BUSI 3250 FINAL EXAM ACTUAL QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Five major kinds of drivers, all based on change, are leading international firms to
internationalize their operations: - ✔✔1. Political
2. Technological
3. Market
4. Cost
5. Competitive
✔✔Economic Globalization - ✔✔The tendency toward an international integration and
interdependency of goods, technology, information, labor and capital, or the process of
making this integration happen.
✔✔Foreign direct investment (FDI) from the United States to the rest of the world -
✔✔$1.5 trillion from 2013 to 2017.
-liberalized trade policies
-advances in technology
✔✔GATS Mode 1 - ✔✔covers services supplied from one country to another
✔✔GATS Mode 2 - ✔✔covers consumers or firms making use of a service in another
country
✔✔GATS Mode 3 - ✔✔covers a foreign country setting up subsidiaries or branches to
provide services in another country
✔✔GATS Mode 4 - ✔✔covers individuals traveling from their own country to supply
services in another
✔✔Rapid growth in world exports since 1980 presents positive and negative
consequences. - ✔✔-increasing sales through exporting is a viable growth strategy and
creates jobs in exporting nations....and creates skill sets.
-Acts as a warning to managers that they must be prepared to meet increased
competition from exports in their own domestic markets.
✔✔Major Trading Partners: Their Relevance for Managers - ✔✔1. The business climate
in these importing nations is already relatively favorable.
2. Export and import regulations are not insurmountable.
3. There should be no strong cultural objections at home to buying that nation's goods.
4. Satisfactory transportation facilities have already been established.
, ✔✔Major Trading Partners of the United States - ✔✔-The top 10 trading partners
accounted for 66 percent of total U.S. exports and 70 percent of total U.S. imports in
2017.
-Data supports the overall trend that developed nations and members of regional trade
agreements tend to trade with one another.
✔✔3 largest regional trade regions 1) EU - 27 member countries 2) NAFTA 3) ASEAN -
make up _____% of the world's exports - ✔✔55%
✔✔Trade deficit - ✔✔the amount by which the value of imports into a nation exceeds
the value of exports.
✔✔Trade surplus - ✔✔the amount by which the value of a nation's exports exceeds the
value of its imports.
✔✔Mercantilism - ✔✔-Views precious metals like gold and silver as the only source of
wealth.
-To increase wealth, government policies should promote exports and discourage
imports (which would create a trade surplus).
✔✔international trade theories - ✔✔1) Mercantilism
2) Absolute Advantage*
3) Comparative Advantage*
4) Factor proportions
5) Product life Cycle
6) Country similarity
✔✔Theory of Absolute Advantage - ✔✔Exists when a nation can produce more of a
good or service than another country for the same or lower price.
✔✔Theory of Comparative Advantage - ✔✔An economy's ability to produce a particular
good or service at a lower opportunity cost than its trading partners. A lower opportunity
cost means it has to forego less of other goods in order to produce it.
✔✔Differences in resource endowments - ✔✔the land, labor, capital, and related
production factors a nation possesses.
✔✔Overlapping demand - ✔✔the existence of similar preferences and demand for
products and services among nations with similar levels of per capita income.
✔✔International product life cycle (IPLC) - ✔✔heory explaining why a product that
begins as a nation's export eventually becomes its import. The role of innovation in
trade patterns.
4 stages: Export, foreign production, foreign competition, import competition.
ANSWERS GUARANTEE A+
✔✔Five major kinds of drivers, all based on change, are leading international firms to
internationalize their operations: - ✔✔1. Political
2. Technological
3. Market
4. Cost
5. Competitive
✔✔Economic Globalization - ✔✔The tendency toward an international integration and
interdependency of goods, technology, information, labor and capital, or the process of
making this integration happen.
✔✔Foreign direct investment (FDI) from the United States to the rest of the world -
✔✔$1.5 trillion from 2013 to 2017.
-liberalized trade policies
-advances in technology
✔✔GATS Mode 1 - ✔✔covers services supplied from one country to another
✔✔GATS Mode 2 - ✔✔covers consumers or firms making use of a service in another
country
✔✔GATS Mode 3 - ✔✔covers a foreign country setting up subsidiaries or branches to
provide services in another country
✔✔GATS Mode 4 - ✔✔covers individuals traveling from their own country to supply
services in another
✔✔Rapid growth in world exports since 1980 presents positive and negative
consequences. - ✔✔-increasing sales through exporting is a viable growth strategy and
creates jobs in exporting nations....and creates skill sets.
-Acts as a warning to managers that they must be prepared to meet increased
competition from exports in their own domestic markets.
✔✔Major Trading Partners: Their Relevance for Managers - ✔✔1. The business climate
in these importing nations is already relatively favorable.
2. Export and import regulations are not insurmountable.
3. There should be no strong cultural objections at home to buying that nation's goods.
4. Satisfactory transportation facilities have already been established.
, ✔✔Major Trading Partners of the United States - ✔✔-The top 10 trading partners
accounted for 66 percent of total U.S. exports and 70 percent of total U.S. imports in
2017.
-Data supports the overall trend that developed nations and members of regional trade
agreements tend to trade with one another.
✔✔3 largest regional trade regions 1) EU - 27 member countries 2) NAFTA 3) ASEAN -
make up _____% of the world's exports - ✔✔55%
✔✔Trade deficit - ✔✔the amount by which the value of imports into a nation exceeds
the value of exports.
✔✔Trade surplus - ✔✔the amount by which the value of a nation's exports exceeds the
value of its imports.
✔✔Mercantilism - ✔✔-Views precious metals like gold and silver as the only source of
wealth.
-To increase wealth, government policies should promote exports and discourage
imports (which would create a trade surplus).
✔✔international trade theories - ✔✔1) Mercantilism
2) Absolute Advantage*
3) Comparative Advantage*
4) Factor proportions
5) Product life Cycle
6) Country similarity
✔✔Theory of Absolute Advantage - ✔✔Exists when a nation can produce more of a
good or service than another country for the same or lower price.
✔✔Theory of Comparative Advantage - ✔✔An economy's ability to produce a particular
good or service at a lower opportunity cost than its trading partners. A lower opportunity
cost means it has to forego less of other goods in order to produce it.
✔✔Differences in resource endowments - ✔✔the land, labor, capital, and related
production factors a nation possesses.
✔✔Overlapping demand - ✔✔the existence of similar preferences and demand for
products and services among nations with similar levels of per capita income.
✔✔International product life cycle (IPLC) - ✔✔heory explaining why a product that
begins as a nation's export eventually becomes its import. The role of innovation in
trade patterns.
4 stages: Export, foreign production, foreign competition, import competition.
