BUS-110 Chapter 3 Study Guide
Questions with Accurate Answers
__________ is the world's largest exporter. correct answer China
A company that uses a strategy of selling its products to a distributor in another
country would be using correct answer exporting
A country exports $75 million worth of steel to the United States and sells it for
$60 million in order to establish a new market in the United States. This is an
example of correct answer dumping.
A trade deficit is also referred to as a(n) correct answer unfavorable balance of
trade.
Americans are often accused of ethnocentricity. This means correct answer
Americans feel their culture is superior to others.
As a global company, Electra Bikes sells its products to other countries. This
process is referred to as correct answer exporting
As a strategy for reaching global markets, licensing provides the licensor with
several advantages. One advantage is correct answer the cost of producing and
marketing the product in a foreign market is significantly reduced.
Because of the high volume of bicycles as a common form of transportation in
Beijing and Shanghai, Carl wants to sell his bicycle horns in these foreign markets.
Currently, the U.S. dollar is trading at a higher rate than the Chinese yuan.
, Economically speaking, how are Carl's prospects? correct answer It depends. The
price of products in foreign markets is not dependent on the value of currency; it
is only driven by the demand for goods and services.
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks,
such as correct answer questionable safety and quality issues with finished
products.
Buying products produced in another country is known as correct answer
importing.
Choose the best reason for countries to participate in foreign trade correct
answer No nation can produce all the products its people want and need.
Electra Bikes is an American brand with a global presence. Which of the following
trade agreements allowed Electra Bikes to expand its business by opening a new
market in Canada? correct answer NAFTA
Even though the country faces political instability, an island nation with wide,
expansive beaches is a destination hub for cruise lines. Recently, a large theme
park company showed strong interest in buying land on this island with the intent
of building a park targeted toward families. The company wants to make a
commitment to the island, including the hiring of several hundred local
employees. It is using a global marketing strategy called correct answer foreign
direct investment.
GenBrands, a foreign maker of washing machine tubs and pumps, sells its parts to
several washing machine manufacturers in the United States. who brand them as
their own. This is called correct answer contract manufacturing.
Questions with Accurate Answers
__________ is the world's largest exporter. correct answer China
A company that uses a strategy of selling its products to a distributor in another
country would be using correct answer exporting
A country exports $75 million worth of steel to the United States and sells it for
$60 million in order to establish a new market in the United States. This is an
example of correct answer dumping.
A trade deficit is also referred to as a(n) correct answer unfavorable balance of
trade.
Americans are often accused of ethnocentricity. This means correct answer
Americans feel their culture is superior to others.
As a global company, Electra Bikes sells its products to other countries. This
process is referred to as correct answer exporting
As a strategy for reaching global markets, licensing provides the licensor with
several advantages. One advantage is correct answer the cost of producing and
marketing the product in a foreign market is significantly reduced.
Because of the high volume of bicycles as a common form of transportation in
Beijing and Shanghai, Carl wants to sell his bicycle horns in these foreign markets.
Currently, the U.S. dollar is trading at a higher rate than the Chinese yuan.
, Economically speaking, how are Carl's prospects? correct answer It depends. The
price of products in foreign markets is not dependent on the value of currency; it
is only driven by the demand for goods and services.
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks,
such as correct answer questionable safety and quality issues with finished
products.
Buying products produced in another country is known as correct answer
importing.
Choose the best reason for countries to participate in foreign trade correct
answer No nation can produce all the products its people want and need.
Electra Bikes is an American brand with a global presence. Which of the following
trade agreements allowed Electra Bikes to expand its business by opening a new
market in Canada? correct answer NAFTA
Even though the country faces political instability, an island nation with wide,
expansive beaches is a destination hub for cruise lines. Recently, a large theme
park company showed strong interest in buying land on this island with the intent
of building a park targeted toward families. The company wants to make a
commitment to the island, including the hiring of several hundred local
employees. It is using a global marketing strategy called correct answer foreign
direct investment.
GenBrands, a foreign maker of washing machine tubs and pumps, sells its parts to
several washing machine manufacturers in the United States. who brand them as
their own. This is called correct answer contract manufacturing.
