What describes comparative advantage?

Supplying products more efficiently & lower cost than other goods

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

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 a joint venture?

Partnership formation between firms for a specific purpose or goal

What describes dumping?

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

An absolute advantage occurs when a country can maintain ______.

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

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

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BUS 1038 Ch 3 Competing in World Markets

16 termsStudBud Administration219 plays

Quiz Ch 3

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Questions 16

Answers

1
What describes comparative advantage?
Having the best locations to gain competive advantage over rival firms
Supplying products more efficiently & lower cost than other goods
Being able to work smarter, not harder, in all business matters.
Producing goods @ lower cost than those of competitors
2
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
3
When deciding to trade in another country, what should be a key criterion?
Availability of management training opportunities in the other country
Availability of the factors of production in the other country
Availability of investors in the other country
Availability of Internet access and reliability in the other country
4
Indirect exporting is when goods are sold abroad but the firm is not engaged in exporting directly.
True
False
5
Exchange controls require firms to buy/sell foreign exchange only via a designated authority.
True
False
6
What describes a joint venture?
A partnership between firms with limited liabilities
Sharing a hand rolled marijuana cigarette with a newbie
Sharing an apartment with a hottie -- with benefits? ;-)
Partnership formation between firms for a specific purpose or goal
7
Decisions to go abroad depend on availability, price and quality of the factors of production.
True
False
8
Which is NOT a contractual agreement that firms enter into when expanding business globally?
Offer to trade
Foreign licensing
Franchising
Subcontracting
9
What term describes the difference between a country’s exports and its imports?
Balance of trade
Trade surplus
Trade gap
Trade exchange
10
The World Bank makes short-term loans to developing nations to enable them to contribute in foreign trade .
False
True
11
What describes dumping?
Selling surplus goods abroad that firms can't sell at home
Something I did after eating a big breakfast today
Breaking off an intimate relationship with a significant other
Selling surplus goods overseas @prices < prod'n cost or @prices <@home
12
India has a/an ______ in developing software b/c of its highly educated workforce and low wages.
unfair advantage
monopoly
absolute advantage
comparative advantage
13
An absolute advantage occurs when a country can maintain ______.
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)
Its production of a good at a lower cost than any other country
14
Which is NOT an example of a monopoly in Canada?
Uber
Via Rail
Passport Canada
Canada Post
15
Cultural barriers refer to differences in language, religion and social values. What item is missing from this list?
Method of payment
Body language
Customers' buying habits
Currency exchange
16
Many developing nations have lower per capita incomes than those of highly developedcountries. What does this indicate?
That developing nations have little opportunity to grow economically
That developing nations are likely to purchase only low-priced goods
That developing nations are insignificant markets for global trade
That there may be some opportunity to sell in developing nations

BUS 1038 Ch 3 Competing in World Markets Flashcards | StudBud