Question: _____________ is buying products from another country.

Answer: Importing

Question: In volume of exports, the three leading nations are:

Answer: U.S., Germany, and China.

Question: 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

Answer: Comparative advantage.

Question: A favorable balance of trade occurs when the value of

Answer: the value of imports is less than the value of exports

Question: 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.

Answer: balance of payments

Question: __________ is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country.

Answer: dumping

Question: An important principle for firms desiring to export is:

Answer: find a need in the global market and fill it

Question: __________ 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.

Answer: franchising

Question: When a company’s strategy is __________ the firm makes arrangements for a foreign manufacturer to produce the product. The domestic company’s label and/or trademark area attached to the completed product.

Answer: contract manufacturing

Question: The most likely type of utility that’s provided by convenience stores is:

Answer: place