Act 2

What is the primary reason nations engage in international trade?

• To increase domestic unemployment

• To reduce competition

• To limit resource exploitation

• To satisfy domestic needs and wants

Which of the following is NOT a reason for importing goods?

• Local availability

• Excess domestic production

• Quality superiority

• Price advantage

What does 'Comparative Advantage' in international trade refer to?

• The ability to monopolize a market

• The ability to trade without tariffs

• The ability to produce all goods more efficiently

• The ability to produce goods at a lower opportunity cost

Which of the following is a form of international business?

• Domestic manufacturing

• Regional marketing

• Importing and exporting

• Local retailing

What is the main difference between licensing and franchising?

• Licensing is only for technology

• Franchising involves a parent company and stricter guidelines

• Licensing has stricter guidelines than franchising

• Licensing is for services, franchising is for products

What is a joint venture?

• A partnership between two companies in the same country

• A special type of strategic alliance for mutual gain

• A form of licensing

• A method of exporting goods

Which company is known for its extensive supplier network in the technology sector?

• Samsung

• Apple

• Sony

• Microsoft

What is one of the main benefits of international trade?

• Increased tariffs

• Higher unemployment rates

• Lower production costs through economies of scale

• Reduced competition

Which country is mentioned as having no domestic reserves of oil?

• Brazil

• Germany

• Japan

• China

What is the primary focus of strategic partnerships?

• To compete against each other

• To share resources for mutual gain

• To limit market access

• To increase tariffs