One of the Main Reasons Why Foreign Firms Are Interested

question 33

True/False

One of the main reasons why foreign firms are interested in buying U.S.companies is to gain entrance to the U.S.market.A decline in the value of the dollar relative to most foreign currencies makes this competitive strategy especially attractive.

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Definitions:

Free World Trade

The international exchange of goods and services without restrictive tariffs, quotas, or other trade barriers.

Tariffs and Quotas

Tools used by governments in international trade policy; tariffs are taxes on imported goods, while quotas are limits on the quantity of goods that can be imported.

Agricultural Imports

Goods related to agriculture brought into a country from abroad.

Food, Conservation, and Energy Act

A comprehensive piece of legislation passed by the United States Congress to address issues related to agriculture, nutrition, conservation, and energy.