BUSS 3421 International Trade Quiz

It is a condition of a producer where it is better suited for production of one good than another good. Which of the following is suitable to describe the statement above?

• A . Tariffs

• B. Trade Barrier

• C. Comparative Advantage

• D. International Trade Theory

___________ refers sale of good abroad at a price below their cost and below the price charged in the domestic market.

• A. Export Subsidies

• B. Dumping

• C. Transit Tariff

• D. Quota

_____________ is known as a tax levied on goods passing through the country.

• A. Transit Tariff

• B. Dumping

• C. Quota

• D. Export Subsidies

___________ is protected by tariffs and quotas in the short run.

• A. Consumer choice

• B. Price wars

• C. Foreign employment

• D. Domestic jobs

A limit on the number of cars that can be brought into the country called as _______________.

• A. voluntary export constraint

• B. custom duty

• C.import quota

• D. tariff

Importing more than exporting is ________________.

• A. balance of trade

• B. trade surplus

• C. balance of payment

• D. trade deficit

Which is the most traditional and well established form of operating in foreign markets?

• Exporting

• Importing

• Joint -venture

• Franchising

Companies such as Coca-Cola and Disney have achieved growth through:

• Licensing

• Joint-ventures

• Piggybacking

• Exporting

What is the main benefit of acquisitions over other hierarchical entry modes?

• An improved corporate image in foreign market

• Cheaper entry

• No corporate tax

• Rapid entry

In international marketing the main difference between a foreign branch and a foreign subsidiary is _______________

• A. a foreign branch is a local company owned and operated by a foreign company under the laws of the host country.

• B. a foreign branch purchases the products to be sold from the parent company at a price.

• C. a foreign subsidiary is a local company owned and operated by a foreign company under the laws of the host country.

• D. a foreign subsidiary is an extension and a legal part of the firm.