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5 Written questions

5 Matching questions

  1. trade surplus
  2. comparative advantage
  3. protectionism
  4. balance of payments deficit
  5. balance of trade
  1. a the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries
  2. b overage that occurs when the total value of a nations exports is higher than the total value of its imports
  3. c more money flows out of country than in
  4. d a basic measure of the difference between a nations exports and imports, including both goods and services
  5. e national policies designed to restrict international trade, usually with the goal of protecting domestic business

5 Multiple choice questions

  1. need to understand population, per capita income, economic growth, rate, currency exchange rate, and stage of economic development
  2. an agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses. typically involve less formal, less encompassing agreements than partnerships (only beneficial in countries that require local, political, and cultural knowledge as a core of doing business)
  3. a formal, typically long term agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses
  4. contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production
  5. international trade that involves the barter of products for products rather than for currency (20% of international commerce)

5 True/False questions

  1. tariffstaxes levied against imports


  2. importingbuying products from overseas that have already been produced, rather than contacting with overseas manufacturers to produce special orders


  3. foreign franchisinginvoloves a domestic firm granting a foreign firm the rights to produce and market it products or to use its trademark/ patents rights in a defined geographical area


  4. sociocultural differencedifference among countries/cultures in language, attitudes, and values


  5. absolute advantagewhen a country can produce more of a goode than other nations, using the same amount of resources