Title: Reasons for Global Trade
Course: Demo 1

Q: A company acquires goods or products from another country and sells them in domestic markets. This is an example of:
- exporting
- transferring
- importing
A: importing

Q: Exports are an important source of what for many countries?
- marketing ventures
- corporate connections
- revenue
A: revenue

Q: In the video “Chinese Manufacturing for American Products,” what benefits does Mike Tomberlin cite for manufacturing cars in China?
- access to existing manufacturing infrastructure
- an ability to focus on the brand and channel/work flow
- lower wages for the workers
A: access to existing manufacturing infrastructure; an ability to focus on the brand and channel/work flow

Q: In the video “Chinese Manufacturing for American Products,” Mike Tomberlin manufactures its cars in China. What do his partners cite as important factors to manage due to this decision?
- the channel or workflow of the delivery process
- market perceptions of being one of the few auto manufacturers in China
- ensuring workers have technical skills to produce a quality product
A: ensuring workers have technical skills to produce a quality product

Q: A company produces goods or products locally and sells them in foreign markets. This is called:
- importing
- transferring
- exporting
A: exporting

Q: In international business, the balance of trade is the:
- value of the goods a country exports and the value of its margins.
- value of the goods a country imports and the value of its holdings.
- difference between the value of the goods a country exports and the value of the goods it imports.
A: difference between the value of the goods a country exports and the value of the goods it imports.

Q: In 2015, the fictional country Globopolus had $2.5 billion in imports and $2.7 billion in exports. Its balance of trade is:
- $200 million deficit
- $5.2 billion surplus
- $200 million surplus
A: $200 million surplus

Q: In 2015, the fictional country Sunshine Island had $1.8 billion in imports and $1.2 billion in exports. Its balance of trade is:
- $600 million surplus
- $3 billion surplus
- $600 million deficit
A: $600 million deficit

Q: Which of the following are included in the calculation of the balance of payments?
- foreign investment
- foreign aid
- goods exchanged
A: foreign investment; foreign aid