Exam 3: B: Exploring Global Business

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

The International Trade Administration (ITA) offers assistance and information to help exporters.

A tax that is levied on a foreign product entering a country is called an export tariff.

A complete halt to trading with a particular nation or in a particular product is called an embargo.

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Cultural barriers can impede acceptance of products in foreign countries.

A letter of credit is issued in favor of the importer.

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

A trading company provides a link between buyers and sellers in different countries.

U.S. trade restrictions benefit only a few industries while harming many others.

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Countertrade is losing its importance in international trade.

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

International business includes all business activities that involve exchanges across state boundaries.

Trading companies do not take title to products.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.