Ch 3

Question 1

Why Nations trade?

Answer 1

Absolute advantage. Cooperative advantage. Outsourcing.

Question 2

What is absolute advantage ?

Question 3

What’s comparative advantage?

Question 4

What’s outsourcing?

Question 5

In what consists ‘ international business?

Question 6

What’s balance of trade?

Question 7

What’s trade deficit? Negative/positive

Question 8

What’s balance of payments ?

Question 9

Is trade deficit bad?

Answer 9

Not necessarily,

Question 10

What’s infrastructure?

Question 11

How does economic development may happen?

Question 12

What are the 4 international trade barriers?

Answer 12

Economic ethical legal political, social and cultural I technological barriers?

Question 13

What are exchange rates?

Question 14

Laws and regulations :

Question 15

Import tariffs:

Question 16

Fixed tariff:

Answer 16

Specific amount of money levied on each unit of product brought into country.

Question 17

Advalorem tariff:

Question 18

Protective tariffs:

Question 19

Exchange controls:

Question 20

Quota:

Answer 20

Limits the number of units of a particular product that can be imported into a country.

Question 21

Embargo:

Answer 21

Prohibits trade in a particular product.

Question 22

Dumping:

Answer 22

The act of a country or business sellin products at less than what to it costs produce them.

Question 23

Profit of dumping?

Answer 23

To enter the market first.

Question 24

Political barriers:

Answer 24

Seldom written down. Change rapidly, most consider relative instability of other countries.

Question 25

What is cartels?

Answer 25

A group of firms or nations that agrees to act as a monopoly and not compete with each other.

Question 26

What are some factors abt social and cultural barriers.

Answer 26

• Differences in spoken and written language. • Differences in body language and personal space. • Family roles differ in different societies. • Perceptions of time differ in other nations. • National and religious holidays and customs must be respected. • Most nations use the metric system.

Question 27

Factors abt technological barriers?

Answer 27

• Lack of technological infrastructure can create opportunities for business. • Technological advances create global marketing opportunities. • Changing technologies create new challenges and competition.

Question 28

What's the GATT?

Question 29

What's the WTO?

Question 30

What's the NAFTA?

Question 31

What's the usmca?

Question 32

What's the eu?

Question 33

What's the APEC?

Question 34

What's the ASEAN?

Question 35

World bank:

Question 36

International monetary fund :

Question 37

Trading companies:

Question 38

Exporting and importing:

Question 39

Countertrade agreements :

Question 40

Licensing:

Question 41

Franchising:

Question 42

Contract manufacturing?

Question 43

Out sourcing:

Question 44

Offshoring:

Question 45

Joint venture and alliances:

Question 46

Direct investment:

Question 47

Multinational corporation:

Question 48

Multinational strategy,

Question 49

Global strategy? (Globalization)

Question 50

Managing the challenges of global business.

Answer 50

Managers who can meet the challenges of creating and implementing effective and sensitive business strategies for the global marketplace can help lead their companies to success.