business chapter 6

Which of the following statements about US trade in services are true? Check All That Apply As of 2020, 36.3% of all U.S. exports were services. The services sector is a growing share or global trade The United States is a net importer of services. The United States only trades services with Canada and Mexico because they border the United States.

As of 2020, 36.3% of all U.S. exports were services. The services sector is a growing share or global trade The United States is a net importer of services.

Which one of the following statements correctly defines what comparative advantage is? Comparative advantage is what a country has when its exports exceed its imports. Comparative advantage is the idea that countries and businesses should specialize in the production of goods in which they have a lower opportunity cost. Comparative advantage is the raw productivity advantage of a country in a certain industry compared to other countries. Comparative advantage is the idea that countries and businesses should specialize in the production of goods in which they have a higher opportunity cost.

Comparative advantage is the idea that countries and businesses should specialize in the production of goods in which they have a lower opportunity cost.

Which one of the following statements best describes international joint ventures? International joint ventures allow a foreign company to produce a company's products and utilize its trademarks for a royalty fee. International joint ventures allow firms to gain access to new markets and create mutually beneficial advantages, often for a specific project, without the sharing of profits and risks. International joint ventures allow two domestic companies to combine their efforts to produce products they will export to other countries. International joint ventures are a special type or partnership between two or more companies In different countries that share many parts or the business, including technology, Costs, profits, and rIsks

International joint ventures allow firms to gain access to new markets and create mutually beneficial advantages, often for a specific project, without the sharing of profits and risks.

Which one of the following statements best describes licensing? Licensing is a special type of partnership between two or more companies in different countries that share many parts of the business, including technology, costs, profits, and risks. Licensing allows a foreign company to produce a company's products and utilize its trademarks for a royalty fee Licensing allows firms to gain access to new markets and create mutually beneficial advantages, often for a specific project, without the sharing of profits and risks. Licensing allows two domestic companies to combine their efforts to produce products the will export to other countries.

Licensing allows a foreign company to produce a company's products and utilize its trademarks for a royalty fee

A country's imports last year were 220 billion dollars, and its exports were 190 billion dollars. Which of the following statements is true? Multiple Choice The country had a trade surplus of 410 billion dollars. The country had a trade deficit of 30 billion dollars. The country had a trade surplus of 30 billion dollars. The country had a trade deficit of 410 billion dollars.

The country had a trade surplus of 30 billion dollars.

Suppose someone who lives in the United States obtains prescription drugs from a pharmacy in Canada because they are less expensive there. Which of the following statements about this transaction are true? Check All That Apply The drugs are considered an export for Canada. The drugs are considered an export for the United States. The drugs are considered an import for Canada. The drugs are considered an import for the United States.

The drugs are considered an export for Canada. The drugs are considered an import for the United States.

Which of the following are benefits of global trade? Check All That Apply access to more markets enhanced cross-country relationships exposure to new product ideas exposure to new technology lower income inequality

access to more markets enhanced cross-country relationships exposure to new product ideas exposure to new technology

Which of the following are examples of trade in services between countries? Check All That Apply Conducting a lecture online from Florida to a student in Spain Getting financing from a German bank to build a house in Miami Beach Importing electronics from Korea Receiving customer service over the phone from a firm in India Taking a flight from New York to London

all

When compared to other modes of entry, is a relatively low risk and highly flexible strategy to reach global markets. an international joint venture foreign direct investment exporting contract manufacturing

exporting

Which of the following are purposes of the World Trade Organization? Check All That Apply facilitate a harmonious flow of global trade maintain lower political barriers to trade provide a forum for nations to negotiate the rules of international trade set global prices for goods and services traded among countries settle disagreements related to the implementation of trade agreements

facilitate a harmonious flow of global trade maintain lower political barriers to trade provide a forum for nations to negotiate the rules of international trade settle disagreements related to the implementation of trade agreements

true or false If a marketing professional in Detroit was paid to prepare a set of promotion materials for her client (Volkswagen) in Germany, we would call that an import to the United States.

false

Nike has contracts with hundreds of foreign factories that produce its products. This avoids the start-up costs involved with building new factories while reducing production and transportation costs. This is an example of Foreign direct investment contract manufacturing international franchising exporting

foreign direct investment

Which one of the following statements best describes what a tariff is? It is a way to promote international trade. It is a prohibition on all trade with a specific country. It is a tax that is placed on imported goods. It is a limit on the overall quantity of a certain good that can be imported into a country.

it is a tax that is placed on imported goods.

To be considered a(n) the business must own a physical presence in foreign country. multinational corporation licensee franchisee exporter

multinational corporation

Total imports and exports around the world in 2019 represented_____ of global GDP approximately half about 30% over 60% less than 10%

over 60%

Bolivia has no sea ports, and much of the country is located high in the Andes mountains. These factors create man-made barriers to trade technological barriers to trade physical barriers to trade lower barriers to trade

physical barriers to trade

Non-tradable goods and services are resources available in developing nations that the World Trade Organization protects from exploitation by industrialized nations. products that cannot be traded because of political conflicts between countries. scarce resources that cannot be traded. products that are not easily tradable due to their inherent characteristics

products that are not easily tradable due to their inherent characteristics

Which of the following are physical barriers to trade? Check All That Apply deserts politial conflict quotas rugged terrain tariffs

rugged terrain

Which of the following are reasons that countries may pursue trade protection? Check All That Apply to increase imports to protect domestic jobs to protect small domestic companies to provide more choices to domestic consumers to remove any price advantage a foreign good may have in the domestic marketplace

to protect domestic jobs to protect small domestic companies to provide more choices to domestic consumers to remove any price advantage a foreign good may have in the domestic marketplace

______ is/are a barrier instituted by a governmental entity designed to shield domestic industries and their workers from global competition. Physical barriers to trade Licensing Foreign subsidiaries Trade protection

trade protection

A positive balance of trade is also known as a trade deficit trade surplus budget surplus net import budget deficit

trade surplus

true or false One of the potential drawbacks of international trade is the loss of a national identity as a divergence grows between those who benefit from trade and those who don't

true

true or false Safety or environmental regulations often serve as non-tariff barriers to trade.

true

true or false The balance of trade measures whether a country exports more to other countries or imports more from other countries.

true