Aggressive reasons for international business firms to go abroad include all of the following except:

A) open up new markets

B) protect foreign markets

C) acquire products for the home market

D) obtain greater profits

E) satisfy management's desire for expansion

40) The foreign production operations of the firm may not be carried out by

A) exporting

B) Licensing

C) Joint Ventures

D) Contract Manufacturing

_____ 41) Trade restrictions are used to

A) raise prices in foreign markets

B) raise prices in the domestic market

C) lower prices in the domestic market

D) All of the above

_____ 42) In addition to setting the total amount to be traded, quotas are sometimes also allocated on the basis of

A) price

B) country

C) quantity

D) currency of payment

_____ 43) A firm that buys merchandise from manufacturers for international distribution is

A) foreign freight forwarder B) a consortium bank

C) an export management company D) a maquiladora

_____ 44) The International Monetary Fund

A) is concerned with providing financing infrastructure development in developing countries

B) focuses on problems of Second World rather than Third World countries

C) provides support for countries suffering severe balance of payment problems

D) all of the above

_____ 45) The World Bank

A) is concerned with providing financing for infrastructure development in developing countries.

B) focuses on problems of Second World rather than Third World countries.

C) provides support for countries suffering severe balance of payment problems.

D) all of the above

_____ 46) A balance of trade surplus occurs when

A) imports exceed exports

B) imports are paid for by foreign aid

C) exports exceed imports

D) exports and imports are equal, but unrequited transfers are positive