Exam 3: The World Marketplace: Business Without Borders

Prost was the first automobile company in the world to introduce child safety locks in its vehicles. This feature soon became a major selling point for consumers all over the world. As a result, other automobile companies began providing a similar feature in their vehicles. In this scenario, which of the following is most likely to have influenced other companies to install child safety locks?

Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.

Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?

A _____ is formed when two or more companies share resources, risks, and profits without actually merging, to pursue specific opportunities.

In the context of the strategies for reaching global markets, a(n) _____ is a firm that is offered the right to produce and market another firm's products if it agrees to specific operating requirements.

In the context of international trade, which of the following statements is true of comparative advantage?

In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations.

The balance of trade is also referred to as countertrade.

Alice, the global marketing director of a multinational electronic goods manufacturing firm, is assigned the task of expanding her firm in new markets. She learns that hiring labor is expensive and that the required technical manufacturing equipment is unavailable in the international market. In this scenario, which of the following is most likely affecting the global trade of Alice's firm?

Sloimekia can manufacture more of a certain kind of cloth than its neighboring countries, although they all have the same amount of resources for the cloth's production. In this scenario, which of the following statements is true of Sloimekia?

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

In _____, firms either acquire foreign firms or develop new facilities from the ground up in foreign countries.

Identify a true statement about balance of payments.

In the context of foreign direct investment, a _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

Pyoiunalek's, a restaurant chain, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, Pyoiunalek's is employing the strategy of _____ to reach global markets.

Trade restrictions were created to:

In the context of international trade restrictions, governments tend to use protective _____ to shelter industries that are crucial to the domestic economy.

The government of Lebitz, a European country, learns that low-priced textile imports from Pruneia, an Asian country, are affecting the sales of domestic textile companies. The Lebitzian government decides to levy a 6% tax on all textile goods imported from other countries. In this scenario, which of the following trade restrictions does the Lebitzian government impose?

Uniesia, an Asian company, wants to set up a production facility in Maurinia, an African country, because of the low labor costs in the country. However, Uniesia is unable to do so because of the situation of constant civil unrest in Maurinia. In the given scenario, Uniesia is most likely facing the barrier of _____.

Unless they face major trade barriers, the industries in any country tend to produce products for which they have a _____, which means that they tend to turn out those goods that have the lowest opportunity cost compared to other countries.