Chapter 4 business review

all of the following constitute a country's infrastructure except_______

political climate

the foreign corrupt practices act

prescribes fines and jail times for U.S. managers who are aware of bribe activity

an absolute advantage occurs when a country can maintain

A monopoly by being the lowest-cost producer of a good or service

even though the US manufactures textiles, china is able to produce them more efficiently. Thus, china has an__________ in manufacturing textiles.

comparative advantage

a U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. this is an example of

counter trade

an understanding of religious holidays is essential in order to overcome_____________ international trade barriers

cultural

Which of the following is the first step in the decision for a business to expand globally

determining which foreign markets to enter

a trade deficit occurs when

imports exceed exports

BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan versions are sold in Brazil-one as a Toyota and one as a BMW. This is an example of

joint venture

patents, trademarks, and intellectual property are important concerns in the__________ environment

legal

A major concern of labor unions regarding trade agreements is

loss of U.S. jobs

a country with a balance of payments surplus means

monetary inflow exceeds monetary outflow

By allowing a company to purchase another existing firm in the host country, a _______ permits a largely domestic business to gain an international presence very quickly.

acquisition

one effect of the north american free trade agreement is

an increase in trade among the NAFTA member nations

The Coco-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations?

global strategy

_______are a common trade restriction imposed by the government on agricultural products

quotas

a balance of payments deficit occurs when

the net outflow of money from a country exceeds the net inflow of money from abroad

a country's exchange rate is based on

the rate at which its currency can be exchanged for currencies of other countries

a less developed country wants to build new port facilities, which will allow it to increase agricultural exports. Financing for this project could come from the

world bank