Exam 3: The World Marketplace: Business Without Borders

Which of the following is the most costly form of foreign direct investment?

A _____ refers to the overage that occurs when more money flows into a nation than out of that nation.

Nipennie and Mirasa, two developing countries, bartered cotton for jute rather than for currency. In this scenario, the two countries engaged in _____.

A(n) _____ refers to a group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among the member nations.

Which of the following countries is involved in countertrade?

Brixbee Inc., a European electronics company, has given a domestic firm in Lougard, an Asian country, the rights to manufacture and market its product within Lougard. In this scenario, Brixbee Inc. is most likely involved in _____.

In the context of key economic considerations when entering a foreign market, the financial infrastructure in a country most likely includes _____.

Describe foreign licensing and foreign franchising. Explain their benefits and challenges with examples.

In the context of key economic considerations when entering a foreign market, which of the following is an example of the financial infrastructure in a country?

Wichasha, an African country, exports barley and cotton worth $100 million to Illema, a European country, and it imports sugarcane worth $25 million from Illema. As such, the total value of Wichasha's exports is higher than the total value of its imports. This difference between the value of Wichasha's exports and imports is known as _____.

_____ means buying products domestically that have been produced or grown in foreign nations.

Balance of payments includes financial flows such as foreign investments.

Which of the following strategies for reaching global markets is a specialized type of licensing?

To achieve its basic mission of promoting international economic cooperation and stable growth, the International Monetary Fund (IMF):

Which of the following statements is true of foreign outsourcing?

Nakato, a South Asian country, exported goods worth $500 million and imported goods worth $400 million in the last fiscal year. The country also made foreign investments worth $300 million and provided foreign aid worth $100 million in disaster relief. Besides this, the country took a loan of $5 billion from the World Bank. This flow of money into and out of Nakato is measured by _____.

Which of the following countries has a trade deficit?

Mora, an American jewelry manufacturing company, wants to import diamonds from Renoria, an Asian country. However, the officials in charge of the trade in Renoria agree to formalize the transaction only if they are paid a certain amount of money for their personal benefit. Since American businesses are prohibited from offering bribes to any foreign nation, Mora has to look to another exporter of diamonds. In the given scenario, Mora is most likely facing the barrier of _____.

_____ refers to the unrestricted movement of goods and services across international borders.

In the context of international trade, India, China, and the Philippines attract multibillion-dollar investments because: