FINAL: Section 3: The World Marketplace, International Busi

 ________ are taxes levied against imports.

• Embargos

• Tariffs

• GATT

• WTO

Which of the following statements is true of international trade?

• It increases a firm's dependence on its domestic economy.

• It offers companies an invaluable source of new ideas.

• It increases the economic risk for multinational companies.

• It reduces a firm's opportunity to tap into growing new markets.

When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product. 

• Money Cost

• Opportunity Cost

• Sunk Cost

• Differential Cost

Unless they face major trade barriers, the industries in any country tend to produce products for which they have a _____, which means that they tend to turn out those goods that have the lowest opportunity cost compared to other countries.

• comparative advantage

• balance of payments surplus

• positive balance

• trade surplus

 When the total value of a nation's exports is higher than the total value of its imports, that country has a(n) _____.

• absolute advantage

• trade surplus

• trade deficit

• comparative advantage

In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations.

• liquidity ratio

• exchange rate

• countertrade ratio

• discount rate

Quistor Inc., a company based in the country of Waltefa, contracts with a small-scale supplier in the country of Carlesna to manufacture its computers and tablets that are sold across the world. This strategy by Quistor Inc. illustrates _____.

• joint venture

• franchising

• exporting

• foreign outsourcing

_____ means buying products domestically that have been produced or grown in foreign nations.

• Importing

• Franchising

• Outsourcing

• Licensing

A _____ is formed when two or more companies share resources, risks, and profits without actually merging, to pursue specific opportunities.

• joint venture

• limited liability partnership

• sole proprietorship

• limited liability company

In the context of international trade restrictions, a(n) _____ is a total ban on the international trade of a certain item.

• voluntary export restraint

• tariff

• embargo

• quota