Question 1

Which of the following refers to the situation when a country's imports exceed its exports?

Accepted Answer

A)  Balance of payments 
B)  Balance of trade 
C)  Trade deficit 
D)  Trade surplus 
E)  Trade advantage 
A)  Balance of payments 
B)  Balance of trade 
C)  Trade deficit 
D)  Trade surplus 
E)  Trade advantage C

Question 2

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

Accepted Answer

A) True 
 B)False  True

Question 3

Why should companies conducting international operations be concerned about exchange rate fluctuations?

Accepted Answer

Changes in exchange rates affect overseas demand for their products and can be a major factor in international competition. Exchange rate fluctuations can also affect the companies' profitability. In general, when the value of a country's currency rises-becomes stronger-companies based there find it harder to export products to foreign markets and easier for foreign companies to enter local markets. It also makes it more cost-efficient for domestic companies to move operations to lower-cost foreign sites. When the value of a currency declines-becomes weaker-the opposite occurs.

Question 4

What condition will be created when gaining a national competitive advantage by developing strong local or regional suppliers?

Accepted Answer

A)  Factor conditions 
B)  Strategies and structures 
C)  Demand conditions 
D)  Rivalries 
E)  Related and supporting industries 
A)  Factor conditions 
B)  Strategies and structures 
C)  Demand conditions 
D)  Rivalries 
E)  Related and supporting industries

Question 5

Which of the following organizations is a firm that makes products in one country and then distributes and sells them in others?

Accepted Answer

A)  Importer 
B)  Exporter 
C)  Multinational firm 
D)  International firm 
E)  Direct foreign investor 
A)  Importer 
B)  Exporter 
C)  Multinational firm 
D)  International firm 
E)  Direct foreign investor

Question 6

Which of the following is NOT considered an international organizational structure?

Accepted Answer

A)  Independent agents 
B)  Licensing arrangements 
C)  Foreign direct investments 
D)  Branch office 
E)  Exporters 
A)  Independent agents 
B)  Licensing arrangements 
C)  Foreign direct investments 
D)  Branch office 
E)  Exporters

Question 7

Which of the following allows firms to focus on core activities and reduce cost by moving aspects of the business to areas where costs are low?

Accepted Answer

A)  Outsourcing 
B)  Adapting 
C)  Offshoring 
D)  Exporting 
E)  Importing 
A)  Outsourcing 
B)  Adapting 
C)  Offshoring 
D)  Exporting 
E)  Importing

Question 8

What are products that are created domestically and transported for sale abroad?

Accepted Answer

A)  Dumped goods 
B)  Exports 
C)  Imports 
D)  Buy backs 
E)  Domestic goods 
A)  Dumped goods 
B)  Exports 
C)  Imports 
D)  Buy backs 
E)  Domestic goods

Question 9

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Accepted Answer

A) True 
 B)False

Question 10

In a licensing arrangement, firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.

Accepted Answer

A) True 
 B)False

Question 11

What caused manufacturing jobs to move from Mexico to China in the late 1990s?

Accepted Answer

A)  Increases in Mexico's cost of living and wages 
B)  Modernization of facilities in China 
C)  Improved international travel abilities 
D)  Increased use of technology in China 
E)  Higher levels of education and professional jobs in Mexico 
A)  Increases in Mexico's cost of living and wages 
B)  Modernization of facilities in China 
C)  Improved international travel abilities 
D)  Increased use of technology in China 
E)  Higher levels of education and professional jobs in Mexico

Question 12

What typically happens to a country's balance of trade as the value of its currency falls?

Accepted Answer

A)  It improves. 
B)  It declines. 
C)  It remains the same. 
D)  It fluctuates drastically. 
E)  It fluctuates moderately. 
A)  It improves. 
B)  It declines. 
C)  It remains the same. 
D)  It fluctuates drastically. 
E)  It fluctuates moderately.

Question 13

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Accepted Answer

A) True 
 B)False

Question 14

Which country in the Pacific Asia region has one of the world's largest economies?

Accepted Answer

A)  South Korea 
B)  China 
C)  Indonesia 
D)  Japan 
E)  Taiwan 
A)  South Korea 
B)  China 
C)  Indonesia 
D)  Japan 
E)  Taiwan

Question 15

Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?

Accepted Answer

A)  Tariff 
B)  Embargo 
C)  Subsidy 
D)  Local content law 
E)  Business practice law 
A)  Tariff 
B)  Embargo 
C)  Subsidy 
D)  Local content law 
E)  Business practice law

Question 16

Which of the following statements BEST describes the effects of subsidies?

Accepted Answer

A)  A subsidy essentially lowers the prices of foreign goods rather than raising the prices of domestic goods. 
B)  A subsidy essentially raises the prices of domestic goods rather than lowering the prices of foreign goods. 
C)  A subsidy essentially lowers the prices of domestic goods rather than raising the prices of foreign goods. 
D)  A subsidy essentially raises the prices of foreign goods while also raising the prices of domestic goods. 
E)  A subsidy essentially lowers the prices of foreign goods while also lowering the prices of domestic goods. 
A)  A subsidy essentially lowers the prices of foreign goods rather than raising the prices of domestic goods. 
B)  A subsidy essentially raises the prices of domestic goods rather than lowering the prices of foreign goods. 
C)  A subsidy essentially lowers the prices of domestic goods rather than raising the prices of foreign goods. 
D)  A subsidy essentially raises the prices of foreign goods while also raising the prices of domestic goods. 
E)  A subsidy essentially lowers the prices of foreign goods while also lowering the prices of domestic goods.

Question 17

In assessing a country's national competitive advantage, what is meant by factor conditions?

Accepted Answer

Factor conditions, also known as factors

Question 18

Explain a floating exchange rate.

Accepted Answer

A floating exchange rate allows the valu

Question 19

Currently, a majority of U.S. imports come from Canada, Japan, Mexico, and China.

Accepted Answer

A) True 
 B)False

Question 20

What are products that are created abroad and then transported and sold domestically?

Accepted Answer

A)  Dumped goods 
B)  Exports 
C)  Imports 
D)  Buy backs 
E)  Domestic goods 
A)  Dumped goods 
B)  Exports 
C)  Imports 
D)  Buy backs 
E)  Domestic goods

Which of the following refers to the situation when a country's imports exceed its exports?

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

Why should companies conducting international operations be concerned about exchange rate fluctuations?

What condition will be created when gaining a national competitive advantage by developing strong local or regional suppliers?

Which of the following organizations is a firm that makes products in one country and then distributes and sells them in others?

Which of the following is NOT considered an international organizational structure?

Which of the following allows firms to focus on core activities and reduce cost by moving aspects of the business to areas where costs are low?

What are products that are created domestically and transported for sale abroad?

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

In a licensing arrangement, firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.

What caused manufacturing jobs to move from Mexico to China in the late 1990s?

What typically happens to a country's balance of trade as the value of its currency falls?

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Which country in the Pacific Asia region has one of the world's largest economies?

Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?

Which of the following statements BEST describes the effects of subsidies?

In assessing a country's national competitive advantage, what is meant by factor conditions?

Explain a floating exchange rate.

Currently, a majority of U.S. imports come from Canada, Japan, Mexico, and China.

What are products that are created abroad and then transported and sold domestically?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 4: Understanding the Global Context of Business

Which of the following refers to the situation when a country's imports exceed its exports?

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

Why should companies conducting international operations be concerned about exchange rate fluctuations?

What condition will be created when gaining a national competitive advantage by developing strong local or regional suppliers?

Which of the following organizations is a firm that makes products in one country and then distributes and sells them in others?

Which of the following is NOT considered an international organizational structure?

Which of the following allows firms to focus on core activities and reduce cost by moving aspects of the business to areas where costs are low?

What are products that are created domestically and transported for sale abroad?

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

In a licensing arrangement, firms choose foreign organizations to manufacture their products in another country in return for a fee plus royalties.

What caused manufacturing jobs to move from Mexico to China in the late 1990s?

What typically happens to a country's balance of trade as the value of its currency falls?

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Which country in the Pacific Asia region has one of the world's largest economies?

Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?

Which of the following statements BEST describes the effects of subsidies?

In assessing a country's national competitive advantage, what is meant by factor conditions?

Explain a floating exchange rate.

Currently, a majority of U.S. imports come from Canada, Japan, Mexico, and China.

What are products that are created abroad and then transported and sold domestically?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters