DECA DECA International Business 2

Question 1

What is 'cultural intelligence' (CQ) in international business?

Accepted Answer

The ability to function effectively across different cultural contexts

Answer

Cultural intelligence is the capability to relate and work effectively across cultures by understanding and adapting to different cultural norms, values, and behaviors.

Question 2

Which of the following is an example of a non-tariff trade barrier?

Accepted Answer

Import quotas limiting the quantity of goods allowed in

Answer

Import quotas are non-tariff barriers because they restrict the quantity of a good that can be imported without using a price-based tax mechanism.

Question 3

What is a 'joint venture' in international business?

Accepted Answer

Two or more companies sharing ownership of a new entity in a foreign market

Answer

A joint venture is a strategic alliance where two or more companies create a jointly owned entity to enter a foreign market, sharing resources, risks, and profits.

Question 4

What does NAFTA/USMCA govern?

Accepted Answer

Trade relations between the United States, Canada, and Mexico

Answer

USMCA (which replaced NAFTA) is a free trade agreement governing tariffs, trade rules, intellectual property, and labor standards between the U.S., Canada, and Mexico.

Question 5

What is 'currency exchange risk' in international business?

Accepted Answer

The potential loss from fluctuating foreign exchange rates affecting profits

Answer

Currency exchange risk is the financial risk that changes in exchange rates will negatively affect the value of international transactions or investments.

(DECA) Distributive Education Clubs of America Practice Test

(DECA) Distributive Education Clubs of America Practice Test

DECA DECA International Business 2