Exam 2: The Evolution of International Business

Agreement in which an exporter of goods or services to another country commits to import goods or services of corresponding value from that country is called ______.

The growth trends in China and India today illustrate the impact that international business has on blue-collar and white-collar workers in wealthy countries as relatively low-skill factory jobs as well as high-skill service profession jobs migrate overseas.

Foreign direct investment (FDI)in a country brings funds and business culture from abroad,creates new well-paying jobs,introduces innovative technologies,and enhances the skills of domestic workers.

An agreement where a large number of developed counties permit duty-free imports of a selected list of products that originate from specific countries is known as _____.

Scenario - The Audrey Firm The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention. In the past,the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C. -As one of the Audrey Firm's more prestigious clients,OPEC,which exemplifies an export cartel,requires constant overseeing to ensure it complies with the agreement arranged for export cartels.Which one of the following items is least likely to appear on this type of agreement?

Taxes on imports that are collected by a designated government agency responsible for regulating imports are called _____.

The decoupling of world economic order and the move to a multipolar world helps explain why China is now the world's largest recipient of FDI.

The two-way flow of exports and imports of goods is called ______.

It is estimated that for every billion dollars worth of exports from the United States _____ domestic jobs are created.

______ refers to an external shock or development that could drastically change or hasten the course of economic development.

Porter stresses the importance of domestic demand for goods and services when determining a nation's competitive advantage.When domestic demand remains high,the number of suppliers will also be high.

The oldest form of trade theory is called _____.

Scenario - Power Trip Unlimited,LLC Is it hurricane season? Is there a tsunami warning? Did an earthquake take place somewhere in the world? While these are not pleasant questions to ask,the Miami,Florida-based business Power Trip Unlimited needs to be ready to quickly respond to such events.This unique company offers a vast line of emergency generators and supplies to help individuals caught in the devastation these types of natural occurrences can create.Staffed by experts in the generator field,Power Tripp Unlimited has assisted numerous people begin the recovery process in the aftermath of a calamity.In the past year alone,sales for this company have surpassed every goal that was set.This financial boom occurred while the company conducted sales only in the U.S.market. Power Trip's management team now realizes that foreign markets such as India and China offer incredible opportunities for the company.Both foreign nations desire to engage in trade with the company in exchange for allowing its products to be introduced within their borders.India and China have agreed to supply Power Trip with several necessary components for its generators in exchange for allowing the company free operations inside their national boundaries.Power Trip realizes there are numerous challenges facing the company in the foreign market arena.But guided by the belief in the expertise of its staff and the quality of its products,it is ready to face any challenges foreign markets put in front of them.This company stands eagerly poised awaiting its first international sale. -The agreement between Power Trip Unlimited,China,and India to engage in foreign trade will ultimately provide greater opportunities for consumers of Power Trip's products.Which one of the following is least likely to be considered a benefit of this trade agreement?

Scenario - The Audrey Firm The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention. In the past,the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C. -Many of the clients engaging the services of the Audrey Firm practice managed trade.All of the following would most likely be a practice these nations engage in when conducting trade with other nations except which one?

The world's two largest economies in terms of national income in the early-19^th century were _____.

The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called _____.

Suppose the United States exports automobiles to Saudi Arabia and agrees to import a corresponding value of oil from Saudi Arabia.This is an example of

The key assumptions for the H-O theory to work are: (1)perfect immobility of factors of production among countries; and (2)_____.

The ability of one country that has an absolute advantage in the production of two or more goods (or services)to produce one of them relatively more efficiently than the other refers to ______.

Of the following statements about foreign direct investment,which is NOT true?