International Trade and Foreign Direct Investment Quiz

What is the term for when a firm can produce a particular good more efficiently than any other firm?

• Specialization

• Absolute advantage

• Comparative advantage

• Dumping

What is the term for trading one product or service for another without using money?

• Multilateral

• Import restriction

• Barter

• Export subsidy

What does GATT stand for?

• General Association on Trade and Tariffs

• Global Agreement on Trade and Tariffs

• General Agreement on Tariffs and Trade

• Global Association of Trade and Tariffs

What is the term for the true cost of something, which includes what has to be given up in order to obtain it?

• Specialization

• Trade balance

• Protectionism

• Opportunity cost

What is the term for a government policy and laws restricting international trade?

• Import restriction

• Multilateral

• Export subsidy

• Protectionism

What is the term for a transaction in which one company buys another company?

• Joint venture

• Acquisition

• Merger

• Merge

What is the term for when an individual person or a company owns enough stock to choose the company's board, management, and policies?

• Controlling interest

• Parent company

• Deregulation

• Physical investment

What is the term for the country in which a company that makes an investment into a foreign company is based?

• Inflow

• Home country

• Host country

• Joint venture

What is the term for the value of inward direct investment made by nonresident investors in another country's economy?

• Foreign direct investment

• Inflow

• Greenfield investment

• Spillover effect

What is the term for when two companies join together for mutual gain in a collaborative business venture they own jointly?

• Acquisition

• Merger

• Joint venture

• Merge