Question 1

Supporters of free trade in Canada argued all of the following except

Accepted Answer

A) Canadian imports would increase because of free trade. 
B) there is nothing in the free trade agreements that threatens Canada's control over its energy resources. 
C) access to U.S.markets is guaranteed by free trade and is therefore crucial to protecting Canadian employment. 
D) the environment is not covered in free trade agreements. 
E) the free trade agreements are about trade and tariffs,not cultural sovereignty. 
A) Canadian imports would increase because of free trade. 
B) there is nothing in the free trade agreements that threatens Canada's control over its energy resources. 
C) access to U.S.markets is guaranteed by free trade and is therefore crucial to protecting Canadian employment. 
D) the environment is not covered in free trade agreements. 
E) the free trade agreements are about trade and tariffs,not cultural sovereignty.

Question 2

Local content laws state that

Accepted Answer

A) products sold in a country should be at least partially made in that country. 
B) an imported product must meet local standards before it can be brought in. 
C) an imported product must include some raw materials from the domestic country. 
D) an imported product must fit with the local culture before it can be brought in. 
E) an imported product must abide by local bylaws before it can be brought in. 
A) products sold in a country should be at least partially made in that country. 
B) an imported product must meet local standards before it can be brought in. 
C) an imported product must include some raw materials from the domestic country. 
D) an imported product must fit with the local culture before it can be brought in. 
E) an imported product must abide by local bylaws before it can be brought in.

Question 3

A country's balance of payments is the difference between money flowing into the country and money flowing out because of trade and other transactions.

Accepted Answer

A) True 
 B)False

Question 4

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

Accepted Answer

A) an importer. 
B) an international firm. 
C) mininational. 
D) an exporter. 
E) a multinational firm. 
A) an importer. 
B) an international firm. 
C) mininational. 
D) an exporter. 
E) a multinational firm.

Question 5

Tariffs increase government revenue,discourage the sale of imported products,and raise prices for consumers.

Accepted Answer

A) True 
 B)False

Question 6

List and briefly describe the three basic barriers to international trade.Give examples of each.

Accepted Answer

The three basic barriers are: (1)social

Question 7

Protecting domestic business at the expense of free market competition is which of the following?

Accepted Answer

A) Shielding 
B) Isolating 
C) Subsidizing 
D) Protectionism 
E) Insulation 
A) Shielding 
B) Isolating 
C) Subsidizing 
D) Protectionism 
E) Insulation

Question 8

Which areas represent the three major market places for international business?

Accepted Answer

A) North America,South America,and Asia-Pacific 
B) North America,Europe,and Asia-Pacific 
C) South America,Africa,and Asia-Pacific 
D) South America,Europe,and Africa 
E) Asia-Pacific,Europe,and Africa 
A) North America,South America,and Asia-Pacific 
B) North America,Europe,and Asia-Pacific 
C) South America,Africa,and Asia-Pacific 
D) South America,Europe,and Africa 
E) Asia-Pacific,Europe,and Africa

Question 9

Fembooks sells books online.It has established an excellent reputation for finding out-of-print and hard-to-find books of interest to women.The CEO of Fembooks is considering truly going global with the business,since it is already established online. The vice-president further argues that more reasons exist for keeping a domestic focus for Fembooks despite the global reach of online channels.Which of the following statements,if true,would go against the vice-president's argument?

Accepted Answer

A) Bandwidth variability can cause technical problems with online ordering. 
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 is estimated to increase by another 10 percent in the next three years. 
E) Local Internet webpage 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 online ordering. 
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 is estimated to increase by another 10 percent in the next three years. 
E) Local Internet webpage writers would need to ensure that all offensive colors,words,and images were removed to ensure cultural adaptation.

Question 10

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

Accepted Answer

A) franchisee. 
B) multinational firm. 
C) branch office. 
D) international firm. 
E) independent agent. 
A) franchisee. 
B) multinational firm. 
C) branch office. 
D) international firm. 
E) independent agent.

Question 11

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture.To take advantage of this she should explore

Accepted Answer

A) subsidies. 
B) exporting. 
C) a trade deficit. 
D) foreign exchange. 
E) importing. 
A) subsidies. 
B) exporting. 
C) a trade deficit. 
D) foreign exchange. 
E) importing.

Question 12

The contemporary world economy revolves around the major marketplaces of North America,Europe,and Asia-Pacific.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not true about protectionism?

Accepted Answer

A) It reduces competition. 
B) It may cause friction between nations. 
C) It increases prices to consumers. 
D) Tariffs and quotas protect domestic firms and jobs. 
E) It is a revenue source for the provincial governments in Canada. 
A) It reduces competition. 
B) It may cause friction between nations. 
C) It increases prices to consumers. 
D) Tariffs and quotas protect domestic firms and jobs. 
E) It is a revenue source for the provincial governments in Canada.

Question 14

An embargo is a government order forbidding exportation and/or importation of a product of a country.

Accepted Answer

A) True 
 B)False

Question 15

What are the advantages and disadvantages of globalization?

Accepted Answer

Globalization has increased the standard

Question 16

A nation's balance of trade is

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. 
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. 
E) the difference in exchange rates between two countries.

Question 17

A location that an exporting firm establishes in a foreign country to sell the company's products is known as foreign direct investment (FDI).

Accepted Answer

A) True 
 B)False

Question 18

What is a trade surplus?

Accepted Answer

A trade surplus is a situation

Question 19

All of the following are included in the balance of payments except

Accepted Answer

A) money paid for imports. 
B) money paid by domestic corporations for taxes. 
C) money spent by tourists. 
D) money spent on foreign aid. 
E) money paid for exports. 
A) money paid for imports. 
B) money paid by domestic corporations for taxes. 
C) money spent by tourists. 
D) money spent on foreign aid. 
E) money paid for exports.

Question 20

When the value of the Canadian dollar rises,

Accepted Answer

A) both our imports and our exports become more expensive. 
B) there is no change in the price of our imports and our exports. 
C) our imports become more expensive and our exports become cheaper. 
D) our imports become cheaper and our exports become more expensive. 
E) both our imports and our exports become cheaper. 
A) both our imports and our exports become more expensive. 
B) there is no change in the price of our imports and our exports. 
C) our imports become more expensive and our exports become cheaper. 
D) our imports become cheaper and our exports become more expensive. 
E) both our imports and our exports become cheaper.

Supporters of free trade in Canada argued all of the following except

Local content laws state that

A country's balance of payments is the difference between money flowing into the country and money flowing out because of trade and other transactions.

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

Tariffs increase government revenue,discourage the sale of imported products,and raise prices for consumers.

List and briefly describe the three basic barriers to international trade.Give examples of each.

Protecting domestic business at the expense of free market competition is which of the following?

Which areas represent the three major market places for international business?

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture.To take advantage of this she should explore

The contemporary world economy revolves around the major marketplaces of North America,Europe,and Asia-Pacific.

Which of the following is not true about protectionism?

An embargo is a government order forbidding exportation and/or importation of a product of a country.

What are the advantages and disadvantages of globalization?

A nation's balance of trade is

A location that an exporting firm establishes in a foreign country to sell the company's products is known as foreign direct investment (FDI).

What is a trade surplus?

All of the following are included in the balance of payments except

When the value of the Canadian dollar rises,

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

Supporters of free trade in Canada argued all of the following except

Local content laws state that

A country's balance of payments is the difference between money flowing into the country and money flowing out because of trade and other transactions.

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

Tariffs increase government revenue,discourage the sale of imported products,and raise prices for consumers.

List and briefly describe the three basic barriers to international trade.Give examples of each.

Protecting domestic business at the expense of free market competition is which of the following?

Which areas represent the three major market places for international business?

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture.To take advantage of this she should explore

The contemporary world economy revolves around the major marketplaces of North America,Europe,and Asia-Pacific.

Which of the following is not true about protectionism?

An embargo is a government order forbidding exportation and/or importation of a product of a country.

What are the advantages and disadvantages of globalization?

A nation's balance of trade is

A location that an exporting firm establishes in a foreign country to sell the company's products is known as foreign direct investment (FDI).

What is a trade surplus?

All of the following are included in the balance of payments except

When the value of the Canadian dollar rises,

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