15 Questions
What is the primary focus of the Balance of Trade in measuring international trade?
The relationship between export and import
What is the term for the ability of a nation to produce a good more efficiently than others?
Absolute advantage
What is the primary reason for a nation to engage in international trade, according to the concept of reduced risks?
To increase its client base
What is the term for the cost that a nation has to give up when choosing to produce one product over another?
Opportunity cost
What is the primary consequence of a nation losing its competitive advantage, according to the concept of globalization?
Loss of industries
What is the underlying concept behind Italy's decision to focus on wine production?
Opportunity Cost
According to Porter's Diamond, what leads to increased production and technological innovations?
Competition
What is the term for buying part ownership of a business in a foreign country?
Foreign Direct Investment (FDI)
What is the term for finding resources in another country to provide goods or services?
Global Sourcing
What is the term for a contract between a franchisee and franchiser?
Franchising
What is the term for selling the license of a product to a foreign market?
Licensing
What is the term for restrictions on the amount of a product that can be imported?
Quota
What is the term for a complete ban on trade with a country?
Embargo
What is the term for the World Trade Organization's predecessor?
GATT
What is the term for the most open-to-culture approach in the EPG model?
Geocentric
Test your understanding of globalization, competitive advantages, opportunity costs, and international trade. Learn how to measure trade balances and the reasons behind international trade.
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