Intro to business Chapter 3 (In Progress)
nontariff barrier.
Requiring red-tape-intensive import licenses for certain categories is an example of a(n):
more money flows out than in.
Balance of payments deficit means that:
It is affected by major trade barriers to international trade.
Identify a true statement about comparative advantage.
Power plants
In the context of barriers to international trade, which of the following is an example of energy infrastructure in a country?
Sharing of resources
Which of the following is a feature of joint ventures?
Counter trades
Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.
higher GDP growth rates.
Compared to the U.S., China and India have:
It is the most basic level of international market development.
Identify a true statement about exporting.
It offers companies an invaluable source of new ideas.
Identify a true statement about global trade.
It is a lender of the last resort to nations in financial trouble.
Identify a true statement about the International Monetary Fund (IMF).
The WTO promotes reduction of trade barriers and mediates disputes among members.
Identify a true statement about the World Trade Organization (WTO).
countertrade
In the late 1970s, LarceCo, a tea seller, entered the Russian marketplace. LarceCo traded tea-based products for Russian-made vodka because of the lack of a tradable currency in the Soviet Union. This is an example of _____.
they have a large cohort of technically skilled university graduates who work for about one-fifth the pay of comparable American workers.
One of the major reasons India, China, and the Philippines attract multibillion-dollar investments is that:
foreign outsourcing
Quitor Inc., which is based in the U.S., contracts with Falconnien Suppliers, a small-scale supplier in Taiwan, to manufacture its computers and tablets across the world. This strategy by Quitor Inc. is an example of _____.
licensee
Vieorien, a Swedish company, has allowed Loineker, an American company, the rights to produce Vieorien's products and use the Vieorien trademark. However, Vieorien does not have the authority or the rights to dictate the business operations of Loineker. In this scenario, Loineker is the _____.
It is a formal, long-term agreement
Which of the following is true of a partnership?
John, an American who exports goods to Europe
Who among the following is most likely to benefit in a case where there is a weak dollar against a euro?
Sociocultural differences
_____ include differences among countries in language, attitudes, and values.
imports from Mexico and Canada have grown faster than exports to these nations.
Critics of the North American Free Trade Agreement (NAFTA) believe Mexico and Canada have contributed to the United States' trade deficit because:
Balance of payments includes foreign borrowing and lending.
Identify a true statement about balance of payments.
trade surplus
When the total value of a nation's exports is higher than the total value of its imports, that country has a(n) _____.
The risk of poor quality control becomes higher.
Which of the following is a disadvantage of foreign outsourcing?
Foreign franchising
Which of the following is a specialized type of licensing?
Limited access to factors of production
Alice, the global marketing director of a multinational electronics manufacturing firm, is assigned the task of expanding her firm in growing new markets. She learns that the labor is expensive and that the technical equipment required for production is unavailable in the international market. In this case, which of the following is most likely affecting the global trade of Alice's firm?
foreign franchising
Pyoiunalek's, a U.S. restaurant chain, markets and endorses its business in Germany by offering buyers the rights to launch and operate the restaurant in their own country. It lends financial and marketing assistance to the buyers. Pyoiunalek's is employing the strategy of _____.
Sloimekia enjoys an absolute advantage in producing this particular cloth.
Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?
India's subscriber base for cell phones has grown explosively over the past five years.
Which of the following statements is true about the markets around the world?