DECA International Business Flashcards

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

Answer: The ability to function effectively across different cultural contexts

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

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

Answer: Import quotas limiting the quantity of goods allowed in

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.

What is a 'joint venture' in international business?

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

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.

What does NAFTA/USMCA govern?

Answer: Trade relations between the United States, Canada, and Mexico

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.

What is 'currency exchange risk' in international business?

Answer: The potential loss from fluctuating foreign exchange rates affecting profits

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

Which DECA competitive event focuses on international business concepts?

Answer: International Business Plan

The International Business Plan event challenges DECA members to develop a comprehensive plan for entering a foreign market, covering research, strategy, and financial projections.