business quiz two

19. Which of the following is a specialized type of licensing? ***

Foreign franchising

15. _________ is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.

Comparative advantage

9. Which of the following statements is true about the markets around the world?

a. India's subscriber base for cell phones has grown explosively over the past five years.

3. Which of the following is the most costly form of foreign direct investment?

a. Offshoring

11. Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.

a. countertrade

18. 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 _____.

a. foreign franchising

4. Critics of the North American Free Trade Agreement (NAFTA) believe Mexico and Canada have contributed to the United States' trade deficit because:

b. ​imports from Mexico and Canada have grown faster than exports to these nations.

16. 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 _____.

licensee

2. Which of the following is true of a partnership?

b. It is a formal, long-term agreement.

7. ​_____ include differences among countries in language, attitudes, and values.

b. Sociocultural differences

17. Which of the following is a disadvantage of foreign outsourcing?

b. The risk of poor quality control becomes higher.

13. Compared to the U.S., China and India have:

b. higher GDP growth rates.

12. Requiring red-tape-intensive import licenses for certain categories is an example of a(n):

b. nontariff barrier.

14. Identify a true statement about global trade.**

c. It increases the economic risk of multinational companies

5. ​Identify a true statement about exporting.

c. It is the most basic level of international market development.

10. In the context of barriers to international trade, which of the following is an example of energy infrastructure in a country?

c. Power plants

8. Balance of payments deficit means that:

c. more money flows out than in.

1. Who among the following is most likely to benefit in a case where there is a strong dollar against a euro?

d. Ron, an American who is touring Europe

6. 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 _____.

d. foreign outsourcing

20. The _________ expresses the value of one nation's currency in terms of another nation's currency.

exchange rate