Business Ch 3 Test Study Guide

A nontariff barrier

Esterotia, a European country, requires red-tape-intensive licenses for all alcohol imports. In this scenario, which of the following types of trade restrictions does the country use?

they have a large cohort of technically skilled university graduates who work for about one-fifth the pay of comparable American workers.

In the context of international trade, India, China, and the Philippines attract multibillion-dollar investments because

Conducting thorough customer research

In the context of the barriers to international trade, which of the following is the best way to jump over sociocultural barriers?

innovation

In the context of the economic differences among nations in international trade, effectively serving less-developed markets requires:

trade deficit

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini had a _____ in the last fiscal year.

foreign franchising

Which of the following strategies for reaching global markets is a specialized type of licensing?

Ron is an American who is touring Europe.

Who among the following is most likely to benefit when the dollar is strong and the euro is weak?

Foreign licensing

is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.

It represents an especially strong opportunity for small and mid-sized companies.

Identify a true statement about exporting

reduced risk

Nescat Autos, an automobile manufacturing company, developed a secondary market for its products in a foreign country. This allowed the company to minimize its losses when its primary market failed to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Nescat Autos's decision to set up a market in another country?

a joint venture

Nessi Bru, an American construction firm, and West Brook Inc., a Canadian construction firm, collaborated on an infrastructure project to build a railway track from Regina in Canada to Minneapolis in the United States. They shared their resources, risks, and profits, but they still functioned as two independent firms. In this scenario, Nessi Bru and West Brook Inc. were most likely involved in _____.

comparative advantage

When the industries in a country tend to produce products that have the lowest opportunity cost relative to other countries, the country most likely has a

it enjoys an absolute advantage in terms of the particular cloth it produces.

Sloimekia can manufacture more of a certain kind of cloth than its neighboring countries, although they all have the same amount of resources for the cloth's production. In this scenario, which of the following statements is true of Sloimekia?

foreign franchising

Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter the market of Troyesna, a fast-developing country. The firm offers a small-scale producer in Tryoesna the right to produce and market its goods based on a set of specific operating functions and requirements. This scenario of Willister Computers illustrates

Exporting

refers to selling products in foreign nations that have been produced or grown domestically