Question 1

As the value of a country's currency rises,

Accepted Answer

A) domestic companies will have a harder time selling their products in foreign markets. 
B) foreign companies will find it harder to sell their products in local markets. 
C) imports and exports will remain relatively constant. 
D) domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E) all of these will happen. 
A) domestic companies will have a harder time selling their products in foreign markets. 
B) foreign companies will find it harder to sell their products in local markets. 
C) imports and exports will remain relatively constant. 
D) domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E) all of these will happen.

Question 2

When Manulife Financial entered the Chinese market,it made an agreement with Sinochem,a state-owned trading company.This is an example of

Accepted Answer

A) a strategic alliance. 
B) world product mandating. 
C) a licensing arrangement. 
D) a branch office. 
E) an independent agent. 
A) a strategic alliance. 
B) world product mandating. 
C) a licensing arrangement. 
D) a branch office. 
E) an independent agent.

Question 3

Why should companies conducting international operations be concerned about exchange rate fluctuations?

Accepted Answer

Changes in exchange rates affe

Question 4

What is the difference between the balance of trade and the balance of payments?

Accepted Answer

The balance of trade is the difference b

Question 5

Canada prohibits the importing of ivory from any foreign nation.This is a(n)

Accepted Answer

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

Question 6

Herald Inc. ,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Accepted Answer

A) multinational firm. 
B) exporter. 
C) independent agent. 
D) purely domestic firm. 
E) customs broker. 
A) multinational firm. 
B) exporter. 
C) independent agent. 
D) purely domestic firm. 
E) customs broker.

Question 7

Describe the impact of exports and imports on a country's balance of trade and its balance of payments.

Accepted Answer

Exports are products created domesticall

Question 8

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

Accepted Answer

A) Determine if the company has the skills necessary to do business abroad 
B) Determine if there is international demand for the product 
C) Assess the business climate for receptivity to imports 
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) Determine if there is international demand for the product 
C) Assess the business climate for receptivity to imports 
D) Determine if the product needs to be modified to fit the foreign market 
E) Conduct market research to determine potential sales

Question 9

Strategic alliances have declined somewhat in recent years because foreign governments have put up more and more bureaucratic barriers to foreign ownership.

Accepted Answer

A) True 
 B)False

Question 10

Canadians who were opposed to free trade feared all of the following except

Accepted Answer

A) Canadian cultural sovereignty would be lost. 
B) the United States might take our natural resources. 
C) Canada would lose the right to control its own environmental standards. 
D) jobs would be lost to other countries. 
E) Canada would have to tie the Canadian dollar to the U.S.dollar. 
A) Canadian cultural sovereignty would be lost. 
B) the United States might take our natural resources. 
C) Canada would lose the right to control its own environmental standards. 
D) jobs would be lost to other countries. 
E) Canada would have to tie the Canadian dollar to the U.S.dollar.

Question 11

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

Accepted Answer

A) the target country's balance of trade. 
B) demand for the wine. 
C) legal aspects of the target country. 
D) cultural aspects of the target country. 
E) economic road blocks. 
A) the target country's balance of trade. 
B) demand for the wine. 
C) legal aspects of the target country. 
D) cultural aspects of the target country. 
E) economic road blocks.

Question 12

List and briefly explain the different international organizational structures that can be used to "go international."

Accepted Answer

A company can use an independent agent (

Question 13

Because it improves the economies to such a great extent,governments encourage unrestricted trade with foreign countries.

Accepted Answer

A) True 
 B)False

Question 14

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Accepted Answer

- Share the costs and risks of

Question 15

Associations of producers that control supply and prices are called

Accepted Answer

A) cartels. 
B) foreign direct investments. 
C) business offices. 
D) quotas. 
E) independent agents. 
A) cartels. 
B) foreign direct investments. 
C) business offices. 
D) quotas. 
E) independent agents.

Question 16

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably a(n)

Accepted Answer

A) branch office. 
B) direct investment. 
C) strategic alliance. 
D) licensing arrangement. 
E) independent agent. 
A) branch office. 
B) direct investment. 
C) strategic alliance. 
D) licensing arrangement. 
E) independent agent.

Question 17

A firm that produces goods in one country and distributes and sells them in other countries is

Accepted Answer

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

Question 18

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Accepted Answer

A) That nation has multinational companies. 
B) That nation has an absolute advantage. 
C) That nation has a positive balance of trade. 
D) That nation has a negative balance of trade. 
E) All of these 
A) That nation has multinational companies. 
B) That nation has an absolute advantage. 
C) That nation has a positive balance of trade. 
D) That nation has a negative balance of trade. 
E) All of these

Question 19

Other than a quota,embargo,or tariff,what legal barriers might Canada use to discourage the importation of cell phones?

Accepted Answer

Parliament might consider a subsidy prog

Question 20

Country Z can produce pig iron (an intermediate product in the iron industry which is also called crude iron)more efficiently than any other product.Which type of advantage in pig iron does Country Z have?

Accepted Answer

A) Absolute advantage 
B) National competitive advantage 
C) Comparative advantage 
D) Trade balance advantage 
E) Resource advantage 
A) Absolute advantage 
B) National competitive advantage 
C) Comparative advantage 
D) Trade balance advantage 
E) Resource advantage

As the value of a country's currency rises,

When Manulife Financial entered the Chinese market,it made an agreement with Sinochem,a state-owned trading company.This is an example of

Why should companies conducting international operations be concerned about exchange rate fluctuations?

What is the difference between the balance of trade and the balance of payments?

Canada prohibits the importing of ivory from any foreign nation.This is a(n)

Herald Inc. ,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Describe the impact of exports and imports on a country's balance of trade and its balance of payments.

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

Strategic alliances have declined somewhat in recent years because foreign governments have put up more and more bureaucratic barriers to foreign ownership.

Canadians who were opposed to free trade feared all of the following except

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

List and briefly explain the different international organizational structures that can be used to "go international."

Because it improves the economies to such a great extent,governments encourage unrestricted trade with foreign countries.

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Associations of producers that control supply and prices are called

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably a(n)

A firm that produces goods in one country and distributes and sells them in other countries is

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Other than a quota,embargo,or tariff,what legal barriers might Canada use to discourage the importation of cell phones?

Country Z can produce pig iron (an intermediate product in the iron industry which is also called crude iron)more efficiently than any other product.Which type of advantage in pig iron does Country Z have?

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

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Exam 5: The Global Context of Business

As the value of a country's currency rises,

When Manulife Financial entered the Chinese market,it made an agreement with Sinochem,a state-owned trading company.This is an example of

Why should companies conducting international operations be concerned about exchange rate fluctuations?

What is the difference between the balance of trade and the balance of payments?

Canada prohibits the importing of ivory from any foreign nation.This is a(n)

Herald Inc. ,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Describe the impact of exports and imports on a country's balance of trade and its balance of payments.

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

Strategic alliances have declined somewhat in recent years because foreign governments have put up more and more bureaucratic barriers to foreign ownership.

Canadians who were opposed to free trade feared all of the following except

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

List and briefly explain the different international organizational structures that can be used to "go international."

Because it improves the economies to such a great extent,governments encourage unrestricted trade with foreign countries.

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Associations of producers that control supply and prices are called

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably a(n)

A firm that produces goods in one country and distributes and sells them in other countries is

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Other than a quota,embargo,or tariff,what legal barriers might Canada use to discourage the importation of cell phones?

Country Z can produce pig iron (an intermediate product in the iron industry which is also called crude iron)more efficiently than any other product.Which type of advantage in pig iron does Country Z have?

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

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