Required informationSkip to questionMeasuring Global Trade The activity is important because as a manager, you must be able to understand global trade, and its effect on the local economy. Global trade enables a nation to produce what it is most capable of producing and buy what it needs from others in a mutually beneficial exchange relationship. This happens through the process called free trade. Through free trade, nations are able to import the goods and services they need and export the goods and services other nations need. In measuring global trade, nations rely on two key indicators: balance of trade and balance of payments. The balance of trade is the total value of a nation’s exports compared to its imports measured over a particular period. A favorable balance of trade, or trade surplus, occurs when the value of a country’s exports exceeds that of its imports. An unfavorable balance of trade, or trade deficit, occurs when the value of a country’s exports is less than its imports. The goal of this exercise is to demonstrate your understanding of global trade by answering questions about trade deficit and surplus. Read the case below and answer the questions that follow. For many years, the United States exported more goods and services than it imported. However, since 1975 it has bought more goods from other nations than it has sold and thus has a trade deficit. Recently, it ran its highest trade deficits with China. The chart below indicates the amount of goods and services the United States imports and exports from ten different countries.                              U.S. Trade Balance, by Partner Country, 2018                                          in descending order of importsPartner CountryImports for ConsumptionDomestic Exports—million dollars—  Canada$318,824      $299,768        China$539,675      $120,148        Mexico$346,100      $264,442        Japan$142,425      $75,229        Germany$125,848      $57,753        South Korea$74,264      $56,506        United Kingdom$60,783      $66,312        France$52,431      $36,616        India$54,349      $33,502        Singapore$26,612      $32,747      www.census.gov/foreign-trade/balance/c1220.html Consider the situation in which trade between the United States and China became balanced. Which of the following statements is true based only on the countries included in the chart?Multiple ChoiceNone of the statements are true.All of the statements are true.In general, the United states would experience balance of trade.The United States would have a trade surplus.The United States would have a trade deficit.

The record of a country's transactions in goods, services, and assets with the rest of the world is its balance of trade.Group of answer choicesTrueFalse

Required informationSkip to questionIndia's Comparative Advantage This activity is important because many managers need to consider international trade and its impact on their business. Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or available elsewhere at a lower price than that at which they themselves can produce. A nation, or individuals and organizations from a nation, sells surplus materials and goods to acquire funds to buy goods, services, and ideas that its people need. Which goods and services a nation sells depends on what resources it has available. The goal of this exercise is to demonstrate your understanding of international trade as it relates to one major country, India. Read the case below and answer the questions that follow. Part I: India, with a population of 1.35 billion, is the fastest growing population in the world and the second largest population in the world (China is first). Even though India’s Gross Domestic Product (GDP) ranking puts it outside of the Top 5 worldwide (behind countries like the United States, China, Japan, Germany, and the United Kingdom), the growth rate of India’s GDP averages above 6%, surpassing these other countries. Still, the average salary in India is less than $2000 a year, and India’s average annual income is below more than 50 other countries. In addition, there is stark contrast in India between affluent cities and impoverished areas, with the richest 10 percent of India controlling 80 percent of the nation’s wealth. In contrast, about 60 percent of India’s population lives on about $3 per day, living in villages and unable to afford luxuries like refrigeration and running water. Part II: India's road to success has been and will be extremely different from the organized route that China has taken to expand its economy. China’s all-powerful government is responsible for the country’s growth, while India has a large number of entrepreneurs who are determined and willing to do what it takes to make money. Indian companies are growing at remarkable annual rates of 15 to 25 percent. However, Indian consumers are also contributing to this growth. Personal consumption accounts for about 60 percent of India’s gross domestic product, less than 10 percent behind the United States, which has one of the highest personal consumption rates. Part III: American companies have moved their operations to India to take advantage of inexpensive labor, but India boasts a growing number of its own successful blue-chip companies, such as Infosys and Tata Consultancy. Infosys, for example, designs and maintains software for almost the majority of Fortune 500 companies. India’s manufacturing sector has also become a global force. Once sluggish and inefficient, the manufacturing industry has benefited from recent economic reforms as well as a plentiful supply of engineering talent and inexpensive labor. Above all, what appears to be driving India's growth is an enthusiasm to succeed. This enthusiasm may be attributed to India’s emergence as an independent society ready for change—and what a change! Which of the following best represents a training that would need to occur in order to help someone doing business in India overcome cultural barriers?Multiple Choicea training on gender roles and taboosa debriefing on trade and employment lawa training on financial exchangea training on legal issues surrounding selection and assessmenta training on tariffs for exporting

which of the following is a benefit of international trade

Explain how adequate infrastructure can assist in trading on the global market in middle-income countries.

Which situation best illustrates how global trade promotes specialization?A.A country ensures that it will not become too reliant on trade by producing all of its most essential goods.B.A country tries to create a trade surplus by producing a wide variety of products that other countries want.C.A country sets strict limits on the amount of goods it can export to other countries in a single year.D.A country focuses on developing software instead of growing food because it can import food from its neighbors.