BUS 201 - International Business Quiz Questions
With Complete Solutions
International business correct answer: the buying, selling, and
trading of goods and services across national boundaries
Why do nations trade? correct answer: to obtain raw materials
and goods that are otherwise unavailable to them or are available
elsewhere at a lower price than that at which they themselves
can produce
Absolute advantage correct answer: exists when a country is the
only source of producing an item, or the most efficient producer
of an item
Comparative advantage correct answer: exists when a country
specializes in products that it can supply more efficiently or at a
lower cost than it can produce other items
Outsourcing correct answer: transferring manufacturing and
other tasks to countries where labor and supplies are less
expensive
Balance of trade correct answer: the difference in value between
exports and imports
Balance of payments correct answer: the difference between the
flow of money in and out of a country
, International trade barriers - Economic correct answer: -
economic development (industrialized vs. LDCs)
- infrastructure (level of development)
- exchange rates (affect the cost of imports/exports)
International trade barriers - Ethical, legal, political correct
answer: - laws and regulations (adhering to host country laws)
- tariffs/trade restrictions
- political barriers (political instability)
Embargo correct answer: prohibits trade of a particular product
Quota correct answer: limits the number of units of a particular
product that can be imported into a country
Dumping correct answer: occurs when a country or business
sells products at less than what it costs to produce them
International trade barriers - Social and cultural correct answer:
- spoken/written language
- cultural differences
- body language/personal space
- family roles
International trade barriers - Technological correct answer: -
advances (create additional global marketing opportunities)
- challenges (changing technology creates new competition and
challenges)
With Complete Solutions
International business correct answer: the buying, selling, and
trading of goods and services across national boundaries
Why do nations trade? correct answer: to obtain raw materials
and goods that are otherwise unavailable to them or are available
elsewhere at a lower price than that at which they themselves
can produce
Absolute advantage correct answer: exists when a country is the
only source of producing an item, or the most efficient producer
of an item
Comparative advantage correct answer: exists when a country
specializes in products that it can supply more efficiently or at a
lower cost than it can produce other items
Outsourcing correct answer: transferring manufacturing and
other tasks to countries where labor and supplies are less
expensive
Balance of trade correct answer: the difference in value between
exports and imports
Balance of payments correct answer: the difference between the
flow of money in and out of a country
, International trade barriers - Economic correct answer: -
economic development (industrialized vs. LDCs)
- infrastructure (level of development)
- exchange rates (affect the cost of imports/exports)
International trade barriers - Ethical, legal, political correct
answer: - laws and regulations (adhering to host country laws)
- tariffs/trade restrictions
- political barriers (political instability)
Embargo correct answer: prohibits trade of a particular product
Quota correct answer: limits the number of units of a particular
product that can be imported into a country
Dumping correct answer: occurs when a country or business
sells products at less than what it costs to produce them
International trade barriers - Social and cultural correct answer:
- spoken/written language
- cultural differences
- body language/personal space
- family roles
International trade barriers - Technological correct answer: -
advances (create additional global marketing opportunities)
- challenges (changing technology creates new competition and
challenges)
