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Exam 3: Doing Business in Global Markets

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Question 31

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Today,there are more countries that have some form of absolute advantage in a product or service,than years ago.

A) True
B) False

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Question 32

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Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.

A) True
B) False

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Question 33

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As you round out your final year at the university,you are trying to decide on the last two business electives you need to take.You are leaning toward international marketing and international financing because you recall reading that Forrester Research estimates that more than three million jobs could move to global markets in the next ten years.

The country of New Florentina mines more fluorite each year than it needs for its own manufacturing purposes.Recently,a neighboring country complained that its manufacturing sites could buy fluorite from New Florentina cheaper than they could buy it from its own mines.A government trading expert's claim that New Florentina is dumping fluorite onto its neighbor's market is probably accurate.

Trade protectionism:

A __________ is a partnership in which two or more companies often from different countries) join together and share the risk and costs in order to undertake a major project.

Exporting is the selling of products to another country.

The principle of mercantilism encouraged nations to keep economics separate from politics.

In southern California,there are banana plantations.These plantations cannot produce all the bananas consumed by persons in the U.S.The fact that the U.S.grows and sells bananas gives it a comparative advantage in bananas.It is not an absolute advantage and that is why we choose to import bananas from other countries,as well.

A ________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

The Quinoa seed is in high demand in wealthier countries such as the U.S.and Japan.Approximately 97% of all Quinoa production comes from small farmers in Bolivia and Peru who farm at high elevations-8,000 feet or higher.The seed is considered highly nutritious.Mostly grown and harvested in Bolivia and Peru,and sold to markets in other countries,the seed is now considered an important __________ for these nations.The governments of Bolivia and Peru are hopeful that this product will increase the quality of life of their farmers.

Countries often use trade protectionism measures to protect their domestic industries from foreign competition.

The purchase of U.S.based Anheuser-Busch,by Belgian brewer InBev is an example of foreign direct investment.

The president of Auto Parts of America Corporation recently testified before Congress,urging them to limit the flow of imported automobile parts into the United States.He contended that these imports were priced lower than foreign producers were charging for them in their own countries.He believes foreign producers are:

Restrictive standards that detail exactly how a product must be sold in a country are examples of protective tariffs.

If visitors from Germany spend money at Orlando,Florida's Disney World,it will increase the U.S.'s unfavorable balance of payments.

Idle Time Gaming,Inc.needed silicon wafers that it knew could be massed produced efficiently by Silicon City,Inc. ,a start-up firm in Indi A.The Indian company needed MSG metallurgical grade silicon) in order to make the wafers which it knew it could get from a Chinese firm.The Chinese firm mostly owned by the Chinese government) agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time.This beneficial exchange is described as:

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports.Bogusland has:

Which of the following continents is home to the largest percentage of the world's population?

A disadvantage of creating a foreign subsidiary is the loss of control over technology and expertise used in the production of the product.