When Disney company spent millions to build and open Disney World Paris and Disney World Tokyo

formed a multinational corporation

Which of the following represents a challenge for companies doing business internationally?

Dealing with customs of different countries

When a company wants to market their products internationally through a wholesaler

walking through a foreign intermediary

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International Business

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Questions 15

Answers

1
Companies sometimes pool resources and skills in order to achieve common goals through
captured markets
strategic alliances
licensing agreements
diversification
2
NAFTA is agreement between which countries
US, Mexico, and Russia
US, Mexico, Canada, and Cuba
Mexico, US, and Canada
US, Mexico, and Cuba
3
When the US limits the total amount of cigars that can be imported, this is a
absolute advantage
tariff
quota
embargo
4
The US operates with a
profit gains in imports from manufactured goods
negative balance of trade
marginalized gains in profits
less imports than exports
5
When a company specializes in what it does best, it is said to be using its
comparative advantage
exporting advantage
none of the above
absolute advantage
6
A free trade area is
a way to help domestic companies
an area free of tariffs
area that is free of trade restrictions
an area where protectionism is present
7
The Balance of Trade
is an comparison of exports from one year to the next
compares the imports of one country to another country
is represented with a dollar amount
is part of the NAFTA agreement with Canada and Mexico
8
What is a tariff?
the same as balance of trade
a ban placed on exports
a way of supporting international trade partners
a fee placed on certain imports
9
What is approximately the trade deficit in the US?
2 billion
50 million
$900,000
36 billion
10
When Disney company spent millions to build and open Disney World Paris and Disney World Tokyo
formed a strategic alliance
formed a multinational corporation
Working through a foreign intermediary
Signed a Licensing agreement
11
What is protectionism meant to do?
Restrict domestic manufacturing
Decrease the trade surplus
Reduce the volume of imports
Increase the amount of exports
12
Which of the following represents a challenge for companies doing business internationally?
Dealing with customs of different countries
Having to report revenues from different sources
Increasing imports vs. exports
13
When a company wants to market their products internationally through a wholesaler
forming a strategic alliance
investing money to become an multinational company
walking through a foreign intermediary
using a licensing agreement with a foreign company
14
The value of one currency in terms of another is
diversification
foreign exchange rate
dollar cost averaging
balance of trade
15
The exchange of goods and services by different countries is known as
purchase power
international trade
business customs
embargo

International Business Flashcards | StudBud