Global Trade and Small Business
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Questions and Answers

What is the estimated number of U.S. jobs generated by every $1 billion in U.S. exports?

  • 15,000
  • 10,000
  • 7,000 (correct)
  • 5,000
  • What percentage of total U.S. exports are accounted for by small businesses?

  • 30% (correct)
  • 10%
  • 50%
  • 70%
  • What is the term for a country's exports being more valuable than its imports?

  • Absolute Advantage
  • Trade Surplus (correct)
  • Balance of Trade
  • Trade Deficit
  • What is the term for a country's ability to produce a product more efficiently than all other countries?

    <p>Absolute Advantage</p> Signup and view all the answers

    What is the main goal of President Obama's initiative to support small businesses in exporting?

    <p>To double exports by 2015</p> Signup and view all the answers

    What motivates some students to become importers while studying abroad?

    <p>The inability to find products they're used to in their new country</p> Signup and view all the answers

    Which type of strategy for reaching global markets involves a fee for the use of a trademark or product?

    <p>Licensing</p> Signup and view all the answers

    What is dumping in the context of global trade?

    <p>Selling products below their market value to gain a competitive advantage</p> Signup and view all the answers

    What is a disadvantage of licensing in global trade?

    <p>The bulk of revenues going to the licensee</p> Signup and view all the answers

    What is the main function of Export Assistance Centers (EACs)?

    <p>To provide hands-on exporting assistance and trade-finance support</p> Signup and view all the answers

    What is exporting in the context of global trade?

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

    What is a potential advantage of licensing in global trade?

    <p>Gaining additional revenues from a product that would not have been produced domestically</p> Signup and view all the answers

    What occurs when a country's exports are less valuable than its imports?

    <p>Unfavorable trade balance</p> Signup and view all the answers

    What is the difference between the money coming into a country and the money leaving the country called?

    <p>Balance of payments</p> Signup and view all the answers

    What is the term for selling products in a foreign country at lower prices than in the producing country?

    <p>Dumping</p> Signup and view all the answers

    What is the goal of a country's balance of payments?

    <p>To have more money flowing into the country</p> Signup and view all the answers

    What happens when a country has a favorable balance of payments?

    <p>More money flows into the country</p> Signup and view all the answers

    What is the term for the difference between a country's exports and imports?

    <p>Balance of trade</p> Signup and view all the answers

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