FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Doing Business in Global Markets

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 41

True/False

Review LaterAdd Note

Review Later

Devaluation refers to a decline in the value of a nation's currency relative to other currencies.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Trade experts' concerns about trading with China include:

A) its small population size compared to other nations, which puts doubt in businesspeople's minds about the worthiness of the investment.
B) its political system, counterfeiting activities, and human rights abuses.
C) its ties with organized labor unions.
D) its economic philosophy that has changed from free market to command economy.

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

Importing is the selling of products to another country.

The three countries participating in NAFTA are:

Protective tariffs are designed to raise money for the government.

The balance of payments measures the inflows and outflows of money from tourism, foreign aid, military expenditures and foreign investments as well as flows resulting from exports and imports.

The second wave of offshore outsourcing is having a more negative effect on the U.S. job market.

Comparative advantage theory states that a country should sell to other countries those products that it produces most efficiently and buy from other countries those products it cannot produce as efficiently.

The theory of comparative advantage exists because:

Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:

__________ is lowering the value of a nation's currency relative to other currencies.

In recent years, the government of Saudi Arabia has invested over $900 billion in foreign companies, including several U.S. companies. This move constitutes the creation of a sovereign wealth fund, an emerging type of foreign direct investment.

Some firms will practice "dumping" in order to gain a foothold in a new market.

Free trade is the movement of goods and services between nations without political or economic barriers.

A nation has a ___________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the _____________.

A specialized organization that assists businesses in creating relationships with foreign customers and suppliers is known as a(n) :

Fred Bergsten of the Institute for International Economics estimates that every $1 billion of U.S. exports:

A favorable balance of trade occurs when the value of a country's exports exceeds the value of its exports.

China is currently one of the three largest exporters in the world today.