Question 1

When it comes to ethics,successful American businesspeople are encouraged to follow the policy of "when in Rome,do as the Romans."

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following statements best describes the theory of comparative advantage?

Accepted Answer

A) The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services. 
B) Each nation should produce those goods that it can produce more efficiently and effectively than other nations,and buy the goods it cannot produce efficiently from other nations. 
C) The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships. 
D) A nation should produce those goods for which domestic demand is comparatively strong,and should import those goods for which domestic demand is comparatively weak. 
A) The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services. 
B) Each nation should produce those goods that it can produce more efficiently and effectively than other nations,and buy the goods it cannot produce efficiently from other nations. 
C) The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships. 
D) A nation should produce those goods for which domestic demand is comparatively strong,and should import those goods for which domestic demand is comparatively weak. B

Question 3

The three countries participating in NAFTA are:

Accepted Answer

A) Canada,Panama,and the United States. 
B) Mexico,Panama,and the United States. 
C) Canada,Nicaragua,and Mexico. 
D) Canada,Mexico,and the United States. 
A) Canada,Panama,and the United States. 
B) Mexico,Panama,and the United States. 
C) Canada,Nicaragua,and Mexico. 
D) Canada,Mexico,and the United States. D

Question 4

Labor unions and businesses in the heavy equipment industry have asked the U.S.Congress to place a tax on imported equipment in order to make it more expensive.They hope that this will allow U.S.producers to be more competitive.The U.S.heavy equipment industry appears to be seeking an):

Accepted Answer

A) injunction. 
B) revenue tariff. 
C) nontariff barrier. 
D) protective tariff. 
A) injunction. 
B) revenue tariff. 
C) nontariff barrier. 
D) protective tariff.

Question 5

The Nissan automobile assembly plant in Tennessee is an example of foreign direct investment in the United States.

Accepted Answer

A) True 
 B)False

Question 6

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Accepted Answer

A) True 
 B)False

Question 7

When Anheuser-Busch/In Bev sells Budweiser beer made in St.Louis,MO. ,to Germany,the sales of its product would be classified as a U.S.____________.

Accepted Answer

A) countertrade arrangement 
B) export 
C) import 
D) foreign aid shipment 
A) countertrade arrangement 
B) export 
C) import 
D) foreign aid shipment

Question 8

Importing is the selling of products to another country.

Accepted Answer

A) True 
 B)False

Question 9

McHugh Corporation of Ireland and Enomoto Enterprises based in Japan recently produced a new electric car with rechargeable batteries that can be driven at high speeds for long distances.They have shared the investment,each contributing important technological expertise to the effort.These firms entered into an)____ to build this car.

Accepted Answer

A) Joint venture 
B) Multinational cartel 
C) Industrial countertrade agreement 
D) Multinational limited partnership 
A) Joint venture 
B) Multinational cartel 
C) Industrial countertrade agreement 
D) Multinational limited partnership

Question 10

The main goal of the General Agreement on Tariffs and Trade GATT)was to reduce trade restrictions among world nations.

Accepted Answer

A) True 
 B)False

Question 11

Absolute advantage is the basis for most global trade today.

Accepted Answer

A) True 
 B)False

Question 12

Since patent and copyright laws are the same in all nations,they are not of much impact to firms that compete globally.

Accepted Answer

A) True 
 B)False

Question 13

Jake's family business sells and installs tile in bathrooms and kitchens.He is convinced that heater coils under bathroom floor tiles is the best thing since sliced bread.In his effort to avoid domestic competition,he sets his sights on the vast Chinese market.Much to his surprise,most Chinese people do not yet have indoor plumbing and are accustomed to government-run communal baths.Jake realized that his global marketing effort is hampered by:

Accepted Answer

A) Legal and regulatory constraints. 
B) Cultural constraints. 
C) Physical and environmental constraints. 
D) The floating exchange rate. 
A) Legal and regulatory constraints. 
B) Cultural constraints. 
C) Physical and environmental constraints. 
D) The floating exchange rate.

Question 14

Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:

Accepted Answer

A) expert and experienced laborers. 
B) reduced financial risks. 
C) increased volatility. 
D) currency stability. 
A) expert and experienced laborers. 
B) reduced financial risks. 
C) increased volatility. 
D) currency stability.

Question 15

The __________ is the difference between money flowing into a country from exports,and money leaving the country for imports,plus money flows coming from other factors such as tourism,foreign aid,military expenditures,and foreign investment.

Accepted Answer

A) balance of payments 
B) balance of trade surplus 
C) balance of cash flows 
D) balance of trade 
A) balance of payments 
B) balance of trade surplus 
C) balance of cash flows 
D) balance of trade

Question 16

Competition in exporting is very intense.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following sociocultural forces can have a significant impact on global business operations?

Accepted Answer

A) Religion 
B) Universal sales standards 
C) Single-phase marketing 
D) Global marketing 
A) Religion 
B) Universal sales standards 
C) Single-phase marketing 
D) Global marketing

Question 18

The U.S.government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Accepted Answer

A) True 
 B)False

Question 19

Sociocultural,economic,and legal/regulatory hurdles cause significant challenges in global trade.

Accepted Answer

A) True 
 B)False

Question 20

In any given year,the United States' cash outflow to other nations exceeds its cash inflow from other nations.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

When it comes to ethics,successful American businesspeople are encouraged to follow the policy of "when in Rome,do as the Romans."

Which of the following statements best describes the theory of comparative advantage?

The three countries participating in NAFTA are:

Labor unions and businesses in the heavy equipment industry have asked the U.S.Congress to place a tax on imported equipment in order to make it more expensive.They hope that this will allow U.S.producers to be more competitive.The U.S.heavy equipment industry appears to be seeking an):

The Nissan automobile assembly plant in Tennessee is an example of foreign direct investment in the United States.

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

When Anheuser-Busch/In Bev sells Budweiser beer made in St.Louis,MO. ,to Germany,the sales of its product would be classified as a U.S.____________.

Importing is the selling of products to another country.

The main goal of the General Agreement on Tariffs and Trade GATT)was to reduce trade restrictions among world nations.

Absolute advantage is the basis for most global trade today.

Since patent and copyright laws are the same in all nations,they are not of much impact to firms that compete globally.

Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:

The __________ is the difference between money flowing into a country from exports,and money leaving the country for imports,plus money flows coming from other factors such as tourism,foreign aid,military expenditures,and foreign investment.

Competition in exporting is very intense.

Which of the following sociocultural forces can have a significant impact on global business operations?

The U.S.government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Sociocultural,economic,and legal/regulatory hurdles cause significant challenges in global trade.

In any given year,the United States' cash outflow to other nations exceeds its cash inflow from other nations.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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