BADM 101 FINAL EXAM AND UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. What are the five trade partnerships?
Answer:
1. NAFTA- North America Free Trade Association
2. LAFTA- Latin American Free Trade Association
3. MERCOSUR- South American Free Trade Association
4. EU- European Union
5. ASEAN- Association of South-East Asian Nations
Question:
2. Importing
Answer:
The purchase of goods and services from foreign sources.
Example: The United States imports 63% of its computers from China.
Question:
3. Exporting
Answer:
The sale of goods and services to foreign markets.
Example: The United States sends 24% of its refined petroleum exports to Mexico.
Question:
4. What are four international trade barriers.
Answer:
Economic, political, social/cultural, and technological
Question:
5. International business
Answer:
The buying, selling, and trading of goods and services across national
boundaries.
Example: American Companies such as KFC have become widely popular in
China.
, Question:
6. Absolute advantage
Answer:
A monopoly that exists when a country is the only source of an item, the only
producer of an item, or the most efficient producer of an item.
Example: Because South Africa has the largest deposits of diamonds in the world,
one company, De Beers Consolidated Mines Ltd., controls a major portion of the
world's diamond trade and uses its control to maintain high prices for gem-quality
diamonds.
Question:
7. Comparative advantage
Answer:
The basis of most international trade when a country specializes in products that it
can supply more efficiently or at a lower cost than it can produce other items.
Example: The United States has a comparative advantage in producing
agricultural commodities such as corn and wheat.
Question:
8. Outsourcing
Answer:
The transferring of manufacturing and other tasks, such as data processing, to
countries where labor and supplies are less expensive.
Example: The United States outsources jobs overseas where tasks can be
accomplished for lower costs.
Question:
9. Balance of Trade
Answer:
The difference in value between a nation's exports and its imports.
Example: The United States imports more products than it exports, resulting in a
trade deficit.
Question:
10. Trade Deficit
Answer:
A nation's negative balance of trade, which exists when that country imports more
products than it exports.
Example: The United States had a $295.5 million trade deficit with China in 2011.
QUESTIONS AND CORRECT ANSWERS
Question:
1. What are the five trade partnerships?
Answer:
1. NAFTA- North America Free Trade Association
2. LAFTA- Latin American Free Trade Association
3. MERCOSUR- South American Free Trade Association
4. EU- European Union
5. ASEAN- Association of South-East Asian Nations
Question:
2. Importing
Answer:
The purchase of goods and services from foreign sources.
Example: The United States imports 63% of its computers from China.
Question:
3. Exporting
Answer:
The sale of goods and services to foreign markets.
Example: The United States sends 24% of its refined petroleum exports to Mexico.
Question:
4. What are four international trade barriers.
Answer:
Economic, political, social/cultural, and technological
Question:
5. International business
Answer:
The buying, selling, and trading of goods and services across national
boundaries.
Example: American Companies such as KFC have become widely popular in
China.
, Question:
6. Absolute advantage
Answer:
A monopoly that exists when a country is the only source of an item, the only
producer of an item, or the most efficient producer of an item.
Example: Because South Africa has the largest deposits of diamonds in the world,
one company, De Beers Consolidated Mines Ltd., controls a major portion of the
world's diamond trade and uses its control to maintain high prices for gem-quality
diamonds.
Question:
7. Comparative advantage
Answer:
The basis of most international trade when a country specializes in products that it
can supply more efficiently or at a lower cost than it can produce other items.
Example: The United States has a comparative advantage in producing
agricultural commodities such as corn and wheat.
Question:
8. Outsourcing
Answer:
The transferring of manufacturing and other tasks, such as data processing, to
countries where labor and supplies are less expensive.
Example: The United States outsources jobs overseas where tasks can be
accomplished for lower costs.
Question:
9. Balance of Trade
Answer:
The difference in value between a nation's exports and its imports.
Example: The United States imports more products than it exports, resulting in a
trade deficit.
Question:
10. Trade Deficit
Answer:
A nation's negative balance of trade, which exists when that country imports more
products than it exports.
Example: The United States had a $295.5 million trade deficit with China in 2011.
