Question 1

If you have given another company in another country the right to produce your company's product, you are engaging in a licensing arrangement.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following helps to create a more visible public presence in foreign countries and customers?

Accepted Answer

A)  Developing a strategic alliance 
B)  Outsourcing 
C)  Licensing products 
D)  Investing directly in a foreign venture 
E)  Opening a local branch office 
A)  Developing a strategic alliance 
B)  Outsourcing 
C)  Licensing products 
D)  Investing directly in a foreign venture 
E)  Opening a local branch office

Question 3

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

Accepted Answer

When the value of a country's currency r

Question 4

China and India require that when foreign firms enter into joint ventures with local firms, the local partners must have the controlling ownership stake. What is this an example of?

Accepted Answer

A)  Local content laws 
B)  Business practice laws 
C)  Fair trade agreements 
D)  Quotas 
E)  Subsidies 
A)  Local content laws 
B)  Business practice laws 
C)  Fair trade agreements 
D)  Quotas 
E)  Subsidies

Question 5

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

Accepted Answer

A)  Quota laws 
B)  Local content laws 
C)  Business practice laws 
D)  Free trade laws 
E)  Subsidy laws 
A)  Quota laws 
B)  Local content laws 
C)  Business practice laws 
D)  Free trade laws 
E)  Subsidy laws

Question 6

Those cultures that place a higher value on social relationship, quality of life, and concern for others instead of money and assertiveness have which type of orientation behavior?

Accepted Answer

A)  Uncertainty avoidance 
B)  Aggressive goal 
C)  Time 
D)  Passive goal 
E)  Power tolerance 
A)  Uncertainty avoidance 
B)  Aggressive goal 
C)  Time 
D)  Passive goal 
E)  Power tolerance

Question 7

The terms outsourcing and offshoring can be used interchangeably, as they have the same meaning.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following provides exclusive rights to produce a product for another firm, thereby avoiding transportation costs and tariffs?

Accepted Answer

A)  Licensing arrangement 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Independent agent 
E)  Branch office 
A)  Licensing arrangement 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Independent agent 
E)  Branch office

Question 9

Local content laws guarantee that products sold in a country are at least partly made there.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following will allow one firm to use another firm's brand name, operating procedures or technology?

Accepted Answer

A)  A foreign direct investment 
B)  A licensing arrangement 
C)  A branch office setup 
D)  A strategic alliance 
E)  An import-export relationship 
A)  A foreign direct investment 
B)  A licensing arrangement 
C)  A branch office setup 
D)  A strategic alliance 
E)  An import-export relationship

Question 11

Which of the following refers to the practice of selling a product abroad for less than the cost of production?

Accepted Answer

A)  Exporting 
B)  Importing 
C)  Dumping 
D)  Safeguarding 
E)  Offshoring 
A)  Exporting 
B)  Importing 
C)  Dumping 
D)  Safeguarding 
E)  Offshoring

Question 12

Which of the following refers to tariffs that are imposed strictly to raise money for the government?

Accepted Answer

A)  Revenue tariffs 
B)  Protectionist tariffs 
C)  Quota tariffs 
D)  Subsidy tariffs 
E)  Labor tariffs 
A)  Revenue tariffs 
B)  Protectionist tariffs 
C)  Quota tariffs 
D)  Subsidy tariffs 
E)  Labor tariffs

Question 13

Which statement is true regarding independent agents?

Accepted Answer

A)  They represent one firm at a time. 
B)  They usually specialize in a particular product. 
C)  They act as sales representatives. 
D)  They are usually based at domestic offices. 
E)  They do not monitor or address customer satisfaction. 
A)  They represent one firm at a time. 
B)  They usually specialize in a particular product. 
C)  They act as sales representatives. 
D)  They are usually based at domestic offices. 
E)  They do not monitor or address customer satisfaction.

Question 14

An import is a product made or grown abroad but sold domestically.

Accepted Answer

A) True 
 B)False

Question 15

A company with high demand for its product in a particular foreign market that is associated with high transportation costs would tend to arrange a strategic alliance over any other international organization structure.

Accepted Answer

A) True 
 B)False

Question 16

How does globalization of business benefit shareholders of an organization?

Accepted Answer

A)  Through easier and faster international travel 
B)  Through the elimination of dieses in developing nations 
C)  Through increased and improved profitability 
D)  Through lower taxes between trade partners 
E)  Through more distinct cultural heritage 
A)  Through easier and faster international travel 
B)  Through the elimination of dieses in developing nations 
C)  Through increased and improved profitability 
D)  Through lower taxes between trade partners 
E)  Through more distinct cultural heritage

Question 17

The value of the U.S. dollar relative to the value of the British pound fluctuates with market conditions. What is this type of exchange rate?

Accepted Answer

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

Question 18

Which of the following represents the controversial practice of supporting domestic businesses at the expense of free market competition?

Accepted Answer

A)  Embargos 
B)  Quotas and tariffs 
C)  Protectionism 
D)  Local content law 
E)  Cartels 
A)  Embargos 
B)  Quotas and tariffs 
C)  Protectionism 
D)  Local content law 
E)  Cartels

Question 19

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

Accepted Answer

A)  United Nations Development Assistant Plan 
B)  North American Free Trade Agreement 
C)  General Agreement on Tariffs and Trade 
D)  General Agreement on Trade in Services 
E)  European Union Stability and Growth Pact 
A)  United Nations Development Assistant Plan 
B)  North American Free Trade Agreement 
C)  General Agreement on Tariffs and Trade 
D)  General Agreement on Trade in Services 
E)  European Union Stability and Growth Pact

Question 20

What is a difference between an international firm and a multinational firm?

Accepted Answer

A)  Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation. 
B)  International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation. 
C)  International and multinational firms are the same thing. 
D)  Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market. 
E)  International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market. 
A)  Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation. 
B)  International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation. 
C)  International and multinational firms are the same thing. 
D)  Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market. 
E)  International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market.

If you have given another company in another country the right to produce your company's product, you are engaging in a licensing arrangement.

Which of the following helps to create a more visible public presence in foreign countries and customers?

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

China and India require that when foreign firms enter into joint ventures with local firms, the local partners must have the controlling ownership stake. What is this an example of?

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

Those cultures that place a higher value on social relationship, quality of life, and concern for others instead of money and assertiveness have which type of orientation behavior?

The terms outsourcing and offshoring can be used interchangeably, as they have the same meaning.

Which of the following provides exclusive rights to produce a product for another firm, thereby avoiding transportation costs and tariffs?

Local content laws guarantee that products sold in a country are at least partly made there.

Which of the following will allow one firm to use another firm's brand name, operating procedures or technology?

Which of the following refers to the practice of selling a product abroad for less than the cost of production?

Which of the following refers to tariffs that are imposed strictly to raise money for the government?

Which statement is true regarding independent agents?

An import is a product made or grown abroad but sold domestically.

A company with high demand for its product in a particular foreign market that is associated with high transportation costs would tend to arrange a strategic alliance over any other international organization structure.

How does globalization of business benefit shareholders of an organization?

The value of the U.S. dollar relative to the value of the British pound fluctuates with market conditions. What is this type of exchange rate?

Which of the following represents the controversial practice of supporting domestic businesses at the expense of free market competition?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

What is a difference between an international firm and a multinational firm?

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

If you have given another company in another country the right to produce your company's product, you are engaging in a licensing arrangement.

Which of the following helps to create a more visible public presence in foreign countries and customers?

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

China and India require that when foreign firms enter into joint ventures with local firms, the local partners must have the controlling ownership stake. What is this an example of?

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

Those cultures that place a higher value on social relationship, quality of life, and concern for others instead of money and assertiveness have which type of orientation behavior?

The terms outsourcing and offshoring can be used interchangeably, as they have the same meaning.

Which of the following provides exclusive rights to produce a product for another firm, thereby avoiding transportation costs and tariffs?

Local content laws guarantee that products sold in a country are at least partly made there.

Which of the following will allow one firm to use another firm's brand name, operating procedures or technology?

Which of the following refers to the practice of selling a product abroad for less than the cost of production?

Which of the following refers to tariffs that are imposed strictly to raise money for the government?

Which statement is true regarding independent agents?

An import is a product made or grown abroad but sold domestically.

A company with high demand for its product in a particular foreign market that is associated with high transportation costs would tend to arrange a strategic alliance over any other international organization structure.

How does globalization of business benefit shareholders of an organization?

The value of the U.S. dollar relative to the value of the British pound fluctuates with market conditions. What is this type of exchange rate?

Which of the following represents the controversial practice of supporting domestic businesses at the expense of free market competition?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

What is a difference between an international firm and a multinational firm?

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