When deciding to trade in another country, what should be a key criterion?

Availability of the factors of production in the other country

What describes dumping?

Selling surplus goods overseas @prices<prod'n costs or @prices < than @home

What describes comparative advantage?

Supplying products more efficiently & lower cost than other goods

What describes a joint venture?

Partnership between companies for a specific purpose or goal

Many developing nations have lower per capita incomes than those of highly developedcountries. What does this indicate?

That there may be some opportunity to sell in developing nations

An absolute advantage occurs when a country can maintain ______.

Its production of a good at a lower cost than any other country

Chick-fil-A opened its first store in Toronto Sept 2019. How can its closure on Sundays be a trade barrier?

Sunday closures limit market access to its products

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DuplBUS 1038 Ch 3 Competing in World Markets

15 termsStudBud Administration13 plays

Quiz Ch 3 Global Markets

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Questions 15

Answers

1
When deciding to trade in another country, what should be a key criterion?
Availability of the factors of production in the other country
Availability of management training opportunities in the other country
Availability of Internet access and reliability in the other country
Availability of investors in the other country
2
What describes dumping?
The act of ending an intimate relationship with a significant other
Something I did after eating leftover burritos this morning.
Selling surplus goods overseas @prices<prod'n costs or @prices < than @home
Selling surplus goods abroad that firms aren't able to sell at home
3
Indirect exporting is when goods are sold abroad but the firm is not engaged in exporting directly.
True
False
4
The World Bank provides _______ to developing nations to enable them to contribute in foreign trade .
Grants
Interest-free loans
Long-term loans
Short-term loans
5
Exchange controls require firms to buy/sell foreign exchange only via a designated authority.
False
True
6
What describes comparative advantage?
Being able to work smarter, not harder, in all business matters.
Producing goods @ lower cost than those of competitors
Having the best locations to gain competive advantage over rival firms
Supplying products more efficiently & lower cost than other goods
7
Decisions to go abroad depend on availability, price and quality of the factors of production.
False
True
8
Cultural barriers refer to differences in language, religion and social values. What item is missing from this list?
Body language
Method of payment
Currency exchange
Customers' buying habits
9
What describes a joint venture?
Sharing a 1 BR apartment with a Hottie, with benefits too!
Partnership between companies for a specific purpose or goal
Sharing a hand rolled marijuana cigarette with a friend
A partnership between firms with limited liabilities
10
Which is NOT a contractual agreement that firms enter into when expanding business globally?
Subcontracting
Offer to trade
Franchising
Foreign licensing
11
Many developing nations have lower per capita incomes than those of highly developedcountries. What does this indicate?
That developing nations are likely to purchase only low-priced goods
That there may be some opportunity to sell in developing nations
That developing nations are insignificant markets for global trade
That developing nations have little opportunity to grow economically
12
An absolute advantage occurs when a country can maintain ______.
Its production of a good at a lower cost than any other country
A monopoly by levying high taxes on imports
Its advantage by producing a good or service more efficiently
A monopoly by charging the highest price of a good (e.g., Apple)
13
Chick-fil-A opened its first store in Toronto Sept 2019. How can its closure on Sundays be a trade barrier?
Lost sales shift to KFC and to Popeye Louisiana Kitchen, which reduces GDP
Sunday store closures result in trade deficits with the U.S.
Closure on Sundays is an insignificant trade barrier
Sunday closures limit market access to its products
14
What term describes the difference between a country’s exports and its imports?
Trade exchange
Trade surplus
Trade gap
Balance of trade
15
India has a/an ______ in developing software b/c of its highly educated workforce and low wages.
comparative advantage
unfair advantage
absolute advantage
monopoly

DuplBUS 1038 Ch 3 Competing in World Markets Flashcards | StudBud