
   D) A corporation that regulates international trade.

Answer: A) A corporation that operates in multiple countries.

Expectations and Hopes
We hope that after completing this quiz, you have gained a better understanding of the vocabulary related to international business and trade. Good luck!