BMGT 110F Final UPDATED ACTUAL
Exam Questions and CORRECT Answers
Importing - CORRECT ANSWER - Buying products from another country.
Exporting - CORRECT ANSWER - Selling products to another country.
Free trade - CORRECT ANSWER - The movement of goods an services among nations
without political or economic barriers.
Comparative advantage theory - CORRECT ANSWER - Countries should sell other
countries those products they produce most effectively and efficiently.
Absolute Advantage - CORRECT ANSWER - The advantage that exists when a country
has a monopoly on producing a specific product or is able to produce it more efficiently than all
other countries.
Balance of Trade - CORRECT ANSWER - The total value of a nations exports compared
to its imports,measured over a particular period of time.
Trade surplus - CORRECT ANSWER - A favorable balance of trade; occurs when the
value of a countries exports exceeds their imports.
Trade deficit - CORRECT ANSWER - An unfavorable balance of trade;occurs when the
value of a country's import ants exceed its exports.
Balance of payments - CORRECT ANSWER - The difference between money coming in
and money going out. Plus money flows from other factors.
, Dumping - CORRECT ANSWER - selling products in a foreign county at a lower pice
that those charged in the pro ducting country.
Licensing - CORRECT ANSWER - a global strategy in which a firm allows a foreign
company to produce for a small royalty fee.
Contract manufacturing - CORRECT ANSWER - A foreign countries production of
private-label goods to which a domestic company then attaches its brand name or trademark.
Joint venture - CORRECT ANSWER - A partnership in which two or more companies
join to undertake a major product.
Strategic alliance - CORRECT ANSWER - a long term partnership between two or more
companies established to help each company build competitive market strategies.
FDI (Foreign Direct Investment) - CORRECT ANSWER - The buying or permanent
property or businesses in foreign nations.
Foreign Subsidiary - CORRECT ANSWER - A company owned in a foreign country by
anther company called a "Parent Company"
Multinational Corporation - CORRECT ANSWER - An organization that manufactures
and markets products in many different countries and has multination stock ownership and
management.
SWFs (Sovereign wealth funds) - CORRECT ANSWER - Investment funds controlled by
governments holding large stakes in foreign companies.
Exchange Rate - CORRECT ANSWER - The value of ones nations currency relation to
the currencies of other countries.
Exam Questions and CORRECT Answers
Importing - CORRECT ANSWER - Buying products from another country.
Exporting - CORRECT ANSWER - Selling products to another country.
Free trade - CORRECT ANSWER - The movement of goods an services among nations
without political or economic barriers.
Comparative advantage theory - CORRECT ANSWER - Countries should sell other
countries those products they produce most effectively and efficiently.
Absolute Advantage - CORRECT ANSWER - The advantage that exists when a country
has a monopoly on producing a specific product or is able to produce it more efficiently than all
other countries.
Balance of Trade - CORRECT ANSWER - The total value of a nations exports compared
to its imports,measured over a particular period of time.
Trade surplus - CORRECT ANSWER - A favorable balance of trade; occurs when the
value of a countries exports exceeds their imports.
Trade deficit - CORRECT ANSWER - An unfavorable balance of trade;occurs when the
value of a country's import ants exceed its exports.
Balance of payments - CORRECT ANSWER - The difference between money coming in
and money going out. Plus money flows from other factors.
, Dumping - CORRECT ANSWER - selling products in a foreign county at a lower pice
that those charged in the pro ducting country.
Licensing - CORRECT ANSWER - a global strategy in which a firm allows a foreign
company to produce for a small royalty fee.
Contract manufacturing - CORRECT ANSWER - A foreign countries production of
private-label goods to which a domestic company then attaches its brand name or trademark.
Joint venture - CORRECT ANSWER - A partnership in which two or more companies
join to undertake a major product.
Strategic alliance - CORRECT ANSWER - a long term partnership between two or more
companies established to help each company build competitive market strategies.
FDI (Foreign Direct Investment) - CORRECT ANSWER - The buying or permanent
property or businesses in foreign nations.
Foreign Subsidiary - CORRECT ANSWER - A company owned in a foreign country by
anther company called a "Parent Company"
Multinational Corporation - CORRECT ANSWER - An organization that manufactures
and markets products in many different countries and has multination stock ownership and
management.
SWFs (Sovereign wealth funds) - CORRECT ANSWER - Investment funds controlled by
governments holding large stakes in foreign companies.
Exchange Rate - CORRECT ANSWER - The value of ones nations currency relation to
the currencies of other countries.
