CHAPTER 1

Front

How has international trade changed since the end of World War II?

Back

International trade has increased steadily since this period of time.

Front

Which of the following scenarios would not be considered international business? A Chinese manufacturer sells toys to a large toy retailer in the United States., Intel sells its processors to a computer manufacturer in Korea., A large jewelry store in England purchases its diamonds from DeBeers in South Africa., A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky., French companies purchase crude oil from Saudi Arabia.

Back

A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky.

Front

The land of Cruise has very infertile soil but a large supply of oil. What action should Cruise take?

Back

specialize in the production of crude oil and trade this for grain and other food products.

Front

Which statement about Land is true? Although it lacks sources of timber and oil, Land has a plentiful supply of grapes for its many wineries.

Back

It has a comparative advantage in wine production.

Front

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Back

Japan would have an absolute advantage in electronics production.

Front

If____ is the ability to produce a specific product more efficiently than any other product.

Back

Comparative advantage

Front

A new country is formed in central Africa. It has no absolute advantage in crude oil, diamonds, or wool. However, it does manufacture high-quality bows and arrows for specialized safari adventures. Which of the following statement is true?

Back

The new country has a comparative advantage in the production of bows and arrows.

Front

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

Back

an absolute advantage

Front

Purchasing products or materials in other nations and bringing them into one’s own country is

Back

importing.

Front

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Back

exporting.