Chapter 1TF Q
A host country refers to the country under whose laws the investing corporation was created or is headquartered.
F
Currency exchange risk cannot be managed because the fluctuations of currencies cannot be predicted.
F
Customs brokers are government inspection officials who regulate the shipment of goods in and out of the country.
F
Freight forwarders act as the buyer's or importer's agent.
F
Government seizure of foreign assets is an example of international law risk.
F
Indirect exporting but not direct exporting involves sales through sales agents or to foreign distributors.
F
Information to research foreign countries, markets, and trade agents is limited.
F
Intellectual property rights are valuable assets that can be licensed for use to others through a document collection international sales contract.
F
Small and medium-size companies have little to contribute to the international marketplace.
F
The premise that suggests nations should concentrate their efforts on producing those goods that they can make most efficiently with minimal effort and waste is called comparative advantage.
F
The three forms of international business are exporting, importing, and licensing.
F
A home country refers to the country under whose laws the investing corporation was created or is incorporated.
T
A transfer of technology is governed by an international licensing agreement.
T
Because they tend to be more insidious, nontariff barriers are generally a greater barrier to trade than are tariff barriers.
T
Comparative advantage exists if the costs of production and price received for the goods allow the goods to be sold for a higher price in a foreign country than at home.
T
Exporting is the shipment of goods or rendering of services to a foreign buyer located in a foreign country.
T
Foreign investment refers to the ownership and active control of ongoing business concerns.
T
Freight forwarders act as the seller's or exporter's agent.
T
Global sourcing is the term commonly used to describe the process by which a firm attempts to locate and purchase goods or services on a worldwide basis.
T
Indirect exporters commonly employ the services of export trading companies and export management companies.
T
International licensing agreements are contracts by which the holder of intellectual property grants certain rights in that property to a foreign firm for a specified period of time.
T
Nontariff barriers have a significant influence on how firms make their trade and investment decisions.
T
The U.S. has maintained a trade surplus in services.
T
The U.S.'s largest trading partner is Canada.
T
Trade consists of the import and export of goods or services.
T