Question 1

What is the purpose of tariffs on imports?

Accepted Answer

A) Maintaining domestic competitiveness 
B) Decreasing exports 
C) Increasing imports 
D) Subsidizing domestic industry 
E) Promoting free trade 
A) Maintaining domestic competitiveness 
B) Decreasing exports 
C) Increasing imports 
D) Subsidizing domestic industry 
E) Promoting free trade

Question 2

Exports are

Accepted Answer

A) services that are created in Canada and sold abroad. 
B) goods and services that are made or grown abroad and sold in Canada. 
C) products that are made or grown in Canada and sold abroad;services cannot be exported. 
D) goods and services that are made or grown in Canada and sold abroad. 
E) products that are made or grown abroad and sold in Canada;services cannot be exported. 
A) services that are created in Canada and sold abroad. 
B) goods and services that are made or grown abroad and sold in Canada. 
C) products that are made or grown in Canada and sold abroad;services cannot be exported. 
D) goods and services that are made or grown in Canada and sold abroad. 
E) products that are made or grown abroad and sold in Canada;services cannot be exported.

Question 3

Using a(n)________ strategy,the company finds a partner in the country in which it would like to conduct business.

Accepted Answer

A) independent agency 
B) direct investment 
C) strategic alliance 
D) replication 
E) branch office 
A) independent agency 
B) direct investment 
C) strategic alliance 
D) replication 
E) branch office

Question 4

When a company sends some of its own managers overseas to conduct business in a local office,this is an example of

Accepted Answer

A) developing a strategic alliance. 
B) outsourcing. 
C) licensing products. 
D) investing directly in a foreign venture. 
E) opening a branch office. 
A) developing a strategic alliance. 
B) outsourcing. 
C) licensing products. 
D) investing directly in a foreign venture. 
E) opening a branch office.

Question 5

What is a government order forbidding exportation and/or importation of a particular product called?

Accepted Answer

A) Embargo 
B) Ban 
C) Suspension 
D) Blockage 
E) Restriction 
A) Embargo 
B) Ban 
C) Suspension 
D) Blockage 
E) Restriction

Question 6

The balance of trade that Canada has experienced has been

Accepted Answer

A) evenly split between favourable and unfavourable with about a seven-year cycle for the past fifty years. 
B) unfavourable since Confederation. 
C) favourable for most of the last four decades but in the past few years significant deficits and smaller surpluses have been recorded. 
D) unfavourable for the last 30 years. 
E) favourable since Confederation. 
A) evenly split between favourable and unfavourable with about a seven-year cycle for the past fifty years. 
B) unfavourable since Confederation. 
C) favourable for most of the last four decades but in the past few years significant deficits and smaller surpluses have been recorded. 
D) unfavourable for the last 30 years. 
E) favourable since Confederation.

Question 7

Over the past few decades,Canada's overall trade balance has generally been favourable,but only because we export so much more to the United States than we import from the United States.However,in more recent years,surpluses have been smaller and,in some years,have turned to fairly large deficits.

Accepted Answer

A) True 
 B)False

Question 8

Derrido is an American firm that has produced several successful animated TV series in the United States.It is considering contracting with one or more international companies to market its products overseas. 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 9

The balance of payments refers to

Accepted Answer

A) the relative difference between money flowing into and out of a country. 
B) the difference in value between a country's total exports and its total imports. 
C) the relative difference in value between a country's total exports and its total imports. 
D) the difference between money flowing into and out of a country as a result of trade and other transactions. 
E) the difference in exchange rates between two countries. 
A) the relative difference between money flowing into and out of a country. 
B) the difference in value between a country's total exports and its total imports. 
C) the relative difference in value between a country's total exports and its total imports. 
D) the difference between money flowing into and out of a country as a result of trade and other transactions. 
E) the difference in exchange rates between two countries.

Question 10

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) There is very little difference between International and multinational firms. 
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) There is very little difference between International and multinational firms. 
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.

Question 11

What is an international competitive advantage stemming from a combination of factor conditions called?

Accepted Answer

A) Global relative advantage 
B) National competitive advantage 
C) World factor advantage 
D) Industrial global advantage 
E) Comparative advantage 
A) Global relative advantage 
B) National competitive advantage 
C) World factor advantage 
D) Industrial global advantage 
E) Comparative advantage

Question 12

The global business environment includes many international forces that influence the outcomes of companies doing business in foreign countries.Which of the following scenarios would best count as evidence of globalization?

Accepted Answer

A) Diamonds mined in Country X are sold on the markets in Country Y.The proceeds are then used to fund a coup against the government in Country X. 
B) A natural disaster disables factories in Country X that produce computer chips for Company Y.Company Y reduces the number of employee shifts and raises the price of its products. 
C) Farmers in Country X have lost most of their wheat crops due to a drought.The market price for wheat triples and the government pays the farmers for a percentage of the lost wheat. 
D) Country X has almost mined all of its available natural energy sources.The government has been investing in alternative energy research for years and now an efficient synthetic energy source has been developed. 
E) Country X has raised the tax on oil products.As a result,more people are taking public transportation and reducing unnecessary car travel. 
A) Diamonds mined in Country X are sold on the markets in Country Y.The proceeds are then used to fund a coup against the government in Country X. 
B) A natural disaster disables factories in Country X that produce computer chips for Company Y.Company Y reduces the number of employee shifts and raises the price of its products. 
C) Farmers in Country X have lost most of their wheat crops due to a drought.The market price for wheat triples and the government pays the farmers for a percentage of the lost wheat. 
D) Country X has almost mined all of its available natural energy sources.The government has been investing in alternative energy research for years and now an efficient synthetic energy source has been developed. 
E) Country X has raised the tax on oil products.As a result,more people are taking public transportation and reducing unnecessary car travel.

Question 13

All of the following characteristics describe an independent agent except that it

Accepted Answer

A) often sells the exporter's products. 
B) often makes sure that customers are happy. 
C) often represents only one firm. 
D) often collects payments. 
E) is a foreign individual or organization. 
A) often sells the exporter's products. 
B) often makes sure that customers are happy. 
C) often represents only one firm. 
D) often collects payments. 
E) is a foreign individual or organization.

Question 14

With respect to exchange rates and competition,it is correct to say that

Accepted Answer

A) companies that conduct international operations do not have to worry about the effect of exchange-rate fluctuations on competition because the accounting department does the conversions. 
B) as the value of a country's currency falls,its balance of trade becomes less favourable. 
C) as the value of a country's currency falls,there is an increased incentive for foreign companies to ship products into the domestic market. 
D) Canadian firms can deal with a stronger Canadian dollar by increasing the efficiency their operations. 
E) all of these are correct. 
A) companies that conduct international operations do not have to worry about the effect of exchange-rate fluctuations on competition because the accounting department does the conversions. 
B) as the value of a country's currency falls,its balance of trade becomes less favourable. 
C) as the value of a country's currency falls,there is an increased incentive for foreign companies to ship products into the domestic market. 
D) Canadian firms can deal with a stronger Canadian dollar by increasing the efficiency their operations. 
E) all of these are correct.

Question 15

During the last few years,the benefits of free trade agreements in North America have been slowly diminished by

Accepted Answer

A) the ups and downs of the Canadian dollar. 
B) the reluctance of U.S.producers to sell goods to Canadian companies. 
C) delays at border crossings between the United States and Canada. 
D) higher inflation rates in the United States than in Canada. 
E) objections from Mexico about unfair deals between the United States and Canada that shut Mexico out of export possibilities. 
A) the ups and downs of the Canadian dollar. 
B) the reluctance of U.S.producers to sell goods to Canadian companies. 
C) delays at border crossings between the United States and Canada. 
D) higher inflation rates in the United States than in Canada. 
E) objections from Mexico about unfair deals between the United States and Canada that shut Mexico out of export possibilities.

Question 16

Which of the following is correct with respect to absolute and comparative advantage?

Accepted Answer

A) Brazilian coffee beans are a good example of comparative advantage. 
B) Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C) A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all)other countries. 
D) All countries have a comparative advantage in some products. 
E) All of these are correct. 
A) Brazilian coffee beans are a good example of comparative advantage. 
B) Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C) A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all)other countries. 
D) All countries have a comparative advantage in some products. 
E) All of these are correct.

Question 17

A country has an absolute advantage in goods that it can produce more efficiently than most other countries.

Accepted Answer

A) True 
 B)False

Question 18

In 2017,Canada had a trade deficit of $23.9 billion.

Accepted Answer

A) True 
 B)False

Question 19

What is a firm that conducts a significant portion of its business in foreign countries called?

Accepted Answer

A) Multinational firm 
B) Global firm 
C) Transnational firm 
D) Worldwide firm 
E) International firm 
A) Multinational firm 
B) Global firm 
C) Transnational firm 
D) Worldwide firm 
E) International firm

Question 20

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 most weaken the argument for venturing into the Chinese market?

Accepted Answer

A) The Chinese government provides subsidies and tax incentives to local manufacturers who export their products. 
B) The Chinese breakfast menu is typically made up of steamed dough,noodles,fruits,and eggs. 
C) It would take a few months to establish operations in China because of regulatory hurdles. 
D) Several international companies have failed in China because of their inability to understand local requirements. 
E) Penetrating the Chinese market requires extensive use of local employees. 
A) The Chinese government provides subsidies and tax incentives to local manufacturers who export their products. 
B) The Chinese breakfast menu is typically made up of steamed dough,noodles,fruits,and eggs. 
C) It would take a few months to establish operations in China because of regulatory hurdles. 
D) Several international companies have failed in China because of their inability to understand local requirements. 
E) Penetrating the Chinese market requires extensive use of local employees.

What is the purpose of tariffs on imports?

Exports are

Using a(n)________ strategy,the company finds a partner in the country in which it would like to conduct business.

When a company sends some of its own managers overseas to conduct business in a local office,this is an example of

What is a government order forbidding exportation and/or importation of a particular product called?

The balance of trade that Canada has experienced has been

Over the past few decades,Canada's overall trade balance has generally been favourable,but only because we export so much more to the United States than we import from the United States.However,in more recent years,surpluses have been smaller and,in some years,have turned to fairly large deficits.

The balance of payments refers to

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

What is an international competitive advantage stemming from a combination of factor conditions called?

The global business environment includes many international forces that influence the outcomes of companies doing business in foreign countries.Which of the following scenarios would best count as evidence of globalization?

All of the following characteristics describe an independent agent except that it

With respect to exchange rates and competition,it is correct to say that

During the last few years,the benefits of free trade agreements in North America have been slowly diminished by

Which of the following is correct with respect to absolute and comparative advantage?

A country has an absolute advantage in goods that it can produce more efficiently than most other countries.

In 2017,Canada had a trade deficit of $23.9 billion.

What is a firm that conducts a significant portion of its business in foreign countries called?

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

What is the purpose of tariffs on imports?

Exports are

Using a(n)________ strategy,the company finds a partner in the country in which it would like to conduct business.

When a company sends some of its own managers overseas to conduct business in a local office,this is an example of

What is a government order forbidding exportation and/or importation of a particular product called?

The balance of trade that Canada has experienced has been

Over the past few decades,Canada's overall trade balance has generally been favourable,but only because we export so much more to the United States than we import from the United States.However,in more recent years,surpluses have been smaller and,in some years,have turned to fairly large deficits.

The balance of payments refers to

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

What is an international competitive advantage stemming from a combination of factor conditions called?

The global business environment includes many international forces that influence the outcomes of companies doing business in foreign countries.Which of the following scenarios would best count as evidence of globalization?

All of the following characteristics describe an independent agent except that it

With respect to exchange rates and competition,it is correct to say that

During the last few years,the benefits of free trade agreements in North America have been slowly diminished by

Which of the following is correct with respect to absolute and comparative advantage?

A country has an absolute advantage in goods that it can produce more efficiently than most other countries.

In 2017,Canada had a trade deficit of $23.9 billion.

What is a firm that conducts a significant portion of its business in foreign countries called?

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