Global Business Chapter 5 questions and answers 2023

Global Business Chapter 5 questions and answers 2023 Export - CORRECT ANSWER-selling abroad Import - CORRECT ANSWER-buying from abroad Merchandise - CORRECT ANSWER-tangible products being traded Services - CORRECT ANSWER-Intangible services being traded Trade deficit - CORRECT ANSWER-An economic condition in which a nation imports more than it exports Trade surplus - CORRECT ANSWER-An economic condition in which a nation exports more than it imports Balance of Trade - CORRECT ANSWER-The aggregation of importing and exporting that leads to the county-level trade surplus or deficit. Modern Trade Theories - CORRECT ANSWER-The major theories of international trade that were advanced in the 20th century, which consist of product life cycle, strategic trade, and national competitive advantage of industries. Classical Trade Theories - CORRECT ANSWER-The major theories of international trade that were advanced before the 20th century, which consists of mercantilism, absolute advantage, and comparative advantage. Theory of Mercantilism - CORRECT ANSWER-A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer Protectionism - CORRECT ANSWER-The idea that governments should actively protects domestic industries from imports and vigorously promote exports. Free Trade - CORRECT ANSWER-The idea that free market forces should determine how much to trade with little ot no government intervention Theory of absolute advantage - CORRECT ANSWER-A theory that suggests that under free trade, a nation gains by specializing in economic activities in which it has an absolute advantage. Absolute Advantage - CORRECT ANSWER-The economic advantage one nation enjoys that is absolutely superior to other nations. Theory of Comparative Advantage - CORRECT ANSWER-A theory that focuses on the relative advantage in one economic activity that one nation enjoys in comparison with other nations. Comparative Advantage - CORRECT ANSWER-Relative advantage in one economic activity that one nation enjoys in comparison with other nations. Opportunity Cost - CORRECT ANSWER-Cost of pursing one activity at the expense of another activity, given that alternatives Factor endowment - CORRECT ANSWER-The extent to which different counties posses various factors of production such as labor, land, and technonoly Factory endowment theory - CORRECT ANSWER-A theory that suggests that nations will develop comparative advantages based on their locally abundant factors. Product life cycle theory - CORRECT ANSWER-A theory that accounts for changes in the patterns of trade over time by foreign on product life cycles. Strategic trade theory - CORRECT ANSWER-A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success. First mover advantage - CORRECT ANSWER-Advantage that first movers enjoy and d