Into to Business: Chapter 3

A countertrade in international terms pertains to the sale of retail goods that are usually sold "over the counter."

False

According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply:

False

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):

direct foreign investment

In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had:

less than $10.58 in exports

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 Ford Motor Company has invested $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world. Ford is a(n) _____ company.

Multinational

When Coca-Cola sends cases of Coke to France and receives sparkling water as payment, a countertrade has taken place.

True

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO).

Uruguay Round

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising the principle of:

comparative advantage

The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

Absolute advantage

4. A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.

Countertrade

The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):

Import

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights are called a(n):

Joint venture

Which of the following is NOT a part of a nation's infrastucture?

Mountain ranges

Which of the following statements about dumping is true?

The U.S has passed laws to make dumping illegal.

International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

True

The International Monetary Fund (IMF) was created to promote trade through financial cooperation by working to eliminate trade barriers.

True

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

True

The _____ is a protectionist argument that says the U.S. should use tariffs to keep foreign labor from taking away U.S. jobs.

job-protection argument

The World Bank's emphasis has recently shifted from helping to build the infrastructure of developing countries to:

offering loans to help to relieve their debt burden

In 1998, Canada... ...By using split-run magazines (modifying the U.S. edition so they contain Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines for less money than Canadian publishers could. According to the CMPA, the U.S. magazine publishers would be engaged in:

Dumping

The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.

Exporting

French state institution founded in the 17th century to maintain the purity of the language unveiled a dictionary of newly-coined French equivalents to English Internet terms in 2000. This is symptomatic of the difficulties in doing business in France because the business must be conducted in French. Therefore, it is easy to assume that _____ is extremely important in France.

Nationalism

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

Nationalism

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