BUSINESS CHPT 3-6 – Flashcards
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Country A is extremely efficient in the mining of tin. However, its climates makes it difficult to produce corn. Concentrating its production on tin and buy corn from an efficient producer is what theory?
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theory of Comparative advantage
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As a business strategy, the strategy behind "dumping" is to _____
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Gain a foothold in a new market
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Current trade data indicates that the nation of Bogusland exports more to other nations than it imports. Bogusland has:
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A trade surplus
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Firms such as Mcdonalds, pizza hut, and KFC, have entered the global market by offering investors the opporunity to buy:
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Franchises
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Receiving royalties on each product sold is an example of:
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Licensing
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Although embargos are enacted upon both imports and exports, this form of trade protectionism is often the result of :
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Political disagreements between nations
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The two basic types of tariffs are:
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Revenue and protective
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Promote conditions of fair competition for the three trading partners is an objective of what?
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NAFTA
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Companies can create efficiencies by hiring low-wage employees this is an advantage of what?
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Offshore outsourcing
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Sole proprietors are not only the owner of the business, but an employee also.. They must pay what kind of taxes?
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self employment taxes
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What does business in one or more states, but is chartered in another state>?
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foreign corporation
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Ethical behavior is determined by what is best for them at the time.. this is an example of?
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Situational ethics
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What is a condition required for legally binding a contract?
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Mutal acceptance
