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