A disadvantage of licensing is
the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product
The___is the difference between money flowing into a country from exports, and money leaving the country for imports, plus money flows coming form other factors such as tourism, foreign aid, military expenditures, and foreign investment
balance of payments
which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people
culture
______is buying products from another country
importing
____occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries
absolute advantage
_____is lowering the value of a nation's currency relative to other currencies
devaluation
a specialized organization that assists businesses in creating relationships with foreign customers and suppliers is known as an
export trading company
global trade with China is
an emerging business opportunity for several companies
the legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the:
Foreign Corrupt Practices Act
trade protectionism
is the use of government regulations to limit the import of goods and services
a ___tariff is designed to raise the price of imported products so that domestic goods are more competitively priced
protective
a favorable balance of trade occurs when he value of:
the value of imports is less than the value of exports
a___represents a long-term partnership between two or more companies established to help each firm build competitive market advantages, without sharing the cost of risk
strategic alliance
global financial markets operate under a system of ____where the supply and demand for various currencies dictate their value at any moment in time
floating exchange rates
___tariffs are designed to raise money for the government
revenue
___is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner
franchising
another name for a common market is
trading bloc
____describes an attitude held by some American business people that American culture is superior to all others
ethnocentricity
granting a foreign company the right to manufacture your product or to use your firms trademark in return for a fee is called
licensing
sociological challenge that must be overcome in order to be successful in the global market is
a lack of cultural understanding
the ___is the total value of a nations exports compared to its imports measured over a specific period of time
balance of trade
The purpose of the General Agreement of Tariffs and Trade is to
facilitate global trade
the theory of ___ states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods from other nations that they produce more efficiently
comparative advantage
the federal government created ___ to help small and medium sized bushiness get involved in exporting
export assistance centers
___ is the selling of products to another country
exporting
the concept of free trade means
goods and services can be traded freely across borders without political and/or economic barriers
the theory pf comparative advantage exists because
no nation can produce all the product its people want and need
___is a complex form of bartering in which several countries may be involved, each trading products and services, for the products and services of another country
countermanding
a risk unique to firms with direct investment in a foreign country is the potential takeover of the firms assets by the government of that country
expropriation