Chapter 4 Review Questions How does a business decide whether to trade with a foreign country? What are the key factors for participating in the information economy on a global basis? Why have developing countries such as china and India becoming important international markets? What is difference between absolute advantage and comparative advantage? Give an example of each

Chapter 4 Review Questions

1. How does a business decide whether to trade with a foreign country? What are the key factors for participating in the information economy on a global basis?
2. Why have developing countries such as china and India becoming important international markets?
3. What is difference between absolute advantage and comparative advantage? Give an example of each.
4. Can a nation have a favorable balance of trade and an unfavorable balance of payments? Why or why not?
5. Identify several potential barriers to communication when a company attempts to conduct business in another country. How might these be overcome?
6. Identify and describe briefly the three dimensions of the legal environment for global business?
7.  What are the major nontariff restrictions affecting international business? Describe the difference between tariff and nontariff restrictions?
8. What is NAFTA? How does it work?
9. How has the EU helped trade in European businesses?
10. What are the key choices a company must make before reaching the final decision to go global?