Question 1

U.S.imports of Canadian softwood timber are limited to 14.7 billion board feet per year.What is this practice called?

Accepted Answer

A)  tariff 
B)  embargo 
C)  subsidy 
D)  dumping 
E)  quota 
A)  tariff 
B)  embargo 
C)  subsidy 
D)  dumping 
E)  quota E

Question 2

Which of the following types of tariff is meant to discourage the import of particular products?

Accepted Answer

A)  revenue tariff 
B)  quota tariff 
C)  labor tariff 
D)  subsidy tariff 
E)  protectionist tariff 
A)  revenue tariff 
B)  quota tariff 
C)  labor tariff 
D)  subsidy tariff 
E)  protectionist tariff E

Question 3

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 B

Question 4

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 5

What is a cartel? Use an example to clarify your response.

Accepted Answer

A cartel is an association of producers

Question 6

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue.Which of the following,if true,would strengthen this argument?

Accepted Answer

A)  Contractual relationships with foreign companies usually involve many rounds of negotiations. 
B)  Contractual relationships are less expensive to enter into than direct investment. 
C)  Compared to direct investment, contractual relationships make business less subject to unpredictable changes. 
D)  Compared to other forms of entry into international markets, contractual relationships tend to be risky. 
E)  Foreign companies in contractual relationships may behave unpredictably at future points in time. 
A)  Contractual relationships with foreign companies usually involve many rounds of negotiations. 
B)  Contractual relationships are less expensive to enter into than direct investment. 
C)  Compared to direct investment, contractual relationships make business less subject to unpredictable changes. 
D)  Compared to other forms of entry into international markets, contractual relationships tend to be risky. 
E)  Foreign companies in contractual relationships may behave unpredictably at future points in time.

Question 7

Saudi Arabian oil is an example of an absolute advantage.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Even free market economies often establish some system of quotas and/or tariffs.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

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 13

How might the international market specifically affect the success of a local coffee shop in Cleveland,Ohio?

Accepted Answer

The price and availability of coffee bea

Question 14

What organization was founded in Pacific Asia in 1967 for economic,political,social,and cultural cooperation?

Accepted Answer

A)  SEATO 
B)  ASEAN 
C)  CENTO 
D)  OAS 
E)  WTO 
A)  SEATO 
B)  ASEAN 
C)  CENTO 
D)  OAS 
E)  WTO

Question 15

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

Accepted Answer

Changes in exchange rates affect oversea

Question 16

When the value of one country's currency relative to that of another varies with market conditions,which of the following exists?

Accepted Answer

A)  floating exchange rate 
B)  fixed exchange rate 
C)  indexed exchange rate 
D)  flat exchange rate 
E)  balanced exchange rate 
A)  floating exchange rate 
B)  fixed exchange rate 
C)  indexed exchange rate 
D)  flat exchange rate 
E)  balanced exchange rate

Question 17

If 1 euro = $1.35 on June 4 and $1.40 on June 5,the value of the dollar has risen.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Accepted Answer

A) True 
 B)False

Question 20

A subsidy is a tax designed to help companies who import products.

Accepted Answer

A) True 
 B)False

U.S.imports of Canadian softwood timber are limited to 14.7 billion board feet per year.What is this practice called?

Which of the following types of tariff is meant to discourage the import of particular products?

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

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

What is a cartel? Use an example to clarify your response.

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue.Which of the following,if true,would strengthen this argument?

Saudi Arabian oil is an example of an absolute advantage.

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

Even free market economies often establish some system of quotas and/or tariffs.

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

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

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

How might the international market specifically affect the success of a local coffee shop in Cleveland,Ohio?

What organization was founded in Pacific Asia in 1967 for economic,political,social,and cultural cooperation?

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

When the value of one country's currency relative to that of another varies with market conditions,which of the following exists?

If 1 euro = $1.35 on June 4 and $1.40 on June 5,the value of the dollar has risen.

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

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

A subsidy is a tax designed to help companies who import products.

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 for Producing Goods and Services

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

U.S.imports of Canadian softwood timber are limited to 14.7 billion board feet per year.What is this practice called?

Which of the following types of tariff is meant to discourage the import of particular products?

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

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

What is a cartel? Use an example to clarify your response.

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue.Which of the following,if true,would strengthen this argument?

Saudi Arabian oil is an example of an absolute advantage.

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

Even free market economies often establish some system of quotas and/or tariffs.

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

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

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

How might the international market specifically affect the success of a local coffee shop in Cleveland,Ohio?

What organization was founded in Pacific Asia in 1967 for economic,political,social,and cultural cooperation?

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

When the value of one country's currency relative to that of another varies with market conditions,which of the following exists?

If 1 euro = $1.35 on June 4 and $1.40 on June 5,the value of the dollar has risen.

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

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

A subsidy is a tax designed to help companies who import products.

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 for Producing Goods and Services

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