GLO BUS chapter 7 Exam Questions and Answers Latest Update 2024 (100% Pass)
absolute advantage - Answers the ability to produce a good using fewer inputs than another producer
balance of trade - Answers the difference between a country's total exports and total imports
comparative advantage - Answers the ability to produce a good at a lower opportunity cost than
another producer
contract manufacturing - Answers private label manufacturing by a foreign company
exports - Answers goods sold to other countries
foreign direct investment - Answers a capital investment that is owned and operated by a foreign entity
foreign subsidiary - Answers a company owned in a foreign country by another company, called the
parent company
international franchise - Answers agreement in which a domestic company (franchiser) gives a foreign
company (franchisee) the right to use its brand and sell its products.
international joint ventures - Answers a partnership of two or more participating companies that have
joined forces to create a separate legal entity
international strategic alliance - Answers an organizational relationship that allows companies in
different countries to pool resources and share risks as they enter new markets
liscensing - Answers an owner's authorization or permission for another entity to be trademarked,
copyrighted, etc.
multinational corporation - Answers an organization that manufactures and markets products in many
different countries and has multinational stock ownership and multinational management
non-tariff barriers - Answers non tax methods of increasing the cost or reducing the volume of imported
goods
non tradable goods and services - Answers products that are not easily tradable due to their inherent
characteristics
opportunity cost - Answers whatever must be given up to obtain some item
pollution haven - Answers when large industrialized nations seek to set up factories or offices abroad,
they will often look for the cheapest option in terms of resources and labor that offers the land and
material access they require
quota - Answers a limited or fixed number or amount of people or things, in particular.
absolute advantage - Answers the ability to produce a good using fewer inputs than another producer
balance of trade - Answers the difference between a country's total exports and total imports
comparative advantage - Answers the ability to produce a good at a lower opportunity cost than
another producer
contract manufacturing - Answers private label manufacturing by a foreign company
exports - Answers goods sold to other countries
foreign direct investment - Answers a capital investment that is owned and operated by a foreign entity
foreign subsidiary - Answers a company owned in a foreign country by another company, called the
parent company
international franchise - Answers agreement in which a domestic company (franchiser) gives a foreign
company (franchisee) the right to use its brand and sell its products.
international joint ventures - Answers a partnership of two or more participating companies that have
joined forces to create a separate legal entity
international strategic alliance - Answers an organizational relationship that allows companies in
different countries to pool resources and share risks as they enter new markets
liscensing - Answers an owner's authorization or permission for another entity to be trademarked,
copyrighted, etc.
multinational corporation - Answers an organization that manufactures and markets products in many
different countries and has multinational stock ownership and multinational management
non-tariff barriers - Answers non tax methods of increasing the cost or reducing the volume of imported
goods
non tradable goods and services - Answers products that are not easily tradable due to their inherent
characteristics
opportunity cost - Answers whatever must be given up to obtain some item
pollution haven - Answers when large industrialized nations seek to set up factories or offices abroad,
they will often look for the cheapest option in terms of resources and labor that offers the land and
material access they require
quota - Answers a limited or fixed number or amount of people or things, in particular.
