BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
As an evolution of international trade, globalization involves: -
CORRECT ANSWERS ✔✔a shift toward a more integrated world
economy
Comparative and absolute advantage are competitive advantage
concepts that determine production and trading decisions. Absolute
advantage is based on ________; comparative advantage is based on
________. - CORRECT ANSWERS ✔✔Resource exclusivity or factor
productivity; relative opportunity cost
When countries engage in trade, they specialize in the production of
the goods in which they have a ________ advantage. Goods and
services are produced where the opportunity cost is ________. -
CORRECT ANSWERS ✔✔competitive; lowest
When countries specialize in producing goods they are most efficient
at, and trade for their other goods from trading partner countries, the
arrangement demonstrates: - CORRECT ANSWERS ✔✔the Law of
Comparative Advantage.
The key drivers advancing globalization are: - CORRECT ANSWERS
✔✔technical, cultural, and economic advances.
,BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
If your country is the single, only source of a given product, good or
service, you are said to have: - CORRECT ANSWERS ✔✔absolute
advantage.
Balance of trade and balance of payments are both ways of measuring
the impact of global trade on a country's economy. What differentiates
the two measures is that balance of trade is ________ and balance of
payments is ________. - CORRECT ANSWERS ✔✔The net of exports
minus imports; net of money inflow minus money outflow
A country is said to have a trade deficit when: - CORRECT ANSWERS
✔✔value of its imports exceeds the value of its exports
Countertrade is a way of facilitating trade in circumstances when
currency isn't a viable form of payment. Countertrade transactions are
settled with: - CORRECT ANSWERS ✔✔exchange of goods and
services
Countertrade is the exchange of goods and services without: - CORRECT
ANSWERS ✔✔exchanging currency
When more goods and services are exported than imported it is known
as a: - CORRECT ANSWERS ✔✔trade surplus.
,BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
Countries wishing to know the net of their exchange of goods rely on
which equation? - CORRECT ANSWERS ✔✔Balance of Trade
There are a number of strategies a business can use to gain access to
foreign markets. Exporting is considered to be ________ means of
entering a new market. - CORRECT ANSWERS ✔✔the fastest and
the least expensive
Licensing and franchising are two options for gaining access to global
markets. Licensing is generally used with ________; franchising is
generally used to "export" ________. - CORRECT ANSWERS
✔✔intangible goods; branded product or service
Foreign direct investments FDI can take one of two forms: a
"greenfield" (new) venture or a merger with or acquisition of an
existing foreign business. Relative to other strategies for entering a
foreign market, using foreign direct investments is considered to be a
________ option. - CORRECT ANSWERS ✔✔strategic choice in the
sense of control and long-term potential
Joint ventures and foreign strategic alliances are approaches used with
large-scale, capital-intensive projects in global markets. Which of the
following situations best reflects a joint venture? - CORRECT ANSWERS
✔✔A new business is established with equal ownership where one
party has in-country expertise
, BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
Jack has become a franchisee of a Sonic in his local community. This has
enabled him to have access to ________, in order to sell the products
under the Sonic name. - CORRECT ANSWERS ✔✔the knowledge,
processes, and trademarks of Sonic
Which of the following establishes a new business that is jointly owned
by two or more otherwise independent businesses? - CORRECT
ANSWERS ✔✔a joint venture
Because the level of commitment and investment associated with
Foreign Direct Investments is so high, companies: - CORRECT ANSWERS
✔✔expend a great deal of time and effort scrutinizing potential
opportunities.
A company acquires goods or products from another country and sells
them in domestic markets. This is an example of: - CORRECT ANSWERS
✔✔importing.
In both licensing and franchising situations, the licensee and franchisee:
- CORRECT ANSWERS ✔✔gain a competitive advantage.
Which of the following best represents the impact of sociocultural
forces on global trade? - CORRECT ANSWERS ✔✔Values differ
Answers ( Latest 2025 )
As an evolution of international trade, globalization involves: -
CORRECT ANSWERS ✔✔a shift toward a more integrated world
economy
Comparative and absolute advantage are competitive advantage
concepts that determine production and trading decisions. Absolute
advantage is based on ________; comparative advantage is based on
________. - CORRECT ANSWERS ✔✔Resource exclusivity or factor
productivity; relative opportunity cost
When countries engage in trade, they specialize in the production of
the goods in which they have a ________ advantage. Goods and
services are produced where the opportunity cost is ________. -
CORRECT ANSWERS ✔✔competitive; lowest
When countries specialize in producing goods they are most efficient
at, and trade for their other goods from trading partner countries, the
arrangement demonstrates: - CORRECT ANSWERS ✔✔the Law of
Comparative Advantage.
The key drivers advancing globalization are: - CORRECT ANSWERS
✔✔technical, cultural, and economic advances.
,BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
If your country is the single, only source of a given product, good or
service, you are said to have: - CORRECT ANSWERS ✔✔absolute
advantage.
Balance of trade and balance of payments are both ways of measuring
the impact of global trade on a country's economy. What differentiates
the two measures is that balance of trade is ________ and balance of
payments is ________. - CORRECT ANSWERS ✔✔The net of exports
minus imports; net of money inflow minus money outflow
A country is said to have a trade deficit when: - CORRECT ANSWERS
✔✔value of its imports exceeds the value of its exports
Countertrade is a way of facilitating trade in circumstances when
currency isn't a viable form of payment. Countertrade transactions are
settled with: - CORRECT ANSWERS ✔✔exchange of goods and
services
Countertrade is the exchange of goods and services without: - CORRECT
ANSWERS ✔✔exchanging currency
When more goods and services are exported than imported it is known
as a: - CORRECT ANSWERS ✔✔trade surplus.
,BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
Countries wishing to know the net of their exchange of goods rely on
which equation? - CORRECT ANSWERS ✔✔Balance of Trade
There are a number of strategies a business can use to gain access to
foreign markets. Exporting is considered to be ________ means of
entering a new market. - CORRECT ANSWERS ✔✔the fastest and
the least expensive
Licensing and franchising are two options for gaining access to global
markets. Licensing is generally used with ________; franchising is
generally used to "export" ________. - CORRECT ANSWERS
✔✔intangible goods; branded product or service
Foreign direct investments FDI can take one of two forms: a
"greenfield" (new) venture or a merger with or acquisition of an
existing foreign business. Relative to other strategies for entering a
foreign market, using foreign direct investments is considered to be a
________ option. - CORRECT ANSWERS ✔✔strategic choice in the
sense of control and long-term potential
Joint ventures and foreign strategic alliances are approaches used with
large-scale, capital-intensive projects in global markets. Which of the
following situations best reflects a joint venture? - CORRECT ANSWERS
✔✔A new business is established with equal ownership where one
party has in-country expertise
, BADM Exam 3 Study Set Question &
Answers ( Latest 2025 )
Jack has become a franchisee of a Sonic in his local community. This has
enabled him to have access to ________, in order to sell the products
under the Sonic name. - CORRECT ANSWERS ✔✔the knowledge,
processes, and trademarks of Sonic
Which of the following establishes a new business that is jointly owned
by two or more otherwise independent businesses? - CORRECT
ANSWERS ✔✔a joint venture
Because the level of commitment and investment associated with
Foreign Direct Investments is so high, companies: - CORRECT ANSWERS
✔✔expend a great deal of time and effort scrutinizing potential
opportunities.
A company acquires goods or products from another country and sells
them in domestic markets. This is an example of: - CORRECT ANSWERS
✔✔importing.
In both licensing and franchising situations, the licensee and franchisee:
- CORRECT ANSWERS ✔✔gain a competitive advantage.
Which of the following best represents the impact of sociocultural
forces on global trade? - CORRECT ANSWERS ✔✔Values differ
