hoja 4

Question 1

favorable trade balance / trade surplus.

Answer 1

When the quantity exported exceeds the quantity imported

Question 2

adverse trade balance / trade deficit

Answer 2

If the import of goods exceeds the export

Question 3

The Department of Trade and Industry recommended that companies should ask themselves 5 questions

Answer 3

1. How do you reach customers?
2. How is it possible to sell in this market?
3. What printed sales material is needed?
4. How should advertising be done?
5. How will the service be provided after the sale?

Question 4

Important reasons why companies benefit from sales in the international market

Answer 4

● Trade due to lack of availability of a specific product.
● Trade due to international differences in comparative costs.
● Trade due to product differentiation.

Question 5

Multinational market

Answer 5

Relates to companies whose business interests, manufacturing plants and offices are dispersed around the world.

Question 6

International market

Answer 6

Covers companies that have made strategic decisions to enter foreign markets.

Question 7

Export

Answer 7

Where they view exporting as a peripheral activity, with export sales volume of less than 20%.

Question 8

Intermediary

Answer 8

All persons and organizations that offer the service of representation between sellers and buyers.

Question 9

Agent

Answer 9

Company or individual acting on behalf of another. This is one of the main forms of representation abroad.

Question 10

Distributors

Answer 10

They act in a different capacity from agents
They buy and sell goods, whereas agents work mainly on commission.