Exam 5: The Global Context of Business

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called a trade deficit. a positive balance of trade. an absolute advantage. a negative balance of payments. negative capital mobility.

What is protectionism? List and describe four protectionist measures.

Give an example of an absolute advantage.

With regard to the BRIC countries, it is correct to say that they all emphasize the export of raw materials. they all have a low level of industrialization at the moment, but are progressing rapidly. Russia is the strongest in terms of manufacturing. Brazil is at the front of the pack in terms of optimism and opportunity. All of these statements are correct.

McCain Foods developed single-sized portions of frozen vegetables to serve customers in South Africa that do not have proper refrigeration. This is an example of determining whether there is international demand for a product. modifying a product to fit a foreign market. determining the receptivity of a foreign market for a company's product. acquiring the necessary skills to do business abroad. bootstrapping.

What is the difference between absolute and comparative advantage?

Greencorp Ltd. sold the rights for production of 4 Star Soil to Soil X of Italy, and that company now produces the special mix of fertilized soil and sells it in Italy. This arrangement is called a(n) independent agent. licensing arrangement. strategic alliance. branch office. equality relationship.

Which of the following best explains why a nation like Canada or Japan would export a particular product or service? That nation has multinational companies That nation has an absolute advantage That nation has a positive balance of trade That nation has a negative balance of trade All of these

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue. Which of the following, if true, would strengthen this argument? Contractual relationships with foreign companies usually involve many rounds of negotiations. Contractual relationships are less expensive to enter into than direct investment. Compared to direct investment, contractual relationships make business less subject to unpredictable changes. Compared to other forms of entry into international markets, contractual relationships tend to be risky. Foreign companies in contractual relationships may behave unpredictably at future points in time.

Which of the following items is least likely to impact a nation's balance of payments? Gains or losses in exchanges of international currencies An increase in the GDP Money spent by tourists Trade deficits or surpluses Foreign aid programs

Explain the two forms of competitive advantage and provide examples of each.

List the BRICS countries.

Selling a product abroad for less than the cost of production is referred to as direct foreign investment. setting up a business office. dumping. imposing tariffs. setting up quotas.

Over the past few decades, Canada's overall trade balance has generally been favourable, but only because we export so much more to the U.S. than we import from the U.S.

Upper middle-income countries are defined as those with per capita income between US$4036 and US$12 475. those with per capita income between US$5210 and US$8210. those with per capita income between US$765 and US$21 345. those with per capita income between US$3595 and US$11 115. those with per capita income between US$205 and US$9386.

What is an expected result when a nation devalues its currency? Export sales of its products decline. The number of independent agents declines. Export sales of its products increase. No result is more likely than any other. Export sales of its products will be unchanged.

Which of the following international organizational strategies means buying or establishing tangible assets in another country? Independent agency Opening branch offices Providing licensing arrangements Forming strategic alliances Foreign direct investment

Canada prohibits the importing of ivory from any foreign nation. This is a(n) local content law. subsidy. tariff. quota. embargo.

Which of the following is correct with respect to the BRIC countries? Russia is the dominant country in the group. There is very little coordination between the BRIC countries, and they do not act like a unit. All of the BRIC countries put a heavy emphasis on exporting commodities. In terms of opportunities and optimism, Brazil leads this group. Brazil is the most corrupt of the BRIC nations.

What countries are covered under NAFTA?