International Business chpt #3

Which of the following is not a component of the Basic Business Structure as shown in the diagram?

• Ethics

• International Business

• Technology

• Accounting

According to the diagram, which element is directly above 'International Business' in the Basic Business Structure?

• Biblical Principles

• Communication/Coordination

• Management Principles

• Marketing

What is international business?

• The exchange of services within a single country

• The buying, selling, and trading of goods and services across national boundaries

• A local business that operates in a small region

• The process of hiring employees from different countries

Why do nations engage in international trade?

• To increase their military power

• To allow for the acquisition of raw materials and goods at favorable prices

• To establish political alliances

• To promote tourism

What is absolute advantage?

• A situation where a country has no competition in producing a good

• A monopoly that exists when a country is the only source or the most efficient producer of an item

• The ability of a country to produce a good at lower cost than another country

• The practice of selling goods below cost to undermine competitors

Why do nations engage in international trade?

• To increase their military power

• To acquire raw materials and goods at favorable prices

• To establish political alliances

• To reduce their production capabilities

What is the concept of Comparative Advantage?

• A country can produce all goods more efficiently than other countries

• A country specializes in products that it can supply less efficiently

• A country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items

• A country imports all goods to avoid domestic production

Why do nations engage in international trade?

• To increase their military alliances

• To acquire raw materials and goods at favorable prices

• To standardize their currency

• To reduce their cultural diversity

What is outsourcing?

• The process of hiring more employees within the company

• The act of expanding a company's operations into new countries

• The transferring of manufacturing or other tasks to countries where labor and supplies are less expensive

• The method of increasing product prices to gain higher profits

What is the process of selling goods and services to foreign markets known as?

• Importing

• Trading

• Exporting

• Exchanging