Chapter 3

A favorable balance of trade occurs when the value of:

U.S. imports boost the U.S. economy.

Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:

Which of the following sociocultural forces can have a significant impact on global business operations?

Foreign direct investment refers to the buying of goods produced in another country.

Importing is the selling of products to another country.

An example of a U.S. import would be the purchase of oil by U.S. companies from Saudi Arabia.

the exchange of merchandise or services for other merchandise or services without the exchange of money is?

Contract manufacturing is a form of outsourcing.

Foreign travel can help in identifying global business opportunities.

Free trade is the movement of goods and services between nations without political or economic barriers.

when a foreign direct investment purchases a domestic firm in a foreign country to produce a similar product or service.

90% of companies doing business globally believe its important 4 employees to have experience working in other countries

Today, there are more countries that have some form of absolute advantage in a product or service, than years ago.

Which of the following represents the value of one nation's currency relative to the currencies of another country?

The two basic types of tariffs are:

Absolute advantage is the basis for most global trade today.

A major advantage of licensing is:

Which of the following is considered when calculating a country's balance of payments?

For a firm to be considered a multinational corporation, which of the following conditions must be true?

An example of foreign direct investment would be Pepsi granting a Saudi firm the use of its formula &trademark for a fee

Small businesses are less involved in global trade today than in the past.