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1. Today, over 90% of the companies doing business globally believe it is important for their
employees to have experience working in other countries.
2. Importing is the selling of products to another country.
3. Exporting is the selling of products to another country.
4. The United States imports more products and services than any nation in the world.
5. The United States is the largest exporter in the world.
6. Competition in exporting is very intense.
7. One reason countries trade with other countries is that even technologically advanced
nations cannot produce all the products their people want and need.
8. Free trade is the movement of goods and services between nations without political or
economic barriers.
9. Global trade is the exchange of goods and services between countries.
10. Global trade includes the exchange of art, sports, and cultural events.
11. Absolute advantage is the basis for most global trade today.
12. Comparative advantage theory states that a country should sell to other countries those
products that it produces most efficiently and buy from other countries those products it cannot
produce as efficiently.
13. A country has an absolute advantage if the production of a specific product is more
efficient than all other nations.
14. Today, there are more countries that have some form of absolute advantage in a product
or service, than years ago.
15. Free trade results in a mutually beneficial exchange between and among nations.
16. With respect to free trade, many U.S. citizens prefer "fair trade, not free trade."
17. Opportunities for college graduates in international business continue to decrease as it
gets more expensive to travel abroad.
18. An example of a U.S. import would be the purchase of oil by U.S. companies from Saudi
Arabia.
19. According to the theory of comparative advantage, a country should buy from other
countries those goods it produces most efficiently.
20. In order to enjoy the highest standard of living possible, comparative advantage theory
states that all nations should strive to become self-sufficient.
21. Products made in Canada are sold in the U.S. because these two nations agree to
eliminate economic and political barriers between nations. They participate in free trade.
22. After finishing college, Nathan joined his uncle's company in Miami, FL, a company that
buys bauxite, copper, and other minerals from the country of Chile, and brings them into the U.S.
Everyday, he brokers trades with mines in Chile. His uncle's company is in the export business.
23. In southern California, there are banana plantations. These plantations cannot produce
all the bananas consumed by persons in the U.S. The fact that the U.S. grows and sells bananas
gives it a comparative advantage in bananas. It is not an absolute advantage and that is why we
choose to import bananas from other countries, as well.
24. Small businesses are less involved in global trade today than in the past.
25. Many foreign students in U.S. colleges and universities have discovered profitable
opportunities by importing goods from their home countries into the United States.
26. International trade is not limited to multinational corporations. Small businesses do about
30% of all exporting out of the U.S.
27. Just about anything that can be sold in the United States can also be sold to buyers in
other countries.
28. Foreign travel can help in identifying global business opportunities.
29. If your business has an outstanding product, exporting offers a quick, easy, no-hassle way
to improve your profitability.
30. U.S. exports boost the U.S. economy.
31. A favorable balance of trade occurs when the value of a country's imports exceeds the
value of its exports.
32. A favorable balance of trade occurs when the value of a country's exports exceeds the
value of its exports.
33. The balance of payments measures the inflows and outflows of money from tourism,
foreign aid, military expenditures and foreign investments as well as flows resulting from exports
and imports.
34. A trade deficit is the same as a favorable balance of trade.
35. The United States enjoys a trade surplus in the global market.
37. Even though the U.S. exports a vast amount of goods globally, it exports a much lower
percentage of its products than other countries do.
38. Dumping is the practice of selling products in foreign markets at lower prices than what
domestic firms are charging for the same product.
39. In order to prevent dumping, U.S. law stipulates that foreign firms selling similar products
as domestic firms to U.S. customers must charge at least 10% more than what U.S. firms charge.
40. When trading in global markets, most countries prefer to import more than they export.
41. Compared to many other industrialized countries, the United States has historically
exported a lower percentage of its products than other countries do.
42. Compared to many other industrialized countries, the United States has historically
exported a much higher percentage of its products than other countries do.
43. The United States currently enjoys a favorable balance of trade with the rest of the world.
44. A favorable balance of trade occurs when the value of a nation's exports exceeds its
imports.
45. In any given year, the United States' cash outflow to other nations exceeds its cash inflow
from other nations.
46. Some firms will practice "dumping" in order to gain a foothold in a new market.
47. As the most powerful economy in the world, the United States does not need to concern
itself with having an unfavorable balance of payments.
48. The country of Hasastan exports $250 of goods and services and imports $170 of goods
and services. Hasastan has an unfavorable balance of trade of $80.
49. If visitors from Germany spend money at Florida's Walt Disney World, it will increase the
U.S.'s unfavorable balance of payments.
50. A Chinese steel manufacturer is selling certain types of steel in the United States at a
price significantly lower than it sells the same steel in its home market. This practice may be a
violation of U.S. law.
51. Japanese auto manufacturers, such as Toyota and Nissan, have invested billions of
dollars in the United States by building new factories, warehouses, and offices. These
investments increase
favorably
the balance of payments for the United States.
52. When the U.S. provides foreign aid to Israel and Egypt, a balance of payments outflow
occurs.
53. The value of Chinese exports coming to the United States is greater than the value of
goods China buys from the U.S. This results in a U.S. trade deficit with China.
54. The country of New Florentina mines more fluorite each year than it needs for its own
manufacturing purposes. Recently, a neighboring country complained that its manufacturing sites
could buy fluorite from New Florentina cheaper than they could buy it from its own mines. A
government trading expert's claim that New Florentina is dumping fluorite onto its neighbor's
market is probably accurate.
55. When competing in global markets, business organizations utilize a variety of strategies to
reach foreign buyers.
