Question 1

Under which of the following treaties are Canada,the United States,and Mexico gradually eliminating tariffs and all other trade barriers?

Accepted Answer

A)  the EURO Agreement 
B)  the Pan-American Agreement 
C)  the North American Free Trade Agreement 
D)  the General Agreement on Tariffs and Trade 
E)  the G-3 Free Trade Agreement 
A)  the EURO Agreement 
B)  the Pan-American Agreement 
C)  the North American Free Trade Agreement 
D)  the General Agreement on Tariffs and Trade 
E)  the G-3 Free Trade Agreement

Question 2

The vice president of Fembooks argues that they will encounter too many difficulties in taking the business global via the Internet.The president argues that the benefits would be worth the problems encountered.Which of the following statements,if true,would support the argument of the vice president against going global?

Accepted Answer

A)  While English is the dominant language of the Internet, more local traffic would be generated by Web pages in the local language. 
B)  Being a niche business, going global over the Internet would not put a huge strain on existing personnel. 
C)  Shipping books overseas could easily be handled by UPS, FedEx, or airmail. 
D)  Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually. 
E)  Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis. 
A)  While English is the dominant language of the Internet, more local traffic would be generated by Web pages in the local language. 
B)  Being a niche business, going global over the Internet would not put a huge strain on existing personnel. 
C)  Shipping books overseas could easily be handled by UPS, FedEx, or airmail. 
D)  Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually. 
E)  Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Which of the following types of firms design,produce,and manufacture products in many nations?

Accepted Answer

A)  multinational firms 
B)  importing firms 
C)  domestic firms 
D)  international firms 
E)  exporting firms 
A)  multinational firms 
B)  importing firms 
C)  domestic firms 
D)  international firms 
E)  exporting firms

Question 6

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

Accepted Answer

A)  a multinational firm 
B)  an independent agency 
C)  a licensing arrangement 
D)  a foreign direct investment 
E)  a strategic alliance 
A)  a multinational firm 
B)  an independent agency 
C)  a licensing arrangement 
D)  a foreign direct investment 
E)  a strategic alliance

Question 7

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 8

Which of the following statements,if true,would support the president's argument for the global expansion of Fembooks through the Internet?

Accepted Answer

A)  Payment preferences vary from country to country. Europeans prefer using debit cards over using credit cards due to the high rate of credit card theft. 
B)  Demographic targeting is more easily accomplished on the Internet than in other forms of advertising. 
C)  The exchange rate for different currencies can be an issue for global businesses. The use of local currency may increase rates of purchase, but presents challenges for exchange and shipping. 
D)  Advertising and sales laws (and accompanying taxes) vary from country to country. 
E)  Local import and export laws would need to be researched and followed. 
A)  Payment preferences vary from country to country. Europeans prefer using debit cards over using credit cards due to the high rate of credit card theft. 
B)  Demographic targeting is more easily accomplished on the Internet than in other forms of advertising. 
C)  The exchange rate for different currencies can be an issue for global businesses. The use of local currency may increase rates of purchase, but presents challenges for exchange and shipping. 
D)  Advertising and sales laws (and accompanying taxes) vary from country to country. 
E)  Local import and export laws would need to be researched and followed.

Question 9

What are the three goals of the World Trade Organization (WTO)?

Accepted Answer

The three goals are 1)to encourage membe

Question 10

Transportation costs have relatively little impact on a domestic firm's decision to go international,compared to other possible factors.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.government forbids the importation of cigars from Cuba.What is this practice called?

Accepted Answer

A)  embargo 
B)  tariff 
C)  subsidy 
D)  business practice law 
E)  local content law 
A)  embargo 
B)  tariff 
C)  subsidy 
D)  business practice law 
E)  local content law

Question 12

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following goals is a primary purpose of tariffs on imports?

Accepted Answer

A)  maintain domestic competitiveness 
B)  decrease exports 
C)  increase imports 
D)  subsidize domestic industry 
E)  promote free trade 
A)  maintain domestic competitiveness 
B)  decrease exports 
C)  increase imports 
D)  subsidize domestic industry 
E)  promote free trade

Question 14

Revenue tariffs are primarily designed to discourage the importation of foreign products.

Accepted Answer

A) True 
 B)False

Question 15

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling,plastics-based paint.Both companies intend to share the research costs and any profits.What is this an example of?

Accepted Answer

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

Question 16

Which of the following resulted from NAFTA?

Accepted Answer

A)  Companies from other countries, such as Japan, have made fewer business investments in North America. 
B)  U.S. exports to Mexico have decreased. 
C)  U.S. exports to Mexico have increased. 
D)  More jobs have been created than what was originally predicted. 
E)  More U.S. jobs were eliminated than what was originally predicted. 
A)  Companies from other countries, such as Japan, have made fewer business investments in North America. 
B)  U.S. exports to Mexico have decreased. 
C)  U.S. exports to Mexico have increased. 
D)  More jobs have been created than what was originally predicted. 
E)  More U.S. jobs were eliminated than what was originally predicted.

Question 17

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

Accepted Answer

Success in international trade will depe

Question 18

Citronel's Chief Operating Officer thinks that the company should adopt a standardized marketing approach throughout the world.Which of the following,if true,would strengthen her position?

Accepted Answer

A)  Long production runs of the same items would allow the company to save money. 
B)  Different cultures vary in how they perceive French clothing. 
C)  The company has had only limited success establishing a consistent marketing strategy throughout France. 
D)  The company will have strong competition from various brands throughout the world. 
E)  The company has a substantial marketing budget. 
A)  Long production runs of the same items would allow the company to save money. 
B)  Different cultures vary in how they perceive French clothing. 
C)  The company has had only limited success establishing a consistent marketing strategy throughout France. 
D)  The company will have strong competition from various brands throughout the world. 
E)  The company has a substantial marketing budget.

Question 19

The vice president further argues that more reasons exist for not expanding Fembooks on a global basis.Which of the following statements,if true,would NOT support the vice president's argument?

Accepted Answer

A)  Bandwidth variability can cause technical problems with ordering through the Internet. 
B)  Some countries require Internet users to pay by the minute, which further necessitates a rapid ordering and payment procedure. 
C)  Web censoring, which could impact feminist books, occurs in China, Saudi Arabia, Iran, and Malaysia. 
D)  The rate of access to computers is increasing on a global basis and now stands at 34 percent. 
E)  Local Internet Web page writers would need to ensure that all offensive colors, words and images were removed to ensure cultural adaptation. 
A)  Bandwidth variability can cause technical problems with ordering through the Internet. 
B)  Some countries require Internet users to pay by the minute, which further necessitates a rapid ordering and payment procedure. 
C)  Web censoring, which could impact feminist books, occurs in China, Saudi Arabia, Iran, and Malaysia. 
D)  The rate of access to computers is increasing on a global basis and now stands at 34 percent. 
E)  Local Internet Web page writers would need to ensure that all offensive colors, words and images were removed to ensure cultural adaptation.

Question 20

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

Accepted Answer

A)  monopolistic advantage 
B)  national competitive advantage 
C)  resource advantage 
D)  absolute advantage 
E)  comparative advantage 
A)  monopolistic advantage 
B)  national competitive advantage 
C)  resource advantage 
D)  absolute advantage 
E)  comparative advantage

Under which of the following treaties are Canada,the United States,and Mexico gradually eliminating tariffs and all other trade barriers?

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

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

Which of the following types of firms design,produce,and manufacture products in many nations?

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

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

Which of the following statements,if true,would support the president's argument for the global expansion of Fembooks through the Internet?

What are the three goals of the World Trade Organization (WTO)?

Transportation costs have relatively little impact on a domestic firm's decision to go international,compared to other possible factors.

The U.S.government forbids the importation of cigars from Cuba.What is this practice called?

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Which of the following goals is a primary purpose of tariffs on imports?

Revenue tariffs are primarily designed to discourage the importation of foreign products.

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling,plastics-based paint.Both companies intend to share the research costs and any profits.What is this an example of?

Which of the following resulted from NAFTA?

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

Citronel's Chief Operating Officer thinks that the company should adopt a standardized marketing approach throughout the world.Which of the following,if true,would strengthen her position?

The vice president further argues that more reasons exist for not expanding Fembooks on a global basis.Which of the following statements,if true,would NOT support the vice president's argument?

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

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

Under which of the following treaties are Canada,the United States,and Mexico gradually eliminating tariffs and all other trade barriers?

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

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

Which of the following types of firms design,produce,and manufacture products in many nations?

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

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

Which of the following statements,if true,would support the president's argument for the global expansion of Fembooks through the Internet?

What are the three goals of the World Trade Organization (WTO)?

Transportation costs have relatively little impact on a domestic firm's decision to go international,compared to other possible factors.

The U.S.government forbids the importation of cigars from Cuba.What is this practice called?

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Which of the following goals is a primary purpose of tariffs on imports?

Revenue tariffs are primarily designed to discourage the importation of foreign products.

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling,plastics-based paint.Both companies intend to share the research costs and any profits.What is this an example of?

Which of the following resulted from NAFTA?

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

Citronel's Chief Operating Officer thinks that the company should adopt a standardized marketing approach throughout the world.Which of the following,if true,would strengthen her position?

The vice president further argues that more reasons exist for not expanding Fembooks on a global basis.Which of the following statements,if true,would NOT support the vice president's argument?

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

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