Question 1

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Accepted Answer

A) True 
 B)False  True

Question 2

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n)_____.

Accepted Answer

A) comparative advantage 
B) comparative disadvantage 
C) absolute advantage 
D) absolute disadvantage 
E) domestic advantage 
A) comparative advantage 
B) comparative disadvantage 
C) absolute advantage 
D) absolute disadvantage 
E) domestic advantage C

Question 3

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n)_____.

Accepted Answer

A) sales tax 
B) transactional tax 
C) ad valorem tariff 
D) fixed tariff 
E) export tariff 
A) sales tax 
B) transactional tax 
C) ad valorem tariff 
D) fixed tariff 
E) export tariff C

Question 4

Identify the industrialized nation from among the following.

Accepted Answer

A) Iraq 
B) Myanmar 
C) Pakistan 
D) North Korea 
E) Japan 
A) Iraq 
B) Myanmar 
C) Pakistan 
D) North Korea 
E) Japan

Question 5

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

Accepted Answer

A) A licensor 
B) An exporter 
C) A monopolist corporation 
D) A multinational corporation 
E) A contract manufacturing corporation 
A) A licensor 
B) An exporter 
C) A monopolist corporation 
D) A multinational corporation 
E) A contract manufacturing corporation

Question 6

The effective translation of product names can be crucial to the success in foreign markets because of:

Accepted Answer

A) political barriers. 
B) cultural barriers. 
C) legal barriers. 
D) the presence of export quotas. 
E) the differences in body language. 
A) political barriers. 
B) cultural barriers. 
C) legal barriers. 
D) the presence of export quotas. 
E) the differences in body language.

Question 7

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

Accepted Answer

A) True 
 B)False

Question 8

International business involves the buying,selling,and trading of goods and services across national boundaries.

Accepted Answer

A) True 
 B)False

Question 9

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Accepted Answer

A) True 
 B)False

Question 10

An intermediary who handles international transactions for other firms is acting as a(n):

Accepted Answer

A) licensing agent. 
B) franchising agent. 
C) export agent. 
D) contract manufacturer. 
E) direct investor. 
A) licensing agent. 
B) franchising agent. 
C) export agent. 
D) contract manufacturer. 
E) direct investor.

Question 11

The usefulness of the International Monetary Fund (IMF)for developed countries is limited because:

Accepted Answer

A) these countries rely extensively on the public market. 
B) the IMF does not provide short-term loans. 
C) the IMF does not aid countries with balance-of-payment deficits. 
D) the IMF was forced to decrease its funds to emerging economies. 
E) these countries use private markets as a major source of capital. 
A) these countries rely extensively on the public market. 
B) the IMF does not provide short-term loans. 
C) the IMF does not aid countries with balance-of-payment deficits. 
D) the IMF was forced to decrease its funds to emerging economies. 
E) these countries use private markets as a major source of capital.

Question 12

Agro Corp.,based in the country of Arahonia,is a company that produces agricultural products.The domestic market of Arahonia is not sufficient to support Agro Corp.'s large-scale level of production because Arahonia is a small but highly industrialized country.Thus,Agro Corp.decides to sell its products to the agriculture-based country of Petinberg at less than their production cost.This process is termed as _____.

Accepted Answer

A) dumping 
B) offshoring 
C) outsourcing 
D) monopolizing 
E) franchising 
A) dumping 
B) offshoring 
C) outsourcing 
D) monopolizing 
E) franchising

Question 13

In most countries,participation in international business is restricted to large corporations.

Accepted Answer

A) True 
 B)False

Question 14

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Accepted Answer

A) True 
 B)False

Question 15

Identify the true statement about tariffs and trade restrictions.

Accepted Answer

A) Countries are not allowed to levy tariffs for political reasons. 
B) Protective tariffs allow more expensive domestic goods to compete with foreign ones. 
C) Critics of protective tariffs argue that their use inhibits free trade and competition. 
D) Countries cannot allow citizens traveling abroad to bring home merchandise without paying an import tariff. 
E) Quotas cannot be established by voluntary agreements. 
A) Countries are not allowed to levy tariffs for political reasons. 
B) Protective tariffs allow more expensive domestic goods to compete with foreign ones. 
C) Critics of protective tariffs argue that their use inhibits free trade and competition. 
D) Countries cannot allow citizens traveling abroad to bring home merchandise without paying an import tariff. 
E) Quotas cannot be established by voluntary agreements.

Question 16

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

Accepted Answer

A) contract manufacturing 
B) licensing 
C) direct investment 
D) offshoring 
E) outsourcing 
A) contract manufacturing 
B) licensing 
C) direct investment 
D) offshoring 
E) outsourcing

Question 17

A(n)_____ exists when a country is the only source or producer of an item.

Accepted Answer

A) comparative advantage 
B) comparative disadvantage 
C) absolute advantage 
D) absolute disadvantage 
E) domestic advantage 
A) comparative advantage 
B) comparative disadvantage 
C) absolute advantage 
D) absolute disadvantage 
E) domestic advantage

Question 18

_____ is the single largest trading partner of the United States.

Accepted Answer

A) Mexico 
B) India 
C) China 
D) Japan 
E) Canada 
A) Mexico 
B) India 
C) China 
D) Japan 
E) Canada

Question 19

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n)_____ barrier.

Accepted Answer

A) technological 
B) political 
C) legal 
D) social 
E) economic 
A) technological 
B) political 
C) legal 
D) social 
E) economic

Question 20

Exporting may occur through _____,which involve bartering products for other products rather than currency.

Accepted Answer

A) export agencies 
B) free-trade agreements 
C) direct selling contracts 
D) countertrade agreements 
E) outsourcing agreements 
A) export agencies 
B) free-trade agreements 
C) direct selling contracts 
D) countertrade agreements 
E) outsourcing agreements

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n)_____.

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n)_____.

Identify the industrialized nation from among the following.

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

The effective translation of product names can be crucial to the success in foreign markets because of:

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

International business involves the buying,selling,and trading of goods and services across national boundaries.

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

An intermediary who handles international transactions for other firms is acting as a(n):

The usefulness of the International Monetary Fund (IMF)for developed countries is limited because:

In most countries,participation in international business is restricted to large corporations.

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Identify the true statement about tariffs and trade restrictions.

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

A(n)_____ exists when a country is the only source or producer of an item.

_____ is the single largest trading partner of the United States.

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n)_____ barrier.

Exporting may occur through _____,which involve bartering products for other products rather than currency.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Options for Organizing Business

Small Business,entrepreneurship,and Franchising

The Nature of Management

Organization,teamwork,and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 3: Business in a Borderless World

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n)_____.

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n)_____.

Identify the industrialized nation from among the following.

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

The effective translation of product names can be crucial to the success in foreign markets because of:

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

International business involves the buying,selling,and trading of goods and services across national boundaries.

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

An intermediary who handles international transactions for other firms is acting as a(n):

The usefulness of the International Monetary Fund (IMF)for developed countries is limited because:

In most countries,participation in international business is restricted to large corporations.

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Identify the true statement about tariffs and trade restrictions.

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

A(n)_____ exists when a country is the only source or producer of an item.

_____ is the single largest trading partner of the United States.

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n)_____ barrier.

Exporting may occur through _____,which involve bartering products for other products rather than currency.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Options for Organizing Business

Small Business,entrepreneurship,and Franchising

The Nature of Management

Organization,teamwork,and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters