MKT 291 Chapter 6 questions with correct answers

Protectionism Answer the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas Tariff Answer a government tax on goods or services entering a country, primarily serving to raise prices on imports -- increase prices Quota Answer a restriction placed on the amount of a product allowed to enter or leave a country -- limit supply World Trade Organization Answer institution that sets rules governing trade between its members through a panel of trade experts European Union Answer consists of 27 member countries that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders North American Free Trade Agreement (NAFTA) Answer lifted many trade barriers between Canada, Mexico, and the united States, and created a marketplace with more than 450 million consumers Global Competition Answer exists when firms originate, produce, and market their products or services worldwide -- "Cola War" between Pepsi and Coke Three Types of Global Companies Answer 1. international firms 2. multinational firms