Name _Lauren Sutherland_Chapter 31. What is comparative advantage, and what are some examples of this concept at work in global markets?Comparative advantage states that a country should sell to other countries those products it produces most effectively and efficiently, and by from other countries those products can’t produce as effectively and efficiently. Some examples of this concept at work in global markets is the U.S. producing goods and services, but buying clothing from other countries/nations.2. How are a nation’s balance of trade and balance of payments determined?The nations balance of trade is the difference in the total value of a nations exports compared to its imports. The balance of payments is the difference between money coming into a country and money leaving the country. 3. What are the advantages to a firm of using licensing as a method of entry in global markets? What are the disadvantages?The advantages to a firm of using licensing as a method of entry in global markets is gaining revenues it wouldn’t have otherwise generated and spending little to no money to produce or market their products. While some disadvantages are the foreignlicensees could learn the company’s technology and product secrets. 4. What are four major hurdles to successful global trade?The four major hurdles to successful global trade is sociocultural forces, economic and financial forces, legal and regulatory forces, and physical and environmental forces. 5. How would a low value to the dollar affect U.S. exports?How a low value to the dollar affect the U.S. exports is that it would make the dollar exports cheaper in foreign markets and could make higher demands for U.S products.6. What does the Foreign Corrupt Practices Act prohibit?The foreign corrupt practices act prohibits questionable payments to foreign officials to secure business contracts.7. What are the advantages and disadvantages of trade protectionism and of tariffs?Some of the disadvantages of the trade protectionism and of tariffs is it increases the price of imports. While some advantages are it increase exports and benefits the economy. 8. What is the primary purpose of WTO?The primary purpose of WTO is to mediate trade disputes/problems among nations.9. What are the major threats to doing business in global markets?Some major threats in the global markets is terrorism and nuclear missiles. 10. What key challenges must India and Russia face before becoming global economic leaders?India must relax its trade laws and inflexible bureaucracy. Russia is plagued by political, currency, corruption, and social
View Full Document
Unlocking...