Business Test 1 Ch 3

Front 1

tf ability to produce a specific product more efficiently than any other nation is called comparative advantage

Back 1

F

Front 2

tf international business consists of all business activities that involve exchanges across national boundaries

Back 2

T

Front 3

tf balance of trade is the total value of a country's exports less the total value of its imports over some period of time

Back 3

T

Front 4

tf an argument for trade restriction is that it protects national security

Back 4

T

Front 5

tf the general agreement of tariffs and trade is an international organization whose goal is to reduce or eliminate tariffs and other barriers to world trade

Back 5

T

Front 6

selling & shipping of raw materials or products to other nations is called __

Back 6

exporting

Front 7

type of trade restriction that limits the amount of a particular good that may be imported into a country during a given period of time is __

Back 7

import quota

Front 8

organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is __

Back 8

economic community

Front 9

firm that operates on a worldwide scale is called__

Back 9

multinational enterprise

Front 10

which of the following arranges the scale of products to foreign intermediaries for a commission or fee

Back 10

export/import agent

Front 11

tf absolute advantage is the ability to produce a specific product more efficiently than any other products

Back 11

F

Front 12

tf balance of payments is the total value of a country's exports less the total value of its imports

Back 12

F

Front 13

tf exporting is purchasing raw materials or products in other nations and bringing them into one's own country

Back 13

F

Front 14

tf argument against trade restrictions is that they limit consumers' choices

Back 14

T

Front 15

tf licensing is a contractual agreement in which one firm permits another to produce and marketing its product and to use its brand name in return for a royalty or other compensation

Back 15

T

Front 16

reduction of the value of a nation's currency relative to the currencies of other countries is called______

Back 16

currency devaluation

Front 17

extends and guarantees credit to overseas buyers of american goods and services, guarantees short-term financing for export, and discounts negotiable instruments that arise from export transactions

Back 17

Eximbank

Front 18

argument against trade restriction is__

Back 18

misallocation of international resources

Front 19

international bank that makes short-term loans to countries experiencing balance-of-payment deficits is the __

Back 19

International monetary fund

Front 20

partnership with a foreign country that can provide immediate market knowledge and access reduced risk and control over product attributes is

Back 20

Joint venture