BUS 101 Chapter 3 Quiz

Umi and Lali are Asian nations that have signed a trade agreement with each other. The agreement states that Umi will supply wheat to Lali, and Lali will supply sugarcane to Umi. The agreement will benefit both nations and will even out some of the resource imbalances in the two nations. In this scenario, which of the following is most likely to have influenced the trade agreement between Umi and Lali?

Access to factors of production

Which of the following statements best supports the concept of countertrade?

Barter opportunities tend to increase during economic downturns.

In the context of strategies for reaching global markets, which of the following statements is true of exporting?

Exporting is the most basic level of international market development

Companies that choose to export products to a foreign country spend more to enter that market than companies that choose to build their own factories.

False

Which of the following strategies for reaching global markets allows firms to expand into foreign markets with little or no investment?

Foreign licensing

Which among the following is most likely to benefit in a case where there is a weak dollar against the euro?

Haben, an American citizen who exports goods to Europ

In the context of barriers to international trade, the term _____ refers to a country's physical facilities that support economic activity.

Infrastructure

Taini and Edda start a ride share business together. They sign a legal contract that states that the business is owned by them. The agreement also states that they will have an equal share in the profits of the business and will be equally liable for any losses incurred by the business. This scenario exemplifies

Partnership

Which of the following refers to national policies designed to restrict international trade, usually with the goal of protecting domestic businesses?

Protectionism

Ragni Hotels, a hospitality company, has developed a secondary market for its services in a foreign country. This allows the company to minimize its losses when its primary market fails to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Ragni Hotels' decision to set up a market in another country?

Reduced risk

In the context of key economic considerations when entering a foreign market , the transportation infrastructure in a country most likely includes

Roads

In the context of key economic considerations when entering a foreign market , the communications infrastructure in a country most likely includes

Televison

Despite their huge populations, China and India represent a much smaller opportunity in terms of size and economic growth.

false

Foreign licensing helps circumvent government restrictions on importing in closed markets

true

blank are limitations on the amount of specific products that one nation will sell to another nation.

voluntary export restraints