Exam 3: The World Marketplace: Business Without Borders

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice-the value of the production that a country gives up in order to produce the first product-represents the _____ of producing the first product.

In the context of foreign direct investment, a joint venture involves the merger of companies.

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini had a _____ in the last fiscal year.

In the context of international trade restrictions, a(n) _____ is a total ban on the international trade of a certain item.

Esterotia, a European country, requires red-tape-intensive licenses for all alcohol imports. In this scenario, which of the following types of trade restrictions does the country use?

Identify a true statement about exporting.

Who among the following is most likely to benefit when the dollar is strong and the euro is weak?

In the context of barriers to international trade, _____ include differences among countries in language, attitudes, and values.

Identify a true statement about foreign licensing.

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

In the fiscal year 2015-2016, Nescarto, an African country, imported goods worth $18 million and exported goods worth $20 million. It also borrowed $40 million from other countries. In this scenario, Nescarto had a _____ during 2015-2016.

In the context of global trade, which of the following statements is true of balance of payments?

Consider an exchange rate situation in which 1 Indian rupee equals 0.40 Japanese yen. Given this information, which of the following statements is true?

_____ refers to national policies designed to restrict international trade, usually with the goal of protecting domestic businesses.

The _____ is an organization of 188 member nations that promotes global economic cooperation and stable growth.

Brestine Inc., a European multinational corporation, wants to expand its customer base and decides to target the Asian market. As most Asian countries have comparatively low per capita income, the company introduces cheaper versions of its products that would appeal to the target market. In this scenario, Brestine Inc. is most likely facing the barrier of _____.

Define countertrade and explain its impact on a nation's economy.

Brentia, an East Asian country, exported goods worth $50 million and imported goods worth $5 million in the last fiscal year. It also provided a loan of $25 million to another country. In this scenario, Brentia most likely had a _____ in the last fiscal year.

Which of the following countries exemplifies the concept of opportunity cost?