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Why do firms engage in international trade

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Reference no: EM132840942

1. Why do firms engage in international trade?

2. What is the difference between an absolute and a comparative advantage in international trade? How are both types of advantages related to the concept of specialization?

3. What is a favorable balance of trade? In what way is it "favorable"?

4. List and briefly describe the principal restrictions that may be applied to a nation's imports.

5. What reasons are generally given for imposing trade restrictions?

6. What are the general effects of import restrictions on trade?

7. Define and describe the major objectives of the WTO and the international economic communities.

8. Which nations are the principal trading partners of the United States? What are the major U.S. imports and exports?

9. The methods of engaging in international business may be categorized as either direct or indirect. How would you classify each of the methods described in this chapter? Why?

10. In what ways is a multinational enterprise different from a large corporation that does business in several countries?

Reference no: EM132840942

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