Exam 3: The World Marketplace: Business Without Borders

In the context of global trade, a balance of payments deficit means that:

Nescat Autos, an automobile manufacturing company, developed a secondary market for its products in a foreign country. This allowed the company to minimize its losses when its primary market failed to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Nescat Autos's decision to set up a market in another country?

Which of the following countries has a trade surplus?

In the context of international trade, often countries with the highest trade barriers have the least competition.

Clark and Nestor start a catering business together. They sign a legal contract that states that the business is owned by them. The agreement also states that they will have an equal share in the profits of the business and will be equally liable for any losses incurred by the business. This scenario exemplifies _____.

In the context of the barriers to international trade, which of the following is the best way to jump over sociocultural barriers?

Explain the functions of the World Trade Organization (WTO) and the World Bank.

In the context of the strategies for reaching global markets, which of the following statements is true of exporting?

Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter the market of Troyesna, a fast-developing country. The firm offers a small-scale producer in Tryoesna the right to produce and market its goods based on a set of specific operating functions and requirements. This scenario of Willister Computers illustrates _____.

Who among the following is most likely to benefit in a case where there is a weak dollar against a euro?

Foreign licensing helps circumvent government restrictions on importing in closed markets.

In the context of the barriers to international trade, per capita income is a key factor that determines the economic differences between two countries.

Which of the following statements is true of the World Trade Organization (WTO)?

The arguments for and against trade restrictions are called _____.

Which of the following strategies for reaching global markets allows firms to expand into foreign markets with little or no investment?

Compared to the United States, China and India have:

In the context of international trade, which of the following companies is facing the barrier of legal differences?

In the context of the strategies for reaching global markets, which of the following is a key risk of foreign outsourcing?

A firm that contracts with foreign producers has an obligation to ensure that those factories adhere to ethical standards.

Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positive response from consumers, which prompted Brex Mex, another food company, to introduce its own Szechuan flavored chips. In this scenario, which of the following is most likely to have influenced Brex Mex to produce a product similar to Negacho's?