Understanding the Global Context of...
True or False

1 .       The North American Free Trade Agreement (NAFTA) removes tariffs and other trade barriers among the United States, Canada, Mexico, and Central America. 


2 .       The World Bank uses household income as a measure to divide countries into one of three income groups. 


3 .       The world's second largest exporter of computer software is Ireland. 


4 .       China, the most densely populated country in the world, is now the world's third largest economy, behind the United States and only slightly behind Japan. 


5 .       Absolute advantage is a theory that has become widely accepted as a model of why nations engage in international trade. 


6 .       A nation's balance of trade refers to the flow of money into or out of a country. 


7 .       The euro is the common currency among all of the members of the European Union (EU). 


8 .       A trade deficit occurs when exports exceed imports. 


9 .       Products that are successful in one country may be useless in another. 


10 .       An importer makes products in one country to distribute and sell in others. 


11 .       Branch offices allow a firm to have more direct control over its foreign operations than it does over agents or license holders. 


12 .       Success in foreign markets is more dependent on economic differences than it is on social and cultural and legal and political differences. 


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