Exam 3: The World Marketplace: Business Without Borders

Identify a true statement about the International Monetary Fund (IMF).

In the late 1970s, LarceCo, a tea seller, entered the Russian marketplace. LarceCo traded tea-based products for Russian-made vodka because of the lack of a tradable currency in the Soviet Union. This is an example of _____.

Which of the following is a specialized type of licensing?

When the total value of a nation's exports is higher than the total value of its imports, that country has a(n)_____.

Companies that choose to export products to a foreign country spend more to enter that market than companies that choose to build their own factories.

As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.

One of the major reasons India, China, and the Philippines attract multibillion-dollar investments is that:

International trade helps even out some of the resource imbalances among nations.

The _________ expresses the value of one nation's currency in terms of another nation's currency.

_________ is an international trade that involves the barter of products for products rather than for currency.

Pyoiunalek's, a U.S. restaurant chain, markets and endorses its business in Germany by offering buyers the rights to launch and operate the restaurant in their own country. It lends financial and marketing assistance to the buyers. Pyoiunalek's is employing the strategy of _____.

Define absolute advantage and comparative advantage. Explain how China has an absolute advantage over the United States and how the United States has a comparative advantage over China

_________ is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.

_________ are limitations on the amount of specific products that may be imported from certain countries during a given time period

Imported products carry the brand name of the importer.

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

Identify a true statement about balance of payments.

Which of the following is true of a partnership?

Who among the following is most likely to benefit in a case where there is a weak dollar against a euro?

Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.