Chap 3 Quiz

Mariah Dover cashed her $100 traveler's check in Riga, the capital of Latvia. At the current _____ rate, she received $61.82 in Latvian currency from the bank teller who took her traveler's check.

(floating) exchange

IN YOUR OWN WORDS... Using at least 50 words, identify and explain the most fundamental reason for the growth in world trade?

Companies need to expand their business and can increase profits

_____ is a form of barter in which countries trade goods and services.

Countertrade

IN YOUR OWN WORDS... Using at least 50 words, identify and explain what companies that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located are called.

Multinational corporations

_____ are corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located.

Multinational corpotations

The _____, formerly the International Bank for Reconstruction and Development, is a bank that offers low-interest loans to developing nations.

World Bank

The difference between a country's total payments to other countries and its total receipts from other countries is called its: -balance of exchange -financial surplus -financial deficit -balance of trade -balance of payments

balance of payments

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts. This example of _____ shows how important it is for marketers to understand. -nationalistic standards -expropriation laws -cultural differences -trade regulations

cultural differences

The _____ is the value of one currency in terms of another. -favorable rate -balance of payments -investment exchange -exchange rate -balance of trade

exchange rate

T or F: Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

false

T or F: If Syria gives Lebanon a tariff advantage over other countries, Lebanon has been given a biased tariff.

false

The _____ is a protectionist argument that says the U.S. should use tariffs to keep foreign labor from taking away U.S. jobs. -home protection agreement -minimum-job employment agreement -job equity principle -statement of job security -job-protection argument

job-protection argument

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of: -ethnocentricity -protectionism -free trade -dumping -countertrading

protectionism

T or F: When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.

True

The United States imposes a(n) _____, a tax, on all imported bicycles.

tariff

T or F: In international licensing, the licensor is the domestic firm that allows the licensee to use its trademark or brand.

true

T or F: One of the advantages multinational corporations have over other companies is their ability to sidestep regulatory difficulties.

true