Exam 3: Exploring Global Business

One of the consequences of trade restrictions is misallocation of international resources.

What is a strategic alliance? What is its major advantage?

An international organization formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the _____.

Who are the top two export partners of the United States?

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

International business includes all business activities that involve exchanges across state boundaries.

What are some advantages of licensing as a method of entering international business?

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n) _____.

Mexico is experiencing balance-of-payments deficits and is seeking financial support.Mexico probably should seek assistance from

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

American automakers are concerned about the availability of so many foreign cars to U.S.consumers, and that their chances to sell their own cars are limited.To correct the situation, they encourage Congress to impose a(n) _____.

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country.Gillette expects a royalty from its partner in Bangladesh.Which arrangement will be the best choice for Gillette?

What are the arguments against trade restrictions? Are these arguments valid? Explain.

U.S.trade restrictions benefit only a few industries while harming many others.

The United Kingdom sells industrial supplies and materials to many nations around the world.The United Kingdom thus engages in _____.

By definition, every country has a comparative advantage in some product.

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

What types of products did GATT focus on during the Kennedy Round?

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Purchasing products or materials in other nations and bringing them into one's own country is _____.