Ch. 3

involves selling a product at a price lower than the cost of production...

Dumping

Which of the following is an example of a trading bloc?

European Union

________ is a permanent forum for negotiating, implementing, and monitoring international trade procedures and for mediating trade disputes among its more than 150 member countries.

World Trade Organization

Legal systems in Great Britain and the U.S. are based on ________ law.

common

Multinational corporations are companies that ________.

establish a physical presence in multiple countries through FDI

A firm wants to enter foreign markets to expand its business. However, it does not want to make significant investments before assessing foreign conditions. Which of the following strategies is best suited to enter a foreign market slowly and then design the firm's product offerings?

exporting

John, a jewelry maker in Montana, receives international orders through his website. He ships the products from the production plant at Montana after receiving confirmed orders. This scenario is an example of ________.

exporting

A country's balance of trade is the total value of its imports less the total value of its exports.

false

McDonald's has sold individual owners the rights to use its trademark and business system. Furthermore, McDonalds's has used this approach to open restaurants in more than 100 foreign countries. This is an example of ________.

franchising

In a(n)________ strategy, managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

global

________ limit the amount of particular goods that countries allow to be imported during a given year.

import quotas

An embargo is a complete ban on the import or export of certain products or even all trade between certain countries.

true

Culture is a shared system of symbols, beliefs, attitudes, values, expectations, and norms for behavior.

true

The European Union has created a currency of its own.

true

A country has a trade deficit when the ________.

value of its imports exceeds the value of its exports