Quiz #3 - MIT

Involves purchasing products from other countries and reselling them in one’s own.

• Strategic Alliance

• Exporting

• Importing

• Comparative Advantage

Entails selling products to foreign customers.

• Exporting

• Importing

• FDI

• Joint Ventures

Why do Nations trade? Choose the best answer.

• To understand why certain countries import or export certain products

• To explain why countries import some products and export others.

• Because they don’t produce all the products that their inhabitants need.

• All of the above

It can make more of a product using the same amount of or fewer resources than other countries.

• Balance of trade

• Balance of payment

• Ccomparative Advantage

• Absolute Advantage

It can produce a product at a lower opportunity cost compared to another nation.

• Comparative Advantage

• Absolute Advantage

• Balance of Trade

• Balance of payment

A key that measures the effectiveness of international trade.

• Balance of Trade

• Strategic Alliance

• Balance of payment

• Comparative Advantage

Natural form of global expansion for companies that operate domestically according to a franchise model.

• Joint Ventures

• Franchise

• Company owned

• All of the above

It is a difference in communication styles that reflects in our __________.

• Communications

• Language

• Countries

• Culture

It tells you how much one currency is worth relative to another currency.

• Exchange Rate

• Buyers

• Foreign products

• None of the above

10. In figure 3.9 which country has the highest share of GDP year 2004?

• United states

• China

• Japan

• European Union