Competing in Global Markets - Chapter 3 Quiz
10 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main reason for trading with other nations?

  • To increase competition within the country
  • To acquire goods that are not locally available (correct)
  • To reduce global market diversity
  • To promote national self-sufficiency

    • Why is Canada mentioned as a potential market of only 38 million customers?

  • To discourage international trade with Canada
  • To highlight Canada's limited purchasing power
  • To contrast it with the global market potential of 7 billion customers (correct)
  • To emphasize the challenges of operating in a small market

    • What concept refers to the ability of a country to produce goods at a lower opportunity cost than another country?

  • Comparative advantage (correct)
  • National self-sufficiency
  • Absolute advantage
  • Import substitution

    • What is the primary role of multinational corporations in global markets?

    <p>To facilitate the movement of goods, services, and investments across borders</p> Signup and view all the answers

    Why do countries engage in trade even if they are technologically advanced?

    <p>To obtain goods that are not locally available</p> Signup and view all the answers

    What does exporting mean in the context of international trade?

    <p>Selling products to another country</p> Signup and view all the answers

    What is one of the pros of free trade mentioned in the text?

    <p>Improvement in productivity through comparative advantage</p> Signup and view all the answers

    What can be a consequence of intense competitive pressure on domestic companies?

    <p>Loss of comparative advantage</p> Signup and view all the answers

    What is the theory of absolute advantage based on?

    <p>Virtual monopoly in production</p> Signup and view all the answers

    What has been a recent trend in international trade, as mentioned in the text?

    <p>Increase in small business involvement</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser