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