Chapter 3 intro to business test

Which of the following companies is engaged in importing?

A company that buys electronic goods that are domestically manufactured by other countries

In the context of key economic considerations when entering a foreign market, which of the following is an example of the transportation infrastructure in a country?

Airports

Which of the following countries most likely has a comparative advantage?

An Asian country that produces quality automobiles with little opportunity cast compared to other countries

In the context of key economic considerations when entering a foreign market, which of the following is an example of the communication infrastructure in a country?

Cell phone coverage

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

Exporting

In the context of competitive advantage, the value of the first-best choice represents the opportunity cost of producing a second product.

False

Quotes are taxes levied against imports

False

A restaurant chain markets and endorses it's businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, it is employing the strategy of______ to reach global markets

Foreign franchising

Which of the following strategies for reaching global markets allows firms to expand into foreign markets with little or no investment?

Foreign licensing

Compared to the United States, China and India have

Higher gross domestic product growth rates

In the context of emerging economies, which of the following statements is true of the BRIC countries?

India's subscriber bae for cell phone has grown explosively over the past five years

In the context of the strategies for reaching global markets, which of the following statements is true of exporting?

It is the most basic level of international market development

Which of the following statements is true of international trade?

It offers companies an invaluable source of new ideas

Which of the following is most costly form of foreign direct investment?

Offshoring

The arguments for and against trade restrictions are called

Protectionism

In the context of international trade restrictions,________ are limitations on the amount of specific products that may be imported from certain countries during a given time period

Quotas

In the context of barriers to international trade,_______ include differences among countries in language attitude, and values

Sociocultural differences

In the context of international trade restrictions,_______ are taxes levied against imports

Tariffs

In the context of the strategies for reaching global markets, which of the following statements is true of direct investment?

The cost involved indirect investment is high

A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources

True

In foreign licensing, licensors run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement

True

In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences

True