comm 101 - chapter 3

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What are the top exports of Saskatchewan?

Wheat
Oil
Potash
All of the above (correct)

What are Saskatchewan's top export markets? (Select all that apply)

United States (correct)
China (correct)
Germany
India

Absolute advantage in business is defined as:

The ability to control the market price of a product.
The ability to produce a good at a lower opportunity cost than another producer.
The ability to obtain more resources through innovation.
the ability to produce a specific product more efficiently than any other nation (correct)

Comparative advantage in business is defined as:

the ability to produce a specific product more efficiently than any other product (C) Signup and view all the answers

Exports is defined as which of the following?

Goods and services made in one country and sold to others (A) Signup and view all the answers

What is defined as goods and services that are bought from other countries?

Imports (@) Signup and view all the answers

What is the balance of trade defined as?

The difference between the value of a country's exports and imports during a certain period of time (A) Signup and view all the answers

What is a trade surplus defined as?

When a country's exports exceed its imports (A) Signup and view all the answers

What is the definition of a trade deficit?

When a country's imports exceed its exports (B) Signup and view all the answers

What is a balance of payments in international trade?

the difference between money coming into the country and money leaving the country (B) Signup and view all the answers

What is a currency exchange rate?

The value of one currency in relation to another (A) Signup and view all the answers

What benefits do exporting and importing provide to companies?

Lower control and lower risk (B) Signup and view all the answers

Licensing in business is defined as?

when one company permits another to produce and market its product and use its brand name in return for compensation (D) Signup and view all the answers

What is franchising?

An agreement that includes provisions for how the business is to be operated (A) Signup and view all the answers

Subcontracting is when there is:

An agreement that specifies the duties of the partnering company (A) Signup and view all the answers

What do contractual agreements (licensing, franchising, and subcontracting) offer companies?

More control, more risk (A) Signup and view all the answers

International direct investment in business is when a company:

invests in foreign companies /manufacturing to gain a controlling interest (A) Signup and view all the answers

What is a strategic alliance in business?

A partnership formed to create competitive global advantage on a worldwide basis (A) Signup and view all the answers

A joint venture is when:

2 or more businesses combine for a specific project or business venture (C) Signup and view all the answers

Acquisition in business means:

The purchase of one company by another (B) Signup and view all the answers

What is a tariff?

A tax imposed on imported goods (A) Signup and view all the answers

What is the primary purpose of protective tariffs?

To increase the cost of imports and protect domestic industries (B) Signup and view all the answers

What is an import quota?

A limit on the quantity of a specific good that can be imported (A) Signup and view all the answers

What is an embargo?

A complete ban on imports or exports of a product (B) Signup and view all the answers

What are revenue tariffs primarily designed to do?

Generate revenue for the government (B) Signup and view all the answers

Capital of France (example flashcard)

Paris