INTB DREXEL 200 Exam #1 Questions with correct
answers
Globalization - ✔✔Free trade agreements
Lower Tarrifs
World Customs Organization
OPEC
WTO
NON GOVT ORGANIZATIONS
WEF-Davos Group
Rise of Technology - ✔✔Rise of Internet Speeds
Reduction of Transportation- Air Freight is the cheapest form, Break Bulk Method,
and Containerization
Containerization - ✔✔Air Freight is the cheapest form, Break Bulk Method, and
Containerization
Markets - ✔✔Become a Global Customer
Paying taxes to foreign gov"t
Finding Growth of New Middle Class Markets
Home Market Saturated
Tariffs - ✔✔Three main tarriff barriers
Ad Valorem
Specific Duty
,Compound Rate of Duty
Ad Valorem - ✔✔Percentage of the Commercial Invoice
Specific Duty - ✔✔Per Unit Charged
Compound Rate of Duty - ✔✔Combination of Ad Valorem and Specifc Duty
Non Tarriff - ✔✔Three main monetary barriers
Blocked Currency
Differential Exchange Rates
Government Approval
Blocked Currency - ✔✔Barrier that doesn't allow one nation's currency to be
exchanged at all with another nation's currency
Differential Exchange Rate - ✔✔exchange rate for importation of a desirable
product
Government Approval - ✔✔A government must give to foreign exchange groups
that have the ability tom import foreign goods into that country
Economies of scale - ✔✔when existing competitors have a large hold on a
particular market that can make it difficult for new companies to enter the
market.
, Market barriers - ✔✔Three main market barriers
Economy of scale
lack of access to distribution channels
governmental policy
Lack of access to distribution channels - ✔✔need to incentives distributors in a
foreign marketplace
Government policy - ✔✔rules for operating in a foreign country that could your
market capabilities
permits, laws, fees etc.
Cost to Achieve Economies of Scale - ✔✔a. companies competitive advantage
b. Import Material to bring cost down
c. Access to Foreign Manufacturing to direct foreign investment
d. to access foreign market close to facility
Standardization - ✔✔Single Acceptable Worldwide
Unit Cost are Reduced
Cost of Devlopment
Building Brand Awareness
Competition - ✔✔a. Defend Home Market
b. Saturated
answers
Globalization - ✔✔Free trade agreements
Lower Tarrifs
World Customs Organization
OPEC
WTO
NON GOVT ORGANIZATIONS
WEF-Davos Group
Rise of Technology - ✔✔Rise of Internet Speeds
Reduction of Transportation- Air Freight is the cheapest form, Break Bulk Method,
and Containerization
Containerization - ✔✔Air Freight is the cheapest form, Break Bulk Method, and
Containerization
Markets - ✔✔Become a Global Customer
Paying taxes to foreign gov"t
Finding Growth of New Middle Class Markets
Home Market Saturated
Tariffs - ✔✔Three main tarriff barriers
Ad Valorem
Specific Duty
,Compound Rate of Duty
Ad Valorem - ✔✔Percentage of the Commercial Invoice
Specific Duty - ✔✔Per Unit Charged
Compound Rate of Duty - ✔✔Combination of Ad Valorem and Specifc Duty
Non Tarriff - ✔✔Three main monetary barriers
Blocked Currency
Differential Exchange Rates
Government Approval
Blocked Currency - ✔✔Barrier that doesn't allow one nation's currency to be
exchanged at all with another nation's currency
Differential Exchange Rate - ✔✔exchange rate for importation of a desirable
product
Government Approval - ✔✔A government must give to foreign exchange groups
that have the ability tom import foreign goods into that country
Economies of scale - ✔✔when existing competitors have a large hold on a
particular market that can make it difficult for new companies to enter the
market.
, Market barriers - ✔✔Three main market barriers
Economy of scale
lack of access to distribution channels
governmental policy
Lack of access to distribution channels - ✔✔need to incentives distributors in a
foreign marketplace
Government policy - ✔✔rules for operating in a foreign country that could your
market capabilities
permits, laws, fees etc.
Cost to Achieve Economies of Scale - ✔✔a. companies competitive advantage
b. Import Material to bring cost down
c. Access to Foreign Manufacturing to direct foreign investment
d. to access foreign market close to facility
Standardization - ✔✔Single Acceptable Worldwide
Unit Cost are Reduced
Cost of Devlopment
Building Brand Awareness
Competition - ✔✔a. Defend Home Market
b. Saturated
