Question 1

Compare and contrast absolute advantage and comparative advantage.

Accepted Answer

The answer of Compare and contrast absolute advantage and comparative...

Question 2

Having set up factories, sales offices, and branch stores in several foreign nations, U.S.based Crenco has gone global through a form of expansion called a "joint venture."

Accepted Answer

Crenco has gone global through a form of expansion called "direct investment," which involves setting up factories, sales offices, and branch stores in foreign nations. A "joint venture" refers to a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, which is not described in the scenario provided.

Question 3

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.made products in its own country, using your name and your processes and perhaps your intellectual property.

Accepted Answer

This is the definition of an international licensing agreement.

Question 4

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage.
A) comparative
B) resource/input
C) absolute
D) hardcore technological

Accepted Answer

The answer of The country of Cretonia is the only...

Question 5

It is parents weekend and your parents will arrive at your dorm in an hour. There are two tasks left to be done: washing the dishes and vacuuming. You and your roommate have agreed to divide up the work. In the past, you have been able to do the dishes in 30 minutes and vacuum in 15 minutes. Your roommate takes 40 minutes to do the dishes and 60 minutes to vacuum. Based on this scenario:
A) you have an absolute advantage in both jobs and a comparative advantage in doing dishes.
B) your roommate has an absolute advantage in doing dishes and a comparative advantage in vacuuming.
C) you have an absolute advantage in both jobs and a comparative advantage in vacuuming.
D) neither of you has an absolute advantage in either tasks, and you have a comparative advantage in vacuuming.

Accepted Answer

The answer of It is parents weekend and your parents...

Question 6

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Accepted Answer

A strategic alliance is indeed a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Question 7

Explain the difference between importing and exporting.

Accepted Answer

The answer of Explain the difference between importing and exporting....

Question 8

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy

Accepted Answer

The answer of What role do balance of trade, trade...

Question 9

When nations continue to experience large and ever-growing trade deficits:
A) they will ultimately produce so much output that other countries will lose domestic jobs.
B) creditor nations will eventually stop taking IOUs and trade will cease.
C) their economy will automatically go bankrupt.
D) their currencies will eventually be worthless.

Accepted Answer

Creditor nations may eventually become reluctant to continue financing a country's trade deficits, fearing that the debtor nation might not be able to repay its debts. This could lead to a cessation of trade as creditor nations refuse to accept more IOUs, seeking to mitigate their risk.

Question 10

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Accepted Answer

Strategic alliances between firms from different countries can bring a variety of benefits, including access to new markets, sharing of knowledge and technology, and cost savings through economies of scale. By forming a strategic alliance with a German firm, a U.S. firm may be able to tap into the German firm's expertise in engineering or manufacturing, while the German firm can benefit from the U.S. firm's marketing prowess or distribution networks. Through these types of collaborations, both firms can achieve goals that they couldn't have accomplished on their own.

Question 11

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Accepted Answer

Strategic alliances can be informal or formal agreements between two or more organizations to work together in a mutually beneficial way. It can range from a simple partnership to a full-fledged joint venture.

Question 12

Explain a nation's balance of payments.

Accepted Answer

The answer of Explain a nation's balance of payments....

Question 13

The difference between a country's total outflows and inflows of money over a period of time is its _____.
A) balance of payments
B) balance of trade
C) domestic fluctuation
D) international trade balance

Accepted Answer

The balance of payments is a comprehensive record of all transactions made between individuals, businesses, and government bodies in one country with others over a specified period of time. It includes both the balance of trade (goods and services) as well as financial flows (investment and transfers) and is used to measure a country's economic relationship with the rest of the world.

Question 14

Japan's production and exporting expertise lies in the areas of _____.
A) electronics and automobiles
B) industrial goods and airplane parts
C) business services and computer encryption
D) soy products and plastic goods

Accepted Answer

Japan has a strong reputation for producing high-quality electronics such as televisions, smartphones, and computers, as well as for manufacturing automobiles. These industries have contributed significantly to Japan's export growth over the years.

Question 15

If a country buys more goods and services than it sells over a specified period of time, it has a _____.
A) trade surplus
B) trade deficit
C) unfavorable balance of payments
D) favorable balance of trade

Accepted Answer

If a country buys more goods and services than it sells over a specified period of time, it has a trade deficit. This means that its imports exceed its exports, resulting in a negative balance of trade.

Question 16

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

Accepted Answer

Foreign direct investment (FDI) involves a company making a long-term investment in a foreign market, such as setting up a subsidiary or acquiring a local company. FDI is typically driven by the size and attractiveness of the market, as companies seek to gain access to new customers, resources, and opportunities for growth. FDI can be expensive, as it often requires significant upfront costs and ongoing investment to establish and maintain operations in a foreign country.

Question 17

Under a franchising agreement between a U.S.based company and a foreign firm, in return for the rights to use its brand name and sell its products, the U. S. franchiser requires the foreign company to adhere to an established business model.

Accepted Answer

This is a common requirement in franchising agreements, as the franchiser wants to maintain consistency and quality control in its brand and products.

Question 18

Generally speaking, nations tend to _____.
A) exploit their production and trade advantages
B) benefit from specialization
C) trade their output based on what they do best
D) do all of these things

Accepted Answer

All of the given options are traits that are commonly observed in national economies, and they are all interconnected. Nations exploit their production and trade advantages, which often leads to specialization in certain areas. Through this specialization, nations are then able to trade their output based on what they do best. Therefore, all of these things are typically observed in nations.

Question 19

The country of East Anglia exports domestically made products and imports products that aren't available locally. When exports are compared to imports, the resulting _____, which shows that more dollar value is exported than imported, reveals a(n) _____.
A) balance of payments / trade deficit
B) balance of trade / trade deficit
C) balance of trade / trade surplus
D) balance of payments / accounting crisis

Accepted Answer

The balance of trade is the comparison between a country's exports and imports of physical goods. If a country exports more than it imports, it has a trade surplus. If it imports more than it exports, it has a trade deficit. Therefore, the resulting balance of trade, which shows that more dollar value is exported than imported, reveals a trade surplus. Choice A is incorrect because the balance of payments includes not just physical goods but also services, transfers, and investments. Choice B is incorrect because the balance of trade is not synonymous with the balance of payments. Choice D is incorrect because there is no mention of an accounting crisis in the scenario.

Question 20

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years, the stability of its _____ may be in jeopardy.
A) government
B) economy
C) currency
D) international relations

Accepted Answer

An unfavorable balance of payments could lead to a decline in the value of a country's currency, making it less stable.

Quiz 3: Business in a Global Environment

Compare and contrast absolute advantage and comparative advantage.

Having set up factories, sales offices, and branch stores in several foreign nations, U.S.based Crenco has gone global through a form of expansion called a "joint venture."

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.made products in its own country, using your name and your processes and perhaps your intellectual property.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage.

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Explain the difference between importing and exporting.

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy

When nations continue to experience large and ever-growing trade deficits:

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Explain a nation's balance of payments.

The difference between a country's total outflows and inflows of money over a period of time is its _____.

Japan's production and exporting expertise lies in the areas of _____.

If a country buys more goods and services than it sells over a specified period of time, it has a _____.

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

Under a franchising agreement between a U.S.based company and a foreign firm, in return for the rights to use its brand name and sell its products, the U. S. franchiser requires the foreign company to adhere to an established business model.

Generally speaking, nations tend to _____.

The country of East Anglia exports domestically made products and imports products that aren't available locally. When exports are compared to imports, the resulting _, which shows that more dollar value is exported than imported, reveals a(n) _.

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years, the stability of its _____ may be in jeopardy.