BUS 100 - MOD 3 QUIZ

The _____ is the value of one currency in terms of another.

exchange rate

The World Trade Organization (WTO):

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

A country that imports more goods than it exports is said to have a(n):

unfavorable balance of trade

Italian customers view toothpaste as a cosmetic while consumers in Norway view it as a necessary part of daily hygiene and use three times as much their Italian counterparts. This example of _____ shows how important it is for marketers to understand.

cultural differences

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.

Multinational corporations

Why do many people fear trade and globalization?

Many fear trade and globalization will lead to massive job losses.

KoolKids International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. KoolKids will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:

a licensing agreement

Bolivia can grow and sell cut flowers for floral arrangements more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Bolivia has a(n):

comparative advantage

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:

licensing

The Caucasus Mountains along the northeastern border of Georgia (one of the former Soviet republics) makes it difficult for the nation to trade with other former Soviet republics that are to its north and east. The mountain range acts as a(n):

natural trade barrier

Free trade:

permits people to buy and sell where they please

A company that has a global vision

recognizes and reacts to international business opportunities

In the early 1900s, the U.S. prohibited importing Brazilian mangoes even though Brazil is the world's largest producer of the fruit. This prohibition remained in effect until 1993. The ban on importing Brazilian mangoes is an example of a(n):

embargo

Zimbabwe produces textiles, silver, diamonds, nickel, and meat, which it sells to European countries. To Zimbabwe, the materials it produces are examples of:

export