Question 1

Even when products are standardized,advertising often has to be modified to adapt to local cultures.

Accepted Answer

A) True 
 B)False

Question 2

The _____ is the closest thing the world has to an international central bank.

Accepted Answer

A) International Monetary Fund 
B) World Bank 
C) Citicorp Bank 
D) Organization for Economic Cooperation and Development 
E) World Trade Organization 
A) International Monetary Fund 
B) World Bank 
C) Citicorp Bank 
D) Organization for Economic Cooperation and Development 
E) World Trade Organization

Question 3

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

Accepted Answer

A) True 
 B)False

Question 4

Because of an unfavorable political situation between the countries,the country of Thetasia has placed a government order to prohibit the trade of private vehicles with the country of Calibria.Thetasia has maintained a(n)_____ with Calibria.

Accepted Answer

A) trade tariff 
B) trade embargo 
C) quota limit 
D) fixed tariff 
E) ad valorem tariff 
A) trade tariff 
B) trade embargo 
C) quota limit 
D) fixed tariff 
E) ad valorem tariff

Question 5

On which of the following grounds are multinational corporations (MNCs)often criticized by antiglobalization activists?

Accepted Answer

A) They increase unemployment in the host country. 
B) They bring in technology that is unknown to the host country. 
C) They use capital-intensive mode of production. 
D) They are liable to pay the taxes levied by the government of the host country. 
E) They increase the gap between rich and poor nations. 
A) They increase unemployment in the host country. 
B) They bring in technology that is unknown to the host country. 
C) They use capital-intensive mode of production. 
D) They are liable to pay the taxes levied by the government of the host country. 
E) They increase the gap between rich and poor nations.

Question 6

The difference between the flow of money into and out of a country is called its _____.

Accepted Answer

A) balance of trade 
B) domestic gain 
C) balance of payments 
D) credit balance 
E) exchange rate 
A) balance of trade 
B) domestic gain 
C) balance of payments 
D) credit balance 
E) exchange rate

Question 7

Choose the international organization based in Geneva,Switzerland,that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT),which deals with the rules of trade between nations.

Accepted Answer

A) The European Union 
B) The World Trade Organization 
C) The World Bank 
D) The Association of Southeast Asian Nations 
E) The Asia-Pacific Economic Cooperation 
A) The European Union 
B) The World Trade Organization 
C) The World Bank 
D) The Association of Southeast Asian Nations 
E) The Asia-Pacific Economic Cooperation

Question 8

Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits.This exemplifies a(n):

Accepted Answer

A) globalization strategy. 
B) outsourcing strategy. 
C) strategic alliance. 
D) multinational strategy. 
E) joint venture. 
A) globalization strategy. 
B) outsourcing strategy. 
C) strategic alliance. 
D) multinational strategy. 
E) joint venture.

Question 9

Which is the correct statement regarding tariffs and trade restrictions?

Accepted Answer

A) Supporters of protective tariffs say they insulate new domestic industries against well-established foreign competitors. 
B) Tariffs are part of a country's legal structure,and thus,cannot established or removed for political reasons. 
C) Countries cannot control their foreign trade by forcing businesspeople to buy and sell foreign products through central banks. 
D) Embargoes are created to encourage the trade of particular products. 
E) Items purchased in different countries cannot have different tariffs if the items are identical. 
A) Supporters of protective tariffs say they insulate new domestic industries against well-established foreign competitors. 
B) Tariffs are part of a country's legal structure,and thus,cannot established or removed for political reasons. 
C) Countries cannot control their foreign trade by forcing businesspeople to buy and sell foreign products through central banks. 
D) Embargoes are created to encourage the trade of particular products. 
E) Items purchased in different countries cannot have different tariffs if the items are identical.

Question 10

Which of the following is likely to be a reason for some U.S.companies to bring their outsourced production processes back to the United States?

Accepted Answer

A) Increasing labor unionization in the United States 
B) Increased government regulation of business in the United States 
C) Increasingly strict enforcement of intellectual property rights in Asian countries 
D) High cost of transporting products to the home country 
E) Increase in labor turnover rates in the United States 
A) Increasing labor unionization in the United States 
B) Increased government regulation of business in the United States 
C) Increasingly strict enforcement of intellectual property rights in Asian countries 
D) High cost of transporting products to the home country 
E) Increase in labor turnover rates in the United States

Question 11

Which of the following is one of the most common reasons for setting quotas or tariffs?

Accepted Answer

A) To increase licensing 
B) To increase sales 
C) To relax embargoes 
D) To prohibit dumping 
E) To encourage franchising 
A) To increase licensing 
B) To increase sales 
C) To relax embargoes 
D) To prohibit dumping 
E) To encourage franchising

Question 12

While offering its usual menu,McDonald's in Vietnam is specifically adapting its menu because:

Accepted Answer

A) Vietnamese people do not like hamburgers. 
B) all Vietnamese people are vegetarians. 
C) Vietnamese people prefer a low-fat diet. 
D) it recognizes that Vietnamese consumers have their own preferences. 
E) McDonald's had a bad reputation before opening franchises in Vietnam. 
A) Vietnamese people do not like hamburgers. 
B) all Vietnamese people are vegetarians. 
C) Vietnamese people prefer a low-fat diet. 
D) it recognizes that Vietnamese consumers have their own preferences. 
E) McDonald's had a bad reputation before opening franchises in Vietnam.

Question 13

_____ can be best defined as the act of a country or business selling products at less than what it costs to produce them.

Accepted Answer

A) Franchising 
B) Monopolizing 
C) Outsourcing 
D) Offshoring 
E) Dumping 
A) Franchising 
B) Monopolizing 
C) Outsourcing 
D) Offshoring 
E) Dumping

Question 14

Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Accepted Answer

A) True 
 B)False

Question 15

Which is the true statement about managing the challenges of global business?

Accepted Answer

A) The network of CIBERs consist of a wide variety of US firms,especially for small and medium-sized firms. 
B) The network of CIBERs can provide small-sized firms knowledge of the internationalization process. 
C) The Commercial Service conducts its work through leading business schools in the United States. 
D) More and more companies are moving from this global strategy to a multinational strategy. 
E) Companies doing business internationally have traditionally used a standardized strategy. 
A) The network of CIBERs consist of a wide variety of US firms,especially for small and medium-sized firms. 
B) The network of CIBERs can provide small-sized firms knowledge of the internationalization process. 
C) The Commercial Service conducts its work through leading business schools in the United States. 
D) More and more companies are moving from this global strategy to a multinational strategy. 
E) Companies doing business internationally have traditionally used a standardized strategy.

Question 16

Absolute advantage exists when a country is the only source of an item.

Accepted Answer

A) True 
 B)False

Question 17

The U.S.set up maquiladoras in China.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?

Accepted Answer

A) General Agreement on Tariffs and Trade (GATT) 
B) Asia-Pacific Economic Cooperation (APE
C)  
C) North American Free Trade Agreement (NAFT
A)  
D) European Union (EU) 
E) Association of Southeast Asian Nations (ASEAN) 
A) General Agreement on Tariffs and Trade (GATT) 
B) Asia-Pacific Economic Cooperation (APE
C)  
C) North American Free Trade Agreement (NAFT
A)  
D) European Union (EU) 
E) Association of Southeast Asian Nations (ASEAN)

Question 19

A negative balance of trade exists when a country:

Accepted Answer

A) imports more than it exports. 
B) exports more than it imports. 
C) has more assets than debt liabilities. 
D) spends more than it saves. 
E) saves more than it spends. 
A) imports more than it exports. 
B) exports more than it imports. 
C) has more assets than debt liabilities. 
D) spends more than it saves. 
E) saves more than it spends.

Question 20

A favorable balance of trade exists when a country:

Accepted Answer

A) imports more than it exports. 
B) exports more than it imports. 
C) has more debt liabilities than assets. 
D) spends more than it saves. 
E) saves more than it spends. 
A) imports more than it exports. 
B) exports more than it imports. 
C) has more debt liabilities than assets. 
D) spends more than it saves. 
E) saves more than it spends.

Even when products are standardized,advertising often has to be modified to adapt to local cultures.

The _____ is the closest thing the world has to an international central bank.

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

Because of an unfavorable political situation between the countries,the country of Thetasia has placed a government order to prohibit the trade of private vehicles with the country of Calibria.Thetasia has maintained a(n)_____ with Calibria.

On which of the following grounds are multinational corporations (MNCs)often criticized by antiglobalization activists?

The difference between the flow of money into and out of a country is called its _____.

Choose the international organization based in Geneva,Switzerland,that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT),which deals with the rules of trade between nations.

Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits.This exemplifies a(n):

Which is the correct statement regarding tariffs and trade restrictions?

Which of the following is likely to be a reason for some U.S.companies to bring their outsourced production processes back to the United States?

Which of the following is one of the most common reasons for setting quotas or tariffs?

While offering its usual menu,McDonald's in Vietnam is specifically adapting its menu because:

_____ can be best defined as the act of a country or business selling products at less than what it costs to produce them.

Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Which is the true statement about managing the challenges of global business?

Absolute advantage exists when a country is the only source of an item.

The U.S.set up maquiladoras in China.

Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?

A negative balance of trade exists when a country:

A favorable balance of trade exists when a country:

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

Even when products are standardized,advertising often has to be modified to adapt to local cultures.

The _____ is the closest thing the world has to an international central bank.

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

Because of an unfavorable political situation between the countries,the country of Thetasia has placed a government order to prohibit the trade of private vehicles with the country of Calibria.Thetasia has maintained a(n)_____ with Calibria.

On which of the following grounds are multinational corporations (MNCs)often criticized by antiglobalization activists?

The difference between the flow of money into and out of a country is called its _____.

Choose the international organization based in Geneva,Switzerland,that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT),which deals with the rules of trade between nations.

Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits.This exemplifies a(n):

Which is the correct statement regarding tariffs and trade restrictions?

Which of the following is likely to be a reason for some U.S.companies to bring their outsourced production processes back to the United States?

Which of the following is one of the most common reasons for setting quotas or tariffs?

While offering its usual menu,McDonald's in Vietnam is specifically adapting its menu because:

_____ can be best defined as the act of a country or business selling products at less than what it costs to produce them.

Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Which is the true statement about managing the challenges of global business?

Absolute advantage exists when a country is the only source of an item.

The U.S.set up maquiladoras in China.

Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?

A negative balance of trade exists when a country:

A favorable balance of trade exists when a country:

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