glo bus chapter 7 questions with correct answers

glo bus chapter 7 questions with correct
answers



absolute advantage - answer-the ability to produce a good using fewer inputs than
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another producer
v v




balance of trade - answer-the difference between a country's total exports and total
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imports
v




comparative advantage - answer-the ability to produce a good at a lower opportunity
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cost than another producer
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contract manufacturing - answer-private label manufacturing by a foreign company
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exports - answer-goods sold to other countries
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foreign direct investment - answer-a capital investment that is owned and operated by a
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vforeign entity v




foreign subsidiary - answer-a company owned in a foreign country by another company,
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vcalled the parent company
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international franchise - answer-agreement in which a domestic company (franchiser)
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vgives a foreign company (franchisee) the right to use its brand and sell its products.
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international joint ventures - answer-a partnership of two or more participating
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vcompanies that have joined forces to create a separate legal entity
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international strategic alliance - answer-an organizational relationship that allows
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vcompanies in different countries to pool resources and share risks as they enter new
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vmarkets

liscensing - answer-an owner's authorization or permission for another entity to be
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vtrademarked, copyrighted, etc. v v




multinational corporation - answer-an organization that manufactures and markets
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products in many different countries and has multinational stock ownership and
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multinational management
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