PBMF Ch 5 Global Business

Which is not a benefit of exporting?

• Reduce legal documents

• Realize potential new markets

• Increase profits

• Generate jobs

An absolute advantage exists when a country can produce goods more efficiently than _____.

• the previous year

• average

• with a floating currency

• another country

Balance of trade is _____.

• A. exports plus imports

• B. exports minus imports

• C. exports minus tariffs

• D. the same as the balance of payments

Most currencies today are _____.

• fixed

• restricted

• floating

• not influenced by economic factors

Which of the following is not a trade barrier?

• Embargo

• Bloc

• Tariff

• Quota

A group of countries that have reduced or eliminated trade barriers among themselves is a(n) ____.

• free-trade zone

• free-travel zone

• mutual trade area

• embargo zone

The ____ for international shipping is more complex compared to domestic shipping.

• packaging

• logistics

• absolute advantage

• trade agreement

Which of the following is not a business option to enter a foreign market?

• Licensing

• Franchising

• Comparative trade

• Joint venture

The person or company that buys the rights to sell another company’s goods or services in a specific area is a(n) ____. A. franchise B. franchisor C. franchisee D. joint venture partner

• franchise

• franchisor

• franchisee

• joint venture partner

Someone who translates a conversation between individuals who do not speak the same language is a(n) ____.

• interrogator

• interloper

• interoffice liaison

• interpreter