A country's exchange rate is based on the ________.

rate at which its currency is exchanged for other currency

An absolute advantage occurs when a country can maintain ________.

a monopoly by being the lowest-cost producer of a good

One effect of the North American Free Trade Agreement (NAFTA) is

an increase in trade among the NAFTA member nations

An understanding of religious holidays is essential in order to overcome

cultural international trade barriers.

Which of the following is the first step in the decision for a business to expand globally?

determining which foreign markets to enter

Which of the following is an example of a quota?

Sri Lanka limits the amount of bananas that can be imported

A country with a balance of payments surplus means

monetary inflow exceeds monetary outflow

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Management Ch 4

18 termsStudBud Administration26 plays

#Business Foundations #International

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Questions 18

Answers

1
Patents, trademarks, and intellectual property are important concerns in the _____ environment.
economic
cultural
political
legal
2
A major concern of labor unions regarding trade agreements is
loss of domestic jobs
a decrease in U.S. exports
higher prices on imported goods
a decrease in U.S. imports
3
BMW & Toyota set up a company to create a fuel cell for their products. This is
countertrade
foreign licensing
a joint venture
direct exporting
4
A trade deficit occurs when ________.
exports exceed imports
foreign-aid payments exceed exports
imports exceed exports
there is a net flow of money into a country
5
Even though the US manufactures toys, China is able to produce them more efficiently. This is a
comparative advantage
niche advantage
design advantage
absolute advantage
6
A country's exchange rate is based on the ________.
number of foreign banks it has
relationship between its imports and exports
tariffs and related trade restrictions
rate at which its currency is exchanged for other currency
7
All of the following constitute a country's infrastructure EXCEPT ________.
communication
political climate
transportation
energy facilities
8
A farmer sells wheat to a small African country in exchange for seafood. This is an example of
direct exporting
foreign licensing
international production
countertrade
9
An absolute advantage occurs when a country can maintain ________.
a monopoly by outlawing foreign imports
its advantage by producing a good more efficiently
a monopoly by being the lowest-cost producer of a good
a monopoly by levying high taxes on a good
10
One effect of the North American Free Trade Agreement (NAFTA) is
an increase in trade among the NAFTA member nations
an increase in the number of low-wage jobs in the US
an increase in trade restrictions among the member nations
a decrease in trade among NAFTA member nations
11
An understanding of religious holidays is essential in order to overcome
political international trade barriers.
cultural international trade barriers.
physical international trade barriers.
legal international trade barriers.
12
A company's ads for multiple countries use a common theme & only adapt them slightly. This is
global strategy
host country strategy
uniform pricing strategy
multidomestic strategy
13
The largest two US trading partners are
None of the Above
China & Mexico
Canada & Mexico
China & Canada
14
A less-developed country wants to build a port to increase exports. Financing could come from
International Monetary Fund
World Trade Organization
United Nations
World Bank
15
Which of the following is the first step in the decision for a business to expand globally?
bribing foreign government officials
determining which foreign markets to enter
applying for special export credits
deciding how to organize the overseas operations
16
Which of the following is an example of a quota?
Russia bans imports of certain agricultural products from EU
U.S. prohibits all trade with North Korea
Iceland limits the use of foreign currency in Iceland
Sri Lanka limits the amount of bananas that can be imported
17
Purchasing an existing firm in the host country to gain an international presence quickly is
an acquisition
a countertrade
a joint venture
a foreign licensing agreement
18
A country with a balance of payments surplus means
exports exceed imports
monetary inflow exceeds monetary outflow
monetary outflow exceeds monetary inflow
imports exceed exports

Management Ch 4 Flashcards | StudBud