Chapter 4 Marketing Essentials Review
difference in value between exports and imports
balance of trade
In 1989, the United States placed a ban on Chilean grapes due to poisoned fruit. What is another term for this ban?
embargo
total ban on specific goods coming into and leaving a country
embargo
A nation experiences a trade surplus when it imports more than it exports.
false
An embargo is a limit on the number or monetary value of a product that can be imported.
false
International trade and foreign investments generate about two-thirds of the profits of U.S. businesses.
false
establishment of a business in a foreign country
foreign direct investment
One economic factor relevant to starting a business in another country is
foreign exchange rate
The price of one country's currency if purchased with another country's currency is known as the _________________________.
foreign exchange rate
According to the text, protectionism is the opposite of ____________________.
free trade
In some countries, foreign investors cannot own 100 percent of a business. So, a foreign business must find a local partner to set up a ____________________.
joint venture
agreement comprised of US, Canada, and Mexico
NAFTA
All imports that enter the United States are monitored by the customs division of the ____________________.
U.S. Treasury
coalition of nations that makes rules governing international trade
WTO
A country's ability to produce a product at a lower cost than any other nation gives the country a(n) ____________________ advantage
absolute
Select the trade alliance that establishes guidelines for international trade.
all of the above
Global marketing strategies include globalization, adaptations, and
customization
purchasing goods from a foreign country
imports
A country's ____________________ includes its roads, its sewage system, and its telephone service.
infrastructure
the exchange of goods and services among nations
international trade
use of a trademark, patent, special formula, company name for a fee
licensing
The major trade benefit of contract manufacturing is
lower wages
Globalization is mass ____________________ on a global scale.
marketing
restrict imports in order to protect domestic industries
protectionism
limits either the quantity or the monetary value of an imported product
quota
The three main types of trade barriers are tariffs, embargoes, and ____________________.
quotas
The United States imports most apparel from many Asian countries. As a result, the United States has a large ____________________ with China.
trade deficit
A nation's balance of trade is the difference in value between its exports and imports.
true
GATT was an international agreement to open trade markets and promote global free trade.
true