Question 1

All countries have a comparative advantage in some products.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

Accepted Answer

A) Independent agency 
B) Opening branch offices 
C) Providing licensing arrangements 
D) Forming strategic alliances 
E) Foreign direct investment 
A) Independent agency 
B) Opening branch offices 
C) Providing licensing arrangements 
D) Forming strategic alliances 
E) Foreign direct investment

Question 3

Lite Foods is a producer of breakfast cereals such as oatmeal and cornflakes,and its products can be found in nearly all supermarkets across Canada.Lite Foods now has its sights set on international shores,specifically the large Chinese consumer market.Company executives are currently debating the best way for the firm to enter the market. Which of the following,if true,would strengthen the argument for venturing into the Chinese market?

Accepted Answer

A) The affluent Chinese middle class is large and is quick to adopt western lifestyles and product preferences. 
B) Growth in the United States cereal market continues to be strong. 
C) The Chinese fixed exchange rate regime may change,which could mean a stronger Yuan that would affect Chinese exports. 
D) Chinese food preferences are very slow to evolve. 
E) China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN). 
A) The affluent Chinese middle class is large and is quick to adopt western lifestyles and product preferences. 
B) Growth in the United States cereal market continues to be strong. 
C) The Chinese fixed exchange rate regime may change,which could mean a stronger Yuan that would affect Chinese exports. 
D) Chinese food preferences are very slow to evolve. 
E) China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN).

Question 4

The absolute advantage form of competitive advantage means

Accepted Answer

A) that a country does not belong to any free trade agreements. 
B) that a country can produce everything better or more cheaply than any other country. 
C) that a country can produce some products better or more cheaply than it can others. 
D) that a country is the sole supplier of a product or service. 
E) that a country can produce something better or more cheaply than any other country. 
A) that a country does not belong to any free trade agreements. 
B) that a country can produce everything better or more cheaply than any other country. 
C) that a country can produce some products better or more cheaply than it can others. 
D) that a country is the sole supplier of a product or service. 
E) that a country can produce something better or more cheaply than any other country.

Question 5

The successor to GATT is

Accepted Answer

A) the European Union. 
B) the WTO. 
C) the ASEAN Free Trade Area. 
D) NAFTA. 
E) USMCA. 
A) the European Union. 
B) the WTO. 
C) the ASEAN Free Trade Area. 
D) NAFTA. 
E) USMCA.

Question 6

The largest free marketplace in the world is

Accepted Answer

A) NAFTA. 
B) the European Union. 
C) ASEAN. 
D) Mercosur. 
E) the Gulf Cooperation Council. 
A) NAFTA. 
B) the European Union. 
C) ASEAN. 
D) Mercosur. 
E) the Gulf Cooperation Council.

Question 7

When Canada placed an extra taxon barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a tariff.

Accepted Answer

A) True 
 B)False

Question 8

All things considered,the best way to achieve foreign direct investment is to use independent agents.

Accepted Answer

A) True 
 B)False

Question 9

KFC's dishes in China come with a side order of rice and soy milk.This is an example of

Accepted Answer

A) over-expansion without support for repairing the product. 
B) adapting to customer needs. 
C) misreading demand for the product. 
D) overpricing caused by exchange rate changes. 
E) a poor business environment for foreign goods. 
A) over-expansion without support for repairing the product. 
B) adapting to customer needs. 
C) misreading demand for the product. 
D) overpricing caused by exchange rate changes. 
E) a poor business environment for foreign goods.

Question 10

The purpose of GATT was to

Accepted Answer

A) improve trade balances in developing countries. 
B) reduce or eliminate trade barriers such as quotas and tariffs. 
C) stop the practice of "dumping." 
D) encourage governments to increase the protection for their domestic industries. 
E) do all of these. 
A) improve trade balances in developing countries. 
B) reduce or eliminate trade barriers such as quotas and tariffs. 
C) stop the practice of "dumping." 
D) encourage governments to increase the protection for their domestic industries. 
E) do all of these.

Question 11

In Germany,McDonald's restaurants sell beer.This is a classic example of

Accepted Answer

A) adapting to customer needs. 
B) importing. 
C) foreign exchange. 
D) misreading demand for the product. 
E) balance of payments. 
A) adapting to customer needs. 
B) importing. 
C) foreign exchange. 
D) misreading demand for the product. 
E) balance of payments.

Question 12

Selling a product abroad for less than the cost of production is referred to as

Accepted Answer

A) direct foreign investment. 
B) setting up a business office. 
C) dumping. 
D) imposing tariffs. 
E) setting up quotas. 
A) direct foreign investment. 
B) setting up a business office. 
C) dumping. 
D) imposing tariffs. 
E) setting up quotas.

Question 13

In which international organization structure does a firm have greatest control over foreign activities?

Accepted Answer

A) Exporting arrangements 
B) Strategic alliances 
C) Importing arrangements 
D) Licensing arrangements 
E) Independent agents 
A) Exporting arrangements 
B) Strategic alliances 
C) Importing arrangements 
D) Licensing arrangements 
E) Independent agents

Question 14

Which of the following is a restriction by one nation on the total number of products of a certain type that can be imported from another nation?

Accepted Answer

A) Limit 
B) Embargo 
C) Allocation 
D) Tariff 
E) Quota 
A) Limit 
B) Embargo 
C) Allocation 
D) Tariff 
E) Quota

Question 15

What is an exporter?

Accepted Answer

An exporter is a bus

Question 16

When a country's exchange rate falls,that country's exports become more expensive to other countries.

Accepted Answer

A) True 
 B)False

Question 17

How does exporting benefit the Canadian economy?

Accepted Answer

- Increased sales volume
- Inc

Question 18

The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

Accepted Answer

A) Country X invests primarily in its textile industry,while Country Y focuses on producing high-yield crops. 
B) Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment. 
C) The southern region of Country X over-produces a wide range of produce,while few crops can be efficiently grown in the northern region. 
D) Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X. 
E) Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit. 
A) Country X invests primarily in its textile industry,while Country Y focuses on producing high-yield crops. 
B) Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment. 
C) The southern region of Country X over-produces a wide range of produce,while few crops can be efficiently grown in the northern region. 
D) Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X. 
E) Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit.

Question 19

Lite Foods is a producer of breakfast cereals such as oatmeal and cornflakes,and its products can be found in nearly all supermarkets across Canada.Lite Foods now has its sights set on international shores,specifically the large Chinese consumer market.Company executives are currently debating the best way for the firm to enter the market. Which of the following,if true,would strengthen the argument for exporting the company's products to China?

Accepted Answer

A) Lite Foods has a large budget set aside for foreign direct investments. 
B) Lite Foods wants to have strict control over its international operations. 
C) Lite Foods must modify its product line to suit Chinese tastes and preferences. 
D) Lite Foods' products do not have a "healthy" reputation in the United States. 
E) Lite Foods has significant excess capacity that results in production overruns. 
A) Lite Foods has a large budget set aside for foreign direct investments. 
B) Lite Foods wants to have strict control over its international operations. 
C) Lite Foods must modify its product line to suit Chinese tastes and preferences. 
D) Lite Foods' products do not have a "healthy" reputation in the United States. 
E) Lite Foods has significant excess capacity that results in production overruns.

Question 20

What is a trade deficit?

Accepted Answer

A trade deficit is a situation

All countries have a comparative advantage in some products.

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

The absolute advantage form of competitive advantage means

The successor to GATT is

The largest free marketplace in the world is

When Canada placed an extra taxon barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a tariff.

All things considered,the best way to achieve foreign direct investment is to use independent agents.

KFC's dishes in China come with a side order of rice and soy milk.This is an example of

The purpose of GATT was to

In Germany,McDonald's restaurants sell beer.This is a classic example of

Selling a product abroad for less than the cost of production is referred to as

In which international organization structure does a firm have greatest control over foreign activities?

Which of the following is a restriction by one nation on the total number of products of a certain type that can be imported from another nation?

What is an exporter?

When a country's exchange rate falls,that country's exports become more expensive to other countries.

How does exporting benefit the Canadian economy?

The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

What is a trade deficit?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Exam 5: The Global Context of Business

All countries have a comparative advantage in some products.

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

The absolute advantage form of competitive advantage means

The successor to GATT is

The largest free marketplace in the world is

When Canada placed an extra taxon barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a tariff.

All things considered,the best way to achieve foreign direct investment is to use independent agents.

KFC's dishes in China come with a side order of rice and soy milk.This is an example of

The purpose of GATT was to

In Germany,McDonald's restaurants sell beer.This is a classic example of

Selling a product abroad for less than the cost of production is referred to as

In which international organization structure does a firm have greatest control over foreign activities?

Which of the following is a restriction by one nation on the total number of products of a certain type that can be imported from another nation?

What is an exporter?

When a country's exchange rate falls,that country's exports become more expensive to other countries.

How does exporting benefit the Canadian economy?

The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

What is a trade deficit?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters