MBS > Int Bus > Ch4: International Trade

Most of the world merchandise trade is composed of trade in ________.

• minerals

• services

• manufactured goods

• agricultural products

A majority of the total world merchandise trade occurs among ________.

• middle-income and low-income economies

• high-income economies

• newly industrialized countries

• emerging markets

The danger of trade dependency is that ________.

• it often leads to the exploitation of developed countries

• political turmoils in a country might affect all dependent countries

• the countries involved in trade often get into rivalry over trade tariff issues

• ) it is difficult to end trade activities with current trade partners and find new trade partners

The condition that results when the value of a nation's exports is greater than the value of its imports is called ________.

• a trade deficit

• a trade surplus

• mercantilism

• dumping

Scenario: Better Mousetrap Inc.

Better Mousetrap Inc. is a manufacturing company that sells pest control products. Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S. market. Senior Vice President Marc Wallace, even recommended expanding sales overseas in order to increase company revenues.

 

9) In reviewing his fulfillment process, Jack realizes that different customers opt for different types of shipping based on their preferences. Which of the following would most likely help Jack provide better shipping service to his customers?

• introduce overnight delivery but at a very high cost

• reduce costs by implementing a cheaper but slower delivery method

• implement a universal delivery method to capitalize on efficiency gains

• offer customers a choice of delivery methods with different speeds and costs

International trade is the purchase, sale, or exchange of goods and services across national borders.

• TRUE

• FALSE

Most of the world's merchandise trade is composed of trade in agricultural products.

• TRUE

• FALSE

When a country's currency is weak relative to other nations, domestic products are more expensive than imports.

• TRUE

• FALSE

According to Adam Smith, international trade should be restricted by tariffs and quotas in order to give a country an absolute advantage.

• TRUE

• FALSE

One of the major pillars upon which the practice of mercantilism rested was ________.

• economies of scale

• pricing mechanism

• excessive imports

• trade surpluses