Introduction To Business Chapter 3 Quiz

International business refers to all business activities that involve exchange across national boundaries, not limited to activities within the same country, neighboring countries, or at a regional level.

Comparative advantage refers to the ability to produce a specific product more efficiently than any other product, allowing for a competitive edge in the market.

Exporting involves selling and shipping goods to other nations, while importing refers to bringing goods into a country. Manufacturing goods domestically and distributing within a single country are different processes that do not involve international trade.

Importing refers to the act of buying goods or services from foreign sources and bringing them into one's own country. It involves bringing in raw materials or finished products for sale or use within the importing country.

The balance of trade specifically refers to the difference between a nation's exports and imports, not the other factors mentioned in the incorrect answers.

A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade. This can have various economic implications for the country.

The balance of payments is a comprehensive accounting of a country's economic transactions with the rest of the world, including trade, services, and investment. It reflects how much money is flowing into and out of a country, providing insights into its overall economic health.

Dumping occurs when products are exported at a lower price than in the home market, often to gain market share or drive out competition in the importing country.

A nontariff barrier refers to any measure other than a tariff that is imposed by a government to favor domestic suppliers over foreign suppliers. This can include quotas, subsidies, regulations, or other restrictions that make it more difficult or expensive for foreign goods to compete in a domestic market.

An import quota specifically refers to a limit placed on the quantity of goods that can be imported into a country, differentiating it from other trade policies like tariffs, subsidies, or export restrictions.

An embargo is a trade restriction that involves a complete halt to trading with a specific nation or in a particular product. It is used as a political or economic tool to exert pressure or influence on the target country.

Foreign-exchange control refers to restrictions imposed by governments on the amount of a particular foreign currency that individuals or businesses can purchase or sell. It is not a tax, a simple conversion process, or an international agreement on exchange rates.

The World Trade Organization (WTO) is a powerful successor to the General Agreement on Tariffs and Trade (GATT) that expanded its scope to include trade in goods, services, and intellectual property.

An economic community specifically refers to a group of nations working together to enhance economic cooperation and integration.

A letter of credit is a financial tool used in international trade to provide payment security for both the importer and exporter. It is not related to fonts, postal communication, or credit cards.

A bill of lading is a crucial document in shipping and logistics that serves as proof of shipment and receipt of goods.

A draft in terms of international trade refers to a financial instrument used in commercial transactions to ensure payment for goods or services.

A strategic alliance is a form of partnership where two or more companies work together to achieve a common goal, usually to create a competitive advantage in the global market.

A trading company acts as an intermediary, facilitating trade between buyers and sellers in different countries.

A multinational enterprise operates globally with no specific ties to one nation or region, allowing for operations on a worldwide scale. The incorrect options do not fully capture the extent of a multinational enterprise's reach and global operations.

The Export-Import Bank of the United States is a government agency specifically designed to support American firms in financing their exports to other countries.

A multilateral development bank (MDB) is an institution that provides financial assistance and development programs to countries for the purpose of economic development and poverty reduction. MDBs are supported by multiple countries and work to support the growth of developing nations through loans, policy advice, and technical assistance.

The International Monetary Fund (IMF) is specifically designed to address balance-of-payment deficits in developing countries through short-term loans.