Unit 2 T/F Review

Match it! Select the correct answer from the pull down...Good luck!

The simplest, lowest-risk method of getting involved in international business is to form a joint venture with a company in another country

Throughout the world, most legal disputes have to be settled in court

The exchange rate of currencies always stays the same from one day to the next

A trade deficit is created by a favorable balance of payments

A country has a favorable balance of payments if the total flow of money going out of a country is greater than the total flow of money coming into the country

Most countries have more than one court system, and the rules and procedures are usually different in each system

The risk involved in importing is increased if you do not first determine whether there is any demand for the product you plan to import

One reason direct exporting is a relatively low-risk method of getting involved in international business is because the exporting company does not have an extensive investment in another country