BUSI 1301- W5

A country has a trade deficit when the ________.

• exchange rate of its currency with other currencies is fixed

• exchange rate of its currency with other currencies is variable

• value of its exports exceeds the value of its imports

• value of its imports exceeds the value of its exports

Which of the following is a main feature of protectionism?

• high levels of risks for domestic industries

• governmental intervention in trade

• increased risk for local workers

• compromise on national security

________ limit the amount of particular goods that countries allow to be imported during a given year

• Import subsidies

• Embargoes

• Import quotas

• Import tariffs

Providing short-term loans to countries that are unable to meet their financial obligations is a primary function of the International Monetary Fund

• True

• False

International companies can use ________ to shield some of their income from higher tax rates in their own countries

• fiscal incentives

• tax havens

• investment schemas

________ refers to assigning a wide range of generalized attributes to an individual based on membership in a particular culture or social group

• Ethnocentrism

• Stereotyping

• Protectionism

• Culture shock

A highly centralized approach to international expansion, with headquarters in the home country making all major decisions

• Global strategy

• Transnational strategy

• Multidomestic strategy

Purchasing goods or services from another country and bringing them into one’s own country

• Importing

• Exporting