Business Final Review Ch.3

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

False

The financial assistance offered by the World Bank usually comes in the form of high-interest loans.

False

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

Foreign franchising

The__________is an organization of 188 member nations that promotes global economic cooperation and stable growth.

International Monetary Fund

Regency Placade, a renowned European electronics company, wants to set up a subsidiary in Finim, an Asian country. After conducting a survey, the company finds that Finim lacks the resources required for production. Therefore, Regency Placade decides to abandon the idea. In this scenario, which of the following most likely affected Regency Placade's plan?

Limited access to factors of production

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

Power plants

Vertiaplume, a drug manufacturing company, exports its products to more than 15 countries around the world. Regardless of reduced sales in one of these countries, Vertiaplume is able to maintain its overall profits. In the given scenario, which of the following is a reason behind Vertiaplume's ability to maintain its overall profits?

Reduced risk

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

Ron is an American who is touring Europe.

Brixbee Inc., a European electronics company, has given a domestic firm in Lougard, an Asian country, the rights to manufacture and market its product within Lougard. In this scenario, Brixbee Inc. is most likely involved in _____.

foreign licensing

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____.

foreign outsourcing

Mewpeth, an Asian nation, is the world's largest producer of cotton. The country was able to achieve this status by increasing the production of cotton and compromising on the production of wheat. The given scenario exemplifies the concept of _____.

opportunity cost

Umeron, a European country, wants to import 18 million bales of cotton from Trumberton, an Asian country. However, Umeron is able to import only 10 million bales because Umeron's import laws limit the amount of cotton and jute that can be imported. In the given scenario, the government of Umeron has imposed a(n) _____ to restrict international trade.

quota

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

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports. In this scenario, the American government imposed a(n) _____.

tariff

Which of the following countries is involved in countertrade?

An Asian country that provides sugarcane to an African country in exchange for jute