sec 2 Flashcards
Reaching a lower point on its cost curve through international trade would contribute to profits by ___________________ and by __________________________.
increasing sales; reducing cost of domestic sales
The activities of an international business depend on the _______ of its operations in each country.
extent
T OR F: in some instances, a successful advertising slogan in one country is ineffective in another country.
True
An importer may have to “create” a desire for imported goods through ____________.
advertising
The length of the distribution channel of international commerce increases the risk of loss due to _____________, ___________, and ______________.
carelessness, theft, perishability
Warehousing facilities for internationally transported goods tend to be concentrated in major _______ cities.
port
A banker’s acceptance is an accepted bill of ________ drawn on a ____________.
exchange; bank
The dollar purchase price of imported goods is affected by the _______________.
currency exchange ratio
An importer’s bank may issue a -__________ to a foreign exporter.
letter of credit
An importer’s bank may issue a ______________ to a foreign exporter.
letter of credit
If an importer contracts for goods at a price of $1,000,000 rubles when the exchange ratio is $1 = 100 rubles, a change in the exchange ratio to $1 = 125 would ___________ the dollar purchase price.
lower
A business may hold a banker’s acceptance until _______________ or sell it at a _______________.
maturity; discount
Most banker’s acceptances mature in _______ days.
90
T OR F: International tourism is on the decline in the United States.
False
Perhaps the most important export of the Untied States has been knowledge and technological ability.
true
