Chapter 4.2 Vocabulary Question Preview (ID: 20462)


Why How Companies Conduct International Trade. TEACHERS: click here for quick copy question ID numbers.

Being able to produce by itself all of the products and services it needs or that it's people want is...
a) Self-sufficient
b) Absolute advantage
c) Comparitive advantage
d) Balance of trade

An absolute advantage exsists when one country has a monopoly on producing a product more cheaply or efficiently than any other country can?
a) True
b) False
c)
d)

When a country sells to other countries those products and services it produces most cheaply or efficiently and buys from other countries those it does not produce most cheaply or efficiently is..
a) Balance of trade
b) Balance of payments
c) Comparative advantage
d) None of the above

The value of a countries exports compared to the value of its imports measured over a particular period of time is...
a) Trade surplus
b) Balance of checks
c) Trade deficit
d) Balance of trade

A trade deficit is also called a favorable balance of trade?
a) True
b) False
c)
d)

A trade deficit can also be called...
a) Favorable balance of trade
b) Unfavorable balance of trade
c) Balance of payments
d) All of the above

The balance of payments is determined by measuring..
a) the difference between the money coming into a country
b) the money going out of the country
c) money flowing in and out from foreign aid, tourism, foreign investment, military investment, and other factors
d) All of the above

When money flows into a country then flows out it is called..
a) Balance of payments surplus
b) Balance of payments
c) Balance of payments deficit
d) Trade deficit

A balance of payments deficit exsists when more money flows out of the country then flows in?
a) True
b) False
c)
d)

Countertrading is defined as..
a) favorbale balance of payments
b) unfavorbale balance of payments
c) bartering goods for goods (or services)
d) None of the above

What are offices located in major metropolitan areas throughout the United States that provide export assistance for small and medium sized businesses seeking to market their products to foreign countries called?
a) Foregin markets
b) Exporting
c) Export Mangement Companies
d) Export Assistance Centers

Do export management companies hurt establishing trading relationships?
a) True
b) False
c)
d)

When a company allows a foreign company to pay a fee and a share of the profits in return for using the company's brand name and a package of materials and services is called?
a) Franchising
b) Foreign licensing
c) Outsourcing
d) Global outsourcing

Allowing a company to use your product for a fee is called what?
a) Franchising
b) Foreign licensing
c) Outsourcing
d) Global outsourcing

What is outsourcing?
a) Using suppliers inside the company to provide goods and services.
b) Shipping outside the US.
c) Offshoring.
d) Using suppliers outside the company to provide goods and services.

Global outsourcing can also be called?
a) Offshoring
b) Contract manufacturing
c) Licensing
d) Franchising

A joint venture is when a foreign company shares the risks and rewards of starting a new enterprise together in a foreign company?
a) True
b) False
c)
d)

A foreign company that is totally owned and controlled by the parent company is?
a) Local base
b) Foreign Licensing
c) Foreign Subsidiary
d) All of the above

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