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203. China has approximately 95% of the world's Neodymium, a rare earth metal used in
consumer and military electronics and contemporary technology. The fact that this is a necessary
metal for the production of many products we use today—everything from smartphones to smart
bombs—means China can almost name its price! Which of the following describes this situation?
204. Many of the toy products sold in the United States are imported from Taiwan because the
Taiwanese can produce these products more efficiently than U.S. companies. This is an example
of:
205. Climate and terrain in several South American countries are conducive to growing coffee
efficiently. While other countries can grow coffee, they are not as efficient and effective at coffee
growing because of short seasons and climate concerns. This fact would lead you to believe that
South American countries have a(n) __________ advantage in the production of coffee.
206. The only deposits of a rare and sought-after mineral known as Yuksporite are found in
Russia. Since no other nation has deposits of Yuksporite, Russia has a(n) ___________ in this
mineral.
207. First Engineering, a large U.S.-based mechanical engineering firm, is considering entering
the global market. Upon careful analysis of the global market, they will find that global trade:
208. After finishing college, Nathan joined his uncle's company in Miami, FL, a(n) _______ of
bauxite, copper, and other minerals from the Chile. Every day, he brokers trades with mines in
Chile to buy and transport these minerals into the U.S.
209. Fred Bergsten of the Institute for International Economics estimates that every $1 billion
of U.S. exports:
210. A favorable balance of trade occurs when the value of:
211. An unfavorable balance of trade occurs when the value of:
212. The _____________ is the total value of a nation's exports compared to its imports
measured over a specific period of time.
213. The __________ is the difference between money flowing into a country from exports, and
money leaving the country for imports, plus money flows coming from other factors such as
tourism, foreign aid, military expenditures, and foreign investment.
214. Which of the following is included when calculating a country's balance of payments?
215. Which of the following is considered when calculating a country's balance of payments?
216. Since 1975, the U.S. has had a(n) __________.
217. __________ is the practice of selling a product in foreign countries for a lower price than
the good is sold in the producing country.
218. When AB-InBev sells Budweiser beer made in St. Louis, MO, to Germany, the sales of its
product would be classified as a U.S. __________.
219. Even though the U.S. exports a large ___________ of goods and services, it exports a much
lower __________ of its products than many other countries do.
220. An important principle for firms desiring to export is:
221. As a business strategy, the strategy behind "dumping" is to __________.
222. The value of goods imported into France exceeds the value of French exports. This
indicates that France:
223. Current trade data indicates that the nation of Bogusland exports more to other nations
than it imports. Bogusland has:
224. Japanese automobile producers sold more of their Japanese production overseas than
they sold in Japan. Their business strategy emphasizes:
225. Monique's Unique Tile Boutique offers decorative tile from around the world. The owner
regularly travels overseas to locate the best and most unusual tile that foreign producers have to
offer. Monique participates in ___________.
226. Last year, the nation of Tigerland imported goods totaling $500 million and exported
products totaling $386 million. Tigerland experienced a(n):
227. Last year, the nation of Kwansai reported that it had a favorable balance of trade even
though it imported $11 billion worth of goods. This indicates that Kwansai:
228. Reviewing the recent experience of the United States in global markets reveals that the
U.S. has:
229. The nation of Redland reported that its imports for the previous year were $4 billion
greater than its exports. During the same period, Redland reported a favorable balance of
payments. This information suggests:
230. The president of Auto Parts of America testified before Congress, urging them to limit the
flow of imported automobile parts into the United States. He contended that these imports were
priced lower than foreign producers were charging for them in their own countries. He believes
foreign producers are:
231. Nikkei Bike Parts testified before Congress defending the company against an accusation
that it was dumping parts on the U.S. market. In her testimony, the president claimed
_______________. Using traditional guidelines, Congress determined that Nikkei was not
dumping.
232. Granting a foreign company the right to manufacture your product or to use your firm's
trademark in return for a fee is called:
233. The fee paid to a firm in a licensing agreement that gives another firm the right to
manufacture their product or use its trademark is called:
234. A major advantage of licensing is:
235. A disadvantage of licensing is:
236. The federal government created ___________ to help small and medium-sized businesses
get involved in exporting.
237. _______________ are specialists that match buyers and sellers from different countries
and provide services to ease the process of entering global markets.
238. Export trading companies:
239. __________ 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.
