Question 1

In which international organizational structure would royalties likely be paid to the exporter?

Accepted Answer

A) Strategic alliance 
B) Joint venture 
C) Licensing arrangement 
D) A green field manufacturing plant 
E) Branch office 
A) Strategic alliance 
B) Joint venture 
C) Licensing arrangement 
D) A green field manufacturing plant 
E) Branch office

Question 2

World product mandating means that foreign buyers who want certain Canadian products are required to buy certain other products as part of a package deal.

Accepted Answer

A) True 
 B)False

Question 3

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ________,and the most corrupt countries are ________.

Accepted Answer

A) Denmark,Finland,and New Zealand;North Korea,Afghanistan,and Cambodia 
B) Iceland,Denmark,and New Zealand;Haiti,Myanmar,and Somalia 
C) Canada,the United States,and New Zealand;Myanmar,Chad,and Russia 
D) Denmark,New Zealand,and Singapore;Myanmar,Afghanistan,and Somalia 
E) Ireland,the United States,and Canada;Zambia,Libya,and Chad 
A) Denmark,Finland,and New Zealand;North Korea,Afghanistan,and Cambodia 
B) Iceland,Denmark,and New Zealand;Haiti,Myanmar,and Somalia 
C) Canada,the United States,and New Zealand;Myanmar,Chad,and Russia 
D) Denmark,New Zealand,and Singapore;Myanmar,Afghanistan,and Somalia 
E) Ireland,the United States,and Canada;Zambia,Libya,and Chad

Question 4

In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.

Accepted Answer

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

Question 5

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

Accepted Answer

When the value of a country's currency r

Question 6

What is the difference between absolute and comparative advantage?

Accepted Answer

An absolute advantage exists when a coun

Question 7

Merritt Corp.is interested in doing business internationally.They have already determined that there is international demand for their product.What should they do next?

Accepted Answer

A) Determine if the company has the skills necessary to do business abroad 
B) Contact a local business to form a joint venture 
C) Assess the business climate for reaction to foreign products 
D) Determine if the product needs to be modified to fit the foreign market 
E) Conduct market research to determine potential sales 
A) Determine if the company has the skills necessary to do business abroad 
B) Contact a local business to form a joint venture 
C) Assess the business climate for reaction to foreign products 
D) Determine if the product needs to be modified to fit the foreign market 
E) Conduct market research to determine potential sales

Question 8

Define licensing arrangements and strategic alliances and discuss their relative merits.

Accepted Answer

With a licensing arrangement,a firm give

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

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 online 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 online 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 10

According to the World Bank,________ are high-income countries,while ________ are upper middle-income countries.

Accepted Answer

A) Australia,Japan,and Israel;China,Argentina,and South Africa 
B) China,Colombia,and Lebanon;Armenia,Guatemala,and Vietnam 
C) Argentina and South Africa;Colombia,Lebanon,and Turkey 
D) Colombia,Lebanon,and Turkey;Australia,Japan,South Korea; 
E) Canada,the United States,and most countries in Europe;Kuwait,the United Arab Emirates and Oman. 
A) Australia,Japan,and Israel;China,Argentina,and South Africa 
B) China,Colombia,and Lebanon;Armenia,Guatemala,and Vietnam 
C) Argentina and South Africa;Colombia,Lebanon,and Turkey 
D) Colombia,Lebanon,and Turkey;Australia,Japan,South Korea; 
E) Canada,the United States,and most countries in Europe;Kuwait,the United Arab Emirates and Oman.

Question 11

If there is a favourable balance of payments,it means that

Accepted Answer

A) a country exports manufactured goods and imports raw materials. 
B) a country imports more than it exports for each country with which it trades. 
C) a country exports more than it imports for each country with which it trades. 
D) the country has more money flowing into it than out as a result of trade and other transactions. 
E) a country exports raw materials and imports manufactured goods. 
A) a country exports manufactured goods and imports raw materials. 
B) a country imports more than it exports for each country with which it trades. 
C) a country exports more than it imports for each country with which it trades. 
D) the country has more money flowing into it than out as a result of trade and other transactions. 
E) a country exports raw materials and imports manufactured goods.

Question 12

Explain what the term exchange rate means.What is a "floating" exchange rate?

Accepted Answer

An exchange rate is the rate at which on

Question 13

If the Canadian dollar rises,our balance of trade will most likely ________,resulting in a(n)________ of jobs in the export industry.

Accepted Answer

A) rise;increase 
B) decrease;decrease 
C) decrease;increase 
D) rise;decrease 
E) none of these 
A) rise;increase 
B) decrease;decrease 
C) decrease;increase 
D) rise;decrease 
E) none of these

Question 14

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

Accepted Answer

A) Consumers shopping on a daily basis 
B) A younger population 
C) An older population 
D) Adjusted menus,ingredients,and hours of operation 
E) Consumers that are shorter and slimmer than Canadian consumers 
A) Consumers shopping on a daily basis 
B) A younger population 
C) An older population 
D) Adjusted menus,ingredients,and hours of operation 
E) Consumers that are shorter and slimmer than Canadian consumers

Question 15

The comparative advantage form of competitive advantage means

Accepted Answer

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

Question 16

Local content laws require that products sold in a country must be completely made in that country.

Accepted Answer

A) True 
 B)False

Question 17

Competitive marketing of domestic products against foreign products is which of the following?

Accepted Answer

A) Global competitiveness 
B) World competitiveness 
C) International competitiveness 
D) Multinational competitiveness 
E) Ethnic competitiveness 
A) Global competitiveness 
B) World competitiveness 
C) International competitiveness 
D) Multinational competitiveness 
E) Ethnic competitiveness

Question 18

When an exporting firm establishes a location in a foreign country to sell its products more effectively it is referred to as which of the following?

Accepted Answer

A) Foreign outpost 
B) Branch office 
C) Foreign direct investment 
D) International subsidiary 
E) Licensing arrangement 
A) Foreign outpost 
B) Branch office 
C) Foreign direct investment 
D) International subsidiary 
E) Licensing arrangement

Question 19

What is the economic value of all the products that a country exports minus the economic value of all the products it imports called?

Accepted Answer

A) Balance of payments 
B) Balance of commerce 
C) Balance of exchange 
D) Balance of trade 
E) Balance of transactions 
A) Balance of payments 
B) Balance of commerce 
C) Balance of exchange 
D) Balance of trade 
E) Balance of transactions

Question 20

The world economy is increasingly transforming into a single,interdependent system in a process called world interconnection.

Accepted Answer

A) True 
 B)False

In which international organizational structure would royalties likely be paid to the exporter?

World product mandating means that foreign buyers who want certain Canadian products are required to buy certain other products as part of a package deal.

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ,and the most corrupt countries are .

In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.

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

What is the difference between absolute and comparative advantage?

Merritt Corp.is interested in doing business internationally.They have already determined that there is international demand for their product.What should they do next?

Define licensing arrangements and strategic alliances and discuss their relative merits.

According to the World Bank, are high-income countries,while are upper middle-income countries.

If there is a favourable balance of payments,it means that

Explain what the term exchange rate means.What is a "floating" exchange rate?

If the Canadian dollar rises,our balance of trade will most likely ,resulting in a(n) of jobs in the export industry.

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

The comparative advantage form of competitive advantage means

Local content laws require that products sold in a country must be completely made in that country.

Competitive marketing of domestic products against foreign products is which of the following?

When an exporting firm establishes a location in a foreign country to sell its products more effectively it is referred to as which of the following?

What is the economic value of all the products that a country exports minus the economic value of all the products it imports called?

The world economy is increasingly transforming into a single,interdependent system in a process called world interconnection.

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

In which international organizational structure would royalties likely be paid to the exporter?

World product mandating means that foreign buyers who want certain Canadian products are required to buy certain other products as part of a package deal.

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ________,and the most corrupt countries are ________.

In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.

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

What is the difference between absolute and comparative advantage?

Merritt Corp.is interested in doing business internationally.They have already determined that there is international demand for their product.What should they do next?

Define licensing arrangements and strategic alliances and discuss their relative merits.

According to the World Bank,________ are high-income countries,while ________ are upper middle-income countries.

If there is a favourable balance of payments,it means that

Explain what the term exchange rate means.What is a "floating" exchange rate?

If the Canadian dollar rises,our balance of trade will most likely ________,resulting in a(n)________ of jobs in the export industry.

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

The comparative advantage form of competitive advantage means

Local content laws require that products sold in a country must be completely made in that country.

Competitive marketing of domestic products against foreign products is which of the following?

When an exporting firm establishes a location in a foreign country to sell its products more effectively it is referred to as which of the following?

What is the economic value of all the products that a country exports minus the economic value of all the products it imports called?

The world economy is increasingly transforming into a single,interdependent system in a process called world interconnection.

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

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ,and the most corrupt countries are .

According to the World Bank, are high-income countries,while are upper middle-income countries.

If the Canadian dollar rises,our balance of trade will most likely ,resulting in a(n) of jobs in the export industry.