1.

Countries that export a lot of oil or manufactured goods tend to have a positive balance of
trade
2. A country exporting more than it imports has a trade surplus
3. In a free trade area, governments cannot impose a tariff on imports.
4. A limit to the quantity of goods that can be imported is a quota
5. Adding trade in services to trade in goods gives you the balance of payments
6. Billions of dollars leave the USA every year because the country has a big trade deficit
7. Attempting to reduce imports in favor of local production is called protectionism
8. The import and export of goods is called visible trade.
9. Producing in large quantities becomes cheaper because of economies of scale
10. If a country can produce something more cheaply than anywhere else in the world it has an
absolute advantage
1. Many economists encourage governments to abolish import taxes and have complete
free trade
2. A number of international agreements make it illegal to dump goods on foreign
markets at a price that doesn't give a profit.
3. The comparative cost principle is that countries should make the things they can
produce the most cheaply
1. Many economists encourage governments to abolish import taxes and have complete free
trade
2. A number of international agreements make it illegal to dump goods on foreign
markets at a price that doesn't give a profit.
3. The comparative cost principle is that countries should make the things they can
produce the most cheaply
4. The WTO has established rules of trade between nations.
5. When investors establish a plant overseas, this is called FDI
6. If they buy shares or long-term debt obligations, this is called FPI
7. The amount of cash that remains after a company has paid taxes and other cash
expenses is cash flow projection
8. The rate of return is often measured in terms of profits realized on assets employed
9. A cash grant is called an incentive whose purpose is to attract FDI.
10. Prior to making an FDI, exporters can make a contract with a distributor or with a
foreign manufacturer, who will be licensed to manufacture their products. For this, the
foreign manufacturer pays royalty
4. The WTO has established rules of trade between nations.
5. When investors establish a plant overseas, this is called FDI
6. If they buy shares or long-term debt obligations, this is called FPI
7. The amount of cash that remains after a company has paid taxes and other cash
expenses is cash flow projection
8. The rate of return is often measured in terms of profits realized on assets employed
9. A cash grant is called an incentive whose purpose is to attract FDI.
10. Prior to making an FDI, exporters can make a contract with a distributor or with a foreign
manufacturer, who will be licensed to manufacture their products. For this, the foreign
manufacturer pays royalty
1. Another verb for fixing exchange rates against something else is to peg them.
2. Increasing the value of an otherwise fixed exchange rate is called revaluation
3. Gold convertibility ended in the early 1970s.
4. The current system is one of floating exchange rates.
5. A currency can appreciate if lots of speculators buy it
6. In fact, we have managed floating exchange rates, because governments and central banks
sometimes intervene on the currency markets.
7. Traders sometimes agree to trade currency in the future for an agreed rate. A “long position”
means that the trader will make a profit if the currency goes up.
8. A “short position” means that the trader will make a profit if the currency goes down.
9. When the government doesn’t control the exchange rate in any way, the currency is freely
convertible
10. Changes in the values of currencies are called currency fluctuation
1. A person who receives an international payment is called the beneficiary
2. The world price of coffee is not fixed. It is largely controlled by market forces
3. Import tariffs and quotas are types of trade barrier
4. The absence of trade barriers is known as free trade
5. Charging a high price for a new product is known as market skimming
6. Another word for ‘operating costs’ is overheads
7. A force majeure is an unforeseen event such as strike, riot or natural disaster which
prevents a contract from being fulfilled.
8. A devaluation can have a favorable effect on the trade balance because it can help
increase exports
9. Gold convertibility ended in the early 1970s.
10. Places where goods are sold to the public - shops, stores, kioshks, market, stalls, etc.
are called Points of sale
1. A person who receives an international payment is called the beneficiary
2. The world price of coffee is not fixed. It is largely controlled by market forces
3. Import tariffs and quotas are types of trade barrier
4. The absence of trade barriers is known as free trade
5. Charging a high price for a new product is known as market skimming
6. Another word for ‘operating costs’ is overheads
7. A force majeure is an unforeseen event such as strike, riot or natural disaster which prevents a
contract from being fulfilled.
8. A devaluation can have a favorable effect on the trade balance because it can help increase
exports
9. Gold convertibility ended in the early 1970s.
10. Places where goods are sold to the public - shops, stores, kioshks, market, stalls, etc. are
called Points of sale
1. Selling a bill or a financial instrument at a discount means selling it at less than 100%.
2. A clean floating exchange rate is determined by supply and demand.
3. Exchange controls used to limit the amount of a country's money that residents were
able to change into foreign currencies.
4. Speculators buy or sell currencies in order to make a profit by making capital gains
or by investing at higher interest rates.
5. Hedging means trying to insure against unfavorable price movements by way of
futures contracts.
6. A monopoly is a market in a particular product in which a single producer can fix an
artificial price.
7. Bartering is based on the exchange of goods for goods.
1. Selling a bill or a financial instrument at a discount means selling it at less than 100%.
2. A clean floating exchange rate is determined by supply and demand.
3. Exchange controls used to limit the amount of a country's money that residents were able to
change into foreign currencies.
4. Speculators buy or sell currencies in order to make a profit by making capital gains or by
investing at higher interest rates.
5. Hedging means trying to insure against unfavorable price movements by way of
futures contracts.
6. A monopoly is a market in a particular product in which a single producer can fix an artificial
price.
7. Bartering is based on the exchange of goods for goods.
8. Bretton Woods agreement stipulated that all members would express their currencies in gold
9. When central banks intervene in the foreign exchange markets at the intervention
points, this is called the system of fixed exchange rates.
10. Dealers using two foreign exchange markets to benefit from rate differentials are said to
engage in arbitrage
1. A marketing network consists of the company and its supporting stakeholders -
customers, employees, suppliers, distributors, retailers, agencies, university scientists, and others
- with whom it has built mutually profitable business relationships.
2. Letters of credit can be traded like other financial assets.
3. A bill of lading proves the ownership of goods.
4. The export of services is good for a country's balance of payments
5. Selling a new product cheaply in order to get a large market share is called market penetration
6. Apart from inside customs unions like the EU and NAFTA, goods imported abroad are
generally subject to tariffs
7. The price of labor and materials determines a product's direct cost
8. A wholesaler is an intermediary who stocks goods and delivers them to retailers.
9. As well as labour and materials (and profit), the price of a product also covers the
manufacturer's overheads
10. If there's a problem with the letter of credit, I suggest you contact the issuing bank
Exercise 2: 1. Counter marketing is the attempt to destroy unwholesome demand for products
that are considered undesirable, e.g. cigarettes, drugs, handguns, or extremist political
parties.
2. Stimulational marketing is necessary where there is no demand, which often happens with new
products and services.
3. Conversional marketing is the difficult task of reversing negative demand, e.g. for dental
work, or hiring disable people.
4. Synchromarketing alters the pattern of demand through flexible pricing, promotion, and other
incentives, e.g. for public transport between rush hours, or for ski resort in the summer.
5. Developmental marketing involves developing a product or service for which there is clearly a
talent demand, e.g. a non-polluting and fuel- efficient car.
6. Demarketing is the attempt by governments rather than private businesses to reduce overfull
demand, permanently or temporarily by raising prices, reducing promotion and the level of
service.
1. The premium for this cover will be at the rate of 90p% of the declared value of
1500GBP.
2. We would be grateful if you would quote us your rate for cover against all risks for this
consignment.
3. indemnity is a basic principle in insurance that the person who is insured should be in the
same financial position after a loss as s/he was before.
4. A licensing agreement is a contract between a manufacturer and a licensee in another country.
5. Insurance arrangements are made through brokers
6. A partial loss of a consignment, which may not affect other consignments on the same carrying
vessel, is a particular average
7. Regular shippers may often take out a floating policy, which gives automatic cover for a fixed
value of shipments, depending on the previous year's value, if the insurance company is told
when each shipment is made.
8. Ships' cargoes are covered by marine policies
9. A loss by one shipper, but which is shared by all the shippers with cargoes on the same
carrying vessel, is the general average
10. Natural disasters usually mean that insurance underwriters suffer heavy losses