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International business involves the buying, selling, and trading of goods and services across national boundaries.

True

Direct investment is the least risky and least expensive way to participate in foreign trade.

False

Licensing is a way of entering the international marketplace without spending large amounts of money abroad.

True

Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.

True

Customizing products, promotion, and distribution according to cultural, technological, and national differences indicates a

multinational strategie

When Solar Tech, Inc., of Taos, New Mexico, sells thin film solar panels to a firm in Tokyo, Japan, Solar Tech

is exporting the panels.

Why was the World Bank formed?

To loan money to underdeveloped and developing countries

A trade advantage with the best chance of surviving is one based on

a monopoly of a resource

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

a direct investment

Which of the following countries was an original member nation of APEC?

Japan

Because Colombia can produce coffee so much more efficiently than other items produced there, it has which of the following advantages?

Comparative

If Peru wants to purchase machine parts from a German company but does not have any euros, it will probably borrow the euros from which of the following institutions?

International Monetary Fund

A group of nations or companies that band together to act as a monopoly is known as a

Cartel

When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplifies a

strategic alliance

Which of the following is formally called the International Bank for Reconstruction and Development?

World Bank

A change in administration in a foreign government that is hostile to foreign trade is an example of a

political barrier

A corporation that operates in several countries but without significant ties to any of them is a(n)

multinational

The difference between the flow of money into and out of a country is called its

Balance of payments

Which of the following is not something that the International Monetary Fund does?

Provides individual home and auto loans

Many businesspeople today try to "think locally, act globally."

False

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