Exam 4: Competing in World Markets

AusterTech,a German company,produces computer parts and sells them to South American countries.AusterTech is engaging in the international business activity known as ________.

During the past decade,which of the following countries has experienced the greatest annual rate of GDP growth?

One effect of the North American Free Trade Agreement (NAFTA)is:

A less-developed nation is facing a financial crisis due to the rapid devaluation of its currency.Which of the following might aid this country?

Explain the advantages and disadvantages of imposing trade restrictions.

The hypothetical country of Eurica is experiencing severe competition to its domestic auto Industry in the form of foreign imports.Many jobs are threatened.Eurica places a 25 percent tariff on the price of imported cars.This type of tariff is known as a(n)________ tariff.

Assume a nation has a comparative advantage in the production of clothing.If the value of this country's currency rises,________.

Amit,CEO of Charter Chemical,has recognized the financial opportunities in China.Amit has hired a foreign freight forwarder to coordinate selling Charter Chemical's products outside Canada.Charter Chemical is now involved in ________.

The currency of all EU countries is the euro.

Because exchange rates are volatile,they are of little use to U.S.companies when establishing prices for their products overseas.

All of the following are part of the European community's plan to eliminate all barriers to free trade among its members with the exception of ________.

Identify and describe the major types of obstacles confronting international trade.

A country's trade balance is determined by comparing the total amount of its exports to its imports.

A large part of the Canadian economy's growth comes from ________.

Importing refers to selling domestically produced goods and services in foreign countries.

Although people in developing nations have lower per capita incomes than more highly developed nations,their __________ represents a lucrative market for global trade.

If the Canadian dollar gets stronger relative to the euro,what is the effect for Canadian exports and imports to and from European countries?

When McDonald's franchises into foreign countries,they are engaging in direct international investment.

A nation can have a(n)_____ in a product if it can supply it more efficiently and at a lower price.

Allison,a Canadian citizen,travels to Europe and spends $2,000 on souvenirs.She is contributing to the ________.