Chapter 3 - Business in a Borderless World

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

The World Trade Organization agreements were rejected by most of the world's trading nations.

If a company is based in the U.S. buys parts from China, the company is engaged in exporting.

Transferring manufacturing/other tasks, such as data processing, to countries where labor/supplies are less expensive

An example of ______ is the sharing of costs and operations of a business between a foreign company and a local partner.

When a nation imports more than it exports, it has a positive balance of trade.

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

________ is defined as the act of a country or business selling products at less than what it costs to produce them.

Physical facilities such as railroads, highways, and distribution systems all support a country's economic activities.

Differences in spoken and written language represent a(n) ________ barrier to international trade.

The ________ is the closest thing the world has to an international central bank.

Which regions were merged into one market by the North American Free Trade Agreement (NAFTA)?

The ratio at which one nation's currency can be exchanged for another nation's currency is referred to as the

Political unrest in countries create a hostile environment for foreign businesses and are barriers to int'l trade.

The difference between the flow of money into and out of a country is called its

Some Muslim nations forbid the importation of alcoholic beverages into their countries is an example

Licensing is a good option for small manufacturers wanting to launch a well-known brand internationally.

If Thailand wants to limit the amount of sugar that the U.S. imports into its country, it would do so by imposing a(n)

What is a reason some U.S. companies might bring their outsourced production processes back to the United States?

MNCs are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

GATT provided a forum for tariff negotiations and a place where international trade problems could be resolved.

Trading companies handle all activities required to move products from one country to another.

APEC is a trade agreement between Asian countries and does not include the United States.

Why has outsourcing become a controversial practice in the United States?

What is true of the World Bank?

________ is best described as the sale of goods and services to foreign markets.

________ is the single largest trading partner of the United States.

A nation's ________ is defined as the difference in value between its exports and imports.

Political concerns may lead several nations to form a(n) ____ agreeing to act as a monopoly/not compete with each other.

Ann bought a new shirt from a retailer in the U.S. but the tag showed that her shirt was made in Vietnam. This is a(n):

Sociocultural differences, such as body language and personal space, rarely have an impact on international business.

One of the outcomes of a country continually operating with a trade deficit is

nternational business involves the buying, selling, and trading of goods and services across national boundaries.

A country that is the only place to grow a rare plant that is used to produce a healing product, is an example of

The European Union is working toward the creation of individualized currency.

A(n) ________ is best defined as a prohibition on trade in a particular product.

A common reason for establishing quotas or tariffs is to encourage dumping.

A favorable balance of trade exists when a country

Many of the legal rights that Americans take for granted do not exist in other countries.

Which can be best defined as a corporation that operates in several countries without significant ties to any of them?

Arab businessmen tend to stand face-to-face during a conversation reveals an understanding another culture's use of

A specific amount of money levied on each unit of a product brought into a country is referred to as a(n) _____ tariff.

A(n) ________ exists when a country is the most efficient producer of an item.

Which was established by industrialized nations in 1946 to loan money to underdeveloped and developing countries?

If a country imports more goods and services than it exports, the country most likely has

A country that imposes an embargo in response to some political event is attempting to

Direct investment provides the least amount of control but is the least expensive way to participate in foreign trade.

Brexit is a set of sanctions imposed on EU members that trade outside of the union.

If a company in the United States buys, sells, and trades goods/services with several other countries, it is engaged in

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means

_____ involves standardizing products, their promotion/distribution, for the whole world, as if it were a single entity.

Protective tariffs allow more expensive domestic goods to compete with foreign ones.

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.