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20 terms

ch 3

STUDY
PLAY
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