Match the term with its definition.
-The potential for political forces in a country to negatively affect the performance of businesses operating within its borders

Question

Quizplus · Accepted Answer

Political risk refers to the potential for political forces in a country to negatively affect the performance of businesses operating within its borders.

Answer: A 
 A bill of lading is a document that serves as a receipt of goods shipped on board a vessel, and contains information such as the type, quantity, and destination of the goods.

Answer: C 
 Counterfeit activity refers to the illegal production and sale of goods that are imitations of genuine products, often with the intention of deceiving consumers.

Answer: D 
 Economies of scale refer to the cost advantages that a firm can achieve by increasing the scale of production, which can result in lower average costs per unit of output.

Answer: E 
 An exchange rate is the value of one currency expressed in terms of another currency, and is determined by the supply and demand for each currency in the foreign exchange market.

Answer: F 
 A letter of credit is a document issued by a bank that guarantees payment to a supplier or exporter on behalf of the buyer, provided that certain conditions are met.

Answer: H 
 Royalties are payments made by one party (often a licensee) to another party (often a licensor) for the right to use or exploit an intellectual property asset, such as a patent or trademark.

Answer: B 
 Born-global firms are companies that are established with a global focus from the outset, rather than starting with a domestic market and expanding internationally over time.

Match the Term with Its Definition