Question 1

Define licensing arrangement and strategic alliance and discuss their relative merits.

Accepted Answer

With a licensing arrangement, a firm giv

Question 2

What type of societies tend to prefer reward systems that link pay with performance of individual employees?

Accepted Answer

A)  Collectivist 
B)  Power respect 
C)  Power tolerance 
D)  Uncertainty avoidance 
E)  Individualistic 
A)  Collectivist 
B)  Power respect 
C)  Power tolerance 
D)  Uncertainty avoidance 
E)  Individualistic

Question 3

Which of the following is the name for the overall flow of money into or out of a country?

Accepted Answer

A)  Exchange rate 
B)  Trade rate 
C)  Balance of exchange 
D)  Balance of payments 
E)  Balance of trade 
A)  Exchange rate 
B)  Trade rate 
C)  Balance of exchange 
D)  Balance of payments 
E)  Balance of trade

Question 4

Discuss the differences between absolute advantage and comparative advantage.

Accepted Answer

An absolute advantage exists when a coun

Question 5

What are three basic levels of involvement available for a firm that decides to conduct business internationally?

Accepted Answer

The firm may act as an exporter or impor

Question 6

In some South American countries, it is sometimes legal to bribe other businesses and government officials, while this practice is illegal in the United States. Which of the following refers to this type of policy?

Accepted Answer

A)  Protectionism 
B)  Business practice laws 
C)  Free trade agreements 
D)  Fair trade agreements 
E)  Local content laws 
A)  Protectionism 
B)  Business practice laws 
C)  Free trade agreements 
D)  Fair trade agreements 
E)  Local content laws

Question 7

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Accepted Answer

Dumping is the practice of selling a pro

Question 8

Where is the world's largest free marketplace?

Accepted Answer

A)  North America 
B)  South America 
C)  Southeast Asia 
D)  Europe 
E)  Middle East 
A)  North America 
B)  South America 
C)  Southeast Asia 
D)  Europe 
E)  Middle East

Question 9

Which country is the world's largest marketplace and most stable economy?

Accepted Answer

A)  The United States 
B)  Canada 
C)  Germany 
D)  Japan 
E)  China 
A)  The United States 
B)  Canada 
C)  Germany 
D)  Japan 
E)  China

Question 10

National competitive advantage derives from four conditions, one of which is factor conditions. What do factor conditions include?

Accepted Answer

A)  Customers, suppliers, and labor 
B)  Government quotas and subsidies 
C)  Product quality, productivity, and profits 
D)  Labor, capital, entrepreneurs, and physical resources 
E)  Strategies, structures, and rivalries 
A)  Customers, suppliers, and labor 
B)  Government quotas and subsidies 
C)  Product quality, productivity, and profits 
D)  Labor, capital, entrepreneurs, and physical resources 
E)  Strategies, structures, and rivalries

Question 11

Cultural values and beliefs are often unspoken.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following buys products in foreign markets and then sells them for resale in its home country?

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 13

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Accepted Answer

A)  Floating 
B)  Indexed 
C)  Fixed 
D)  Adjusted 
E)  Deflated 
A)  Floating 
B)  Indexed 
C)  Fixed 
D)  Adjusted 
E)  Deflated

Question 14

Which organization was developed to promote economic and cultural cooperation among Asian countries?

Accepted Answer

A)  ASEAN 
B)  UAS 
C)  EU 
D)  NAFTA 
E)  ECOWAS 
A)  ASEAN 
B)  UAS 
C)  EU 
D)  NAFTA 
E)  ECOWAS

Question 15

NAFTA regulates trade between the United States, Europe, and Japan.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following BEST describes a positive trade balance?

Accepted Answer

A)  The economic condition in which a country's exports exceed its imports 
B)  The economic condition in which a country's imports exceed its exports 
C)  The economic condition in which a country's inflow of money exceeds its outflow 
D)  The economic condition in which a country's outflow of money exceeds its inflow 
E)  The economic condition in which a country's natural resources exceed its human resources 
A)  The economic condition in which a country's exports exceed its imports 
B)  The economic condition in which a country's imports exceed its exports 
C)  The economic condition in which a country's inflow of money exceeds its outflow 
D)  The economic condition in which a country's outflow of money exceeds its inflow 
E)  The economic condition in which a country's natural resources exceed its human resources

Question 17

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

Accepted Answer

A)  Fair trade 
B)  Balanced trade 
C)  Free trade 
D)  Market liberalism 
E)  Protectionism 
A)  Fair trade 
B)  Balanced trade 
C)  Free trade 
D)  Market liberalism 
E)  Protectionism

Question 18

What is the shared system of symbols, beliefs, and values of a country known as?

Accepted Answer

A)  Organizational structure 
B)  Culture 
C)  Rules 
D)  Norms 
E)  Leadership 
A)  Organizational structure 
B)  Culture 
C)  Rules 
D)  Norms 
E)  Leadership

Question 19

Why did the European Union develop the euro as its common currency?

Accepted Answer

A)  To better compete with the U.S. dollar 
B)  To improve the integration of the economic system between member countries 
C)  To be able to outsource work to countries where wages are lower 
D)  To integrate a quality standard of production between member countries 
E)  To speed the issue of payment between member and nonmember countries 
A)  To better compete with the U.S. dollar 
B)  To improve the integration of the economic system between member countries 
C)  To be able to outsource work to countries where wages are lower 
D)  To integrate a quality standard of production between member countries 
E)  To speed the issue of payment between member and nonmember countries

Question 20

What are the four components of national competitive advantage?

Accepted Answer

The four components of national competit

Define licensing arrangement and strategic alliance and discuss their relative merits.

What type of societies tend to prefer reward systems that link pay with performance of individual employees?

Which of the following is the name for the overall flow of money into or out of a country?

Discuss the differences between absolute advantage and comparative advantage.

What are three basic levels of involvement available for a firm that decides to conduct business internationally?

In some South American countries, it is sometimes legal to bribe other businesses and government officials, while this practice is illegal in the United States. Which of the following refers to this type of policy?

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Where is the world's largest free marketplace?

Which country is the world's largest marketplace and most stable economy?

National competitive advantage derives from four conditions, one of which is factor conditions. What do factor conditions include?

Cultural values and beliefs are often unspoken.

Which of the following buys products in foreign markets and then sells them for resale in its home country?

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Which organization was developed to promote economic and cultural cooperation among Asian countries?

NAFTA regulates trade between the United States, Europe, and Japan.

Which of the following BEST describes a positive trade balance?

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

What is the shared system of symbols, beliefs, and values of a country known as?

Why did the European Union develop the euro as its common currency?

What are the four components of national competitive advantage?

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

Define licensing arrangement and strategic alliance and discuss their relative merits.

What type of societies tend to prefer reward systems that link pay with performance of individual employees?

Which of the following is the name for the overall flow of money into or out of a country?

Discuss the differences between absolute advantage and comparative advantage.

What are three basic levels of involvement available for a firm that decides to conduct business internationally?

In some South American countries, it is sometimes legal to bribe other businesses and government officials, while this practice is illegal in the United States. Which of the following refers to this type of policy?

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Where is the world's largest free marketplace?

Which country is the world's largest marketplace and most stable economy?

National competitive advantage derives from four conditions, one of which is factor conditions. What do factor conditions include?

Cultural values and beliefs are often unspoken.

Which of the following buys products in foreign markets and then sells them for resale in its home country?

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Which organization was developed to promote economic and cultural cooperation among Asian countries?

NAFTA regulates trade between the United States, Europe, and Japan.

Which of the following BEST describes a positive trade balance?

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

What is the shared system of symbols, beliefs, and values of a country known as?

Why did the European Union develop the euro as its common currency?

What are the four components of national competitive advantage?

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