Intro to business (Ch.3 Homework)

This organization was created to provide more trade agreements between countries and solve trade disputes if/when they arise ?

Common Market NAFTA WTO GATT NATO

Step 2 - Review each example and place it under the appropriate strategy on the continuum ?

Licensing - Budweiser Exporting - Foreign Customers Franchising - KFC Contract manufacturing - US Cellular Joint venture/Strategic alliance - Campbell's Soup Foreign Direct Investment - Bank of America

The economic goal for most nations is to achieve a(n)

neutral trade position. favorable balance of trade. economic deficit surplus. flat balance of payments. trade deficit.

If more and more countries decide to enact trade protectionism, then CH2M Hill would probably realize ?

fewer opportunities and revenue a free trade environment. increased growth. an import quota. a common market.

A company that uses a strategy of selling its products to a distributor in another country would be using ?

foreign direct investment. licensing. contract manufacturing. strategic selling. exporting

If the value of all the goods/services that United States exports is greater than the value of all that it imports, then this is referred to as a ?

trade deficit. balance of payments. trade advantage. balance of trade. trade surplus

A trade deficit is also referred to as a(n) ?

unfavorable balance of trade unstable trade balance. unified trading balance. favorable balance of trade. great trade position.

Offshore Outsourcing: Read the statements. Click and drag each item into the correct spot within the chart listing the pros and cons of offshore outsourcing

Flip "poor quality" and "Comunication becomes difficult"

Click and drag the term to correspond with its correct definition. Not all terms will be used ?

Dumping - The practice of exporting goods at prices lower than prices in the home market. Contract manufacturing - Production of goods by one firm under the label or brand of another firm. NAFTA - Trilateral treaty among Canada, Mexico and the U.S. that encourages free trade among these countries. GATT - General Agreement on Tariffs and Trade; international treaty to facilitate international trade. WTO - World Trade Organization; international organization dealing with the rules of trade between nations. importing - Bringing goods or services into one country from another. Exporting - The selling of goods and services produced in one country to another country. Multinational Corporation - Organization with facilities and other assets in at least one other country than its home country.

Click and drag the term to correspond with its correct definition. Not all terms will be used ?

absolute advantage - Country's ability to produce a good or service at a lower cost per unit than any other country can produce it. Embargo - Government order to restrict or prohibit commerce with a specific country. Tariff - Tax on imported goods used by governments to reduce imports and protect domestic industries.term-10 Import quota - Limiting the quantity of imports of a product to protect a domestic industry against foreign competition. Devaluation - Deliberate downward adjustment to a country's exchange rate relative to other currencies. Counter trading - A form of international bartering in which several countries each trade goods or services for other goods or services. Free trade - International commerce not restrained by government interference or regulation. Exchange rate - Price for which the currency of one country can be exchanged for the currency of another country.

Click and drag the term to correspond with its correct definition. Not all terms will be used ?

balance of payments - the difference between money coming into a country (exports) and money leaving the country for imports plus money flows from other factors such as tourism, foreign aid, and foreign investments balance of trade - total value of a countries exports compared to its imports measured over a particular period Trade Surplus - a favorable balance of trade, occurs when the value of a countries exports exceeds it's imports Trade deficit - an unfavorable balance of trade, occurs when the value of a countries imports exceeds its exports licensing - a global strategy in which the firm( the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty) Joint venture - a partnership in which two or more companies (often from different companies) join to undertake a major project common market - a regional group of countries that have a common external tariff, no internal tariff, a a coordination of laws to facilitate exchange, also called a trading block, foreign subsidiary - a company owned in a foreign country by another company called the parent company

If the United States exports more goods/services than it imports, then the U.S. would have a(n) ?

increased global impact. trade deficit. unfavorable balance of trade. trade surplus favored trading nation.

The use of outsourcing is primarily designed to reduce _____________ for the business that is implementing this strategy ?

tariffs production costs employees trade agreements