Exam 3: The World Marketplace: Business Without Borders

In the context of competitive advantage, the value of the first-best choice represents the opportunity cost of producing a second product.

Bresnee, a European automobile company, plans to sell its automobiles in Lador, an Asian country. To do this, Bresnee has to make certain modifications in its marketing strategy such as using the regional language of Lador in its advertisements. Without such changes, Bresnee would not be able to establish a market in the country. In the given scenario, Bresnee is most likely facing the barrier of _____.

Regency Placade, a renowned European electronics company, wants to set up a subsidiary in Finim, an Asian country. After conducting a survey, the company finds that Finim lacks the resources required for production. Therefore, Regency Placade decides to abandon the idea. In this scenario, which of the following most likely affected Regency Placade's plan?

In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences.

The term _____ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports.

When the total value of a nation's exports is higher than the total value of its imports, that country has a(n) _____.

In the late 1970s, LarceCo, a tea manufacturing company, entered the market of a developing country called Fantesnia. As there was a lack of hard currency in Fantesnia, LarceCo was involved in a barter system. It exchanged its tea-based products for the local vodka of Fantesnia. This scenario illustrates that LarceCo had engaged in _____.

Neminski, an Arab country, is renowned for its rich oil reserves. It earns approximately $1.3 billion annually by selling crude oil to other countries. Given this information, Neminski is most likely involved in _____.

Nessi Bru, an American construction firm, and West Brook Inc., a Canadian construction firm, collaborated on an infrastructure project to build a railway track from Regina in Canada to Minneapolis in the United States. They shared their resources, risks, and profits, but they still functioned as two independent firms. In this scenario, Nessi Bru and West Brook Inc. were most likely involved in _____.

In the context of foreign direct investment, which of the following statements is true of joint ventures?

_____ is an agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses.

Remurio Inc., an African multinational company, wants to import raw materials from Infigerd, an Asian country. However, the company can import only a certain quantity of raw materials because of trade restrictions imposed by Infigerd. In this scenario, Remurio Inc. is most likely facing the barrier of _____.

Which of the following is most likely a nontariff barrier to international trade?

_____ are limitations on the amount of specific products that one nation will sell to another nation.

Umeron, a European country, wants to import 18 million bales of cotton from Trumberton, an Asian country. However, Umeron is able to import only 10 million bales because Umeron's import laws limit the amount of cotton and jute that can be imported. In the given scenario, the government of Umeron has imposed a(n) _____ to restrict international trade.

In foreign licensing, licensors run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement.

Describe absolute advantage and comparative advantage with examples.

Which of the following companies is involved in foreign licensing?

In the context of international trade restrictions, _____ are taxes levied against imports.

Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. However, when Hestonia faced an economic downturn and its citizens began to reduce their expenditures, Merticao began to focus more on its domestic market. As a result, Merticao was able to survive the loss of its primary market because of _____ in global trade.