DECA DECA International Business

Question 1

What is a 'tariff' in international trade?

Accepted Answer

A tax imposed by a government on imported or exported goods

Answer

An international shipping contract

Answer

A currency exchange agreement between countries

Answer

A quota limiting how much of a product can be sold

Question 2

Which organization oversees the rules governing international trade between nations?

Accepted Answer

World Trade Organization (WTO)

Answer

International Monetary Fund (IMF)

Answer

United Nations (UN)

Answer

World Bank

Question 3

What is the term for a situation where a country can produce a good at a lower opportunity cost than another country?

Accepted Answer

Comparative advantage

Answer

Absolute advantage

Answer

Trade surplus

Answer

Economies of scale

Question 4

What is 'foreign direct investment' (FDI)?

Accepted Answer

A company investing in business operations or assets in another country

Answer

Buying foreign government bonds

Answer

Exchanging currency in a foreign bank

Answer

Purchasing stock in a foreign company on an exchange

Question 5

Which entry strategy requires the LEAST financial risk when entering a foreign market?

Accepted Answer

Exporting

Answer

Wholly owned subsidiary

Answer

Joint venture

Answer

Greenfield investment

Question 6

What does the term 'balance of trade' refer to?

Accepted Answer

The difference between a country's total exports and imports

Answer

The ratio of government spending to tax revenue

Answer

The exchange rate between two currencies

Answer

The total value of foreign investments in a country