| Term ____ refers to programs designed to ensure that export-dependent farmers in developing countries receive fair prices for their crops. Definition Fair trade | Term Law requiring that products sold in a particular country be at least partly made there. Definition Local Content Law |
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When an exporting firm establishes a location in a foreign country to sell its products more effectively it is referred to as which of the following?
branch office : A location that an exporting firm establishes in a foreign country in order to sell its products more effectively.
Which of the following is the ability to produce something more efficiently than any other country can?
Absolute advantage is a country’s ability to produce a given product more efficiently than can another country; comparative advantage is a country’s ability to produce a given product relatively more efficiently than can another country.
Which of the following is a situation in which firms choose foreign individuals or organizations to manufacture or market their products for them in another country?
In licensing arrangement , firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.
What is a product made or grown abroad but sold domestically?
An import is a product made or grown abroad but sold domestically.
What are examples of import?
The definition of import is to introduce or bring goods from one country to be sold in another. An example of import is introducing a friend from another country to deep fried Twinkies . An example of import is a shop owner bringing artwork back from Indonesia to sell at their San Francisco shop.
Is it better for a country to export more or to import more?
If you import more than you export, more money is leaving the country than is coming in through export sales. On the other hand, the more a country exports, the more domestic economic activity is occurring. More exports means more production, jobs and revenue.
Which of the following is a risk associated with licensing?
Which of the following is a major risk associated with licensing? The licensor may be inadvertently creating a future competitor in the form of the licensee .
Who is the largest importer in the global market today?
| Rank Country % of Global Imports | #1 USA 13.4% | #2 China 10.2% | #3 Germany 6.5% | #4 Japan 3.7% |
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What are the advantages associated with entering the market early?
Advantages associated with entering the market early which include demand pre-emption, economies of scale and switching costs .
Why would a nation choose not to produce everything its citizens want?
Supply and demand. why would a nation choose not to produce everything it’s citizens want? Since the dollars less it would be more expensive which can lead to the laws and customers and exports cost less . ... People in Britain might not want to buy from the US or have exports because for them I would be more expensive.
Which statement best describes how globalization is affecting the world?
The correct answer is letter B: The world is becoming more globalized and connected .
Can a country have absolute advantage in both goods?
It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods . An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.
What is a major drawback of sole proprietorships?
The biggest disadvantage of a sole proprietorship is the potential exposure to liability . In a sole proprietorship, the owner is personally liable for any debts or obligations of the business.
What is the first step in selecting a foreign market?
- Market potential: The first step in foreign market selection is assessing market potential. ...
- Level of competition: Firm must consider in selecting a foreign market is the level of competition in the market both the current level and the likely future level.
Is exporting a safer option?
Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. It’s a low-cost, low-risk option compared to the other strategies. ... Many government export-trade offices can help a company find a local distributor.
