Question 1

Which of the following is a true statement about the European Union?

Accepted Answer

A) It is trying to create opportunities to trade with South America. 
B) It is working toward the creation of a standardized currency. 
C) It is striving to impose customs checks within Europe. 
D) It is working toward the abolition of import duties. 
E) It is trying to increase value-added taxes. 
A) It is trying to create opportunities to trade with South America. 
B) It is working toward the creation of a standardized currency. 
C) It is striving to impose customs checks within Europe. 
D) It is working toward the abolition of import duties. 
E) It is trying to increase value-added taxes.

Question 2

Globalization involves standardizing products for the whole world as if it were a single entity.

Accepted Answer

A) True 
 B)False

Question 3

Many countries do not permit foreign companies to purchase and operate facilities in their country.A company that wants to do business in such a country may share the business costs with a firm from the host country by forming a:

Accepted Answer

A) direct investment. 
B) greenfield venture. 
C) corporation. 
D) joint venture. 
E) sole proprietorship. 
A) direct investment. 
B) greenfield venture. 
C) corporation. 
D) joint venture. 
E) sole proprietorship.

Question 4

Snowland and Pledza are neighboring countries.Pledza imports more products than it exports.Over the last decade,Pledza imports from Snowland have been rapidly increasing but not fast enough to offset the exports to Snowland.As a result,Pledza has a(n)_____.

Accepted Answer

A) domestic gain 
B) trade surplus 
C) trade deficit 
D) absolute advantage 
E) comparative advantage 
A) domestic gain 
B) trade surplus 
C) trade deficit 
D) absolute advantage 
E) comparative advantage

Question 5

Which of the following is an advantage of using an export agent?

Accepted Answer

A) The firm does not have to deal with a middleman. 
B) The firm is not responsible for the procurement and storage of raw materials. 
C) The firm does not have to deal with the red tape of international business. 
D) The firm does not need to worry about product pricing. 
E) The firm does not need to invest in research and development. 
A) The firm does not have to deal with a middleman. 
B) The firm is not responsible for the procurement and storage of raw materials. 
C) The firm does not have to deal with the red tape of international business. 
D) The firm does not need to worry about product pricing. 
E) The firm does not need to invest in research and development.

Question 6

In which of the following regions is forming a circle with one's fingers to signify the "O.K." sign considered rude or unacceptable?

Accepted Answer

A) India 
B) Mexico 
C) Germany 
D) Great Britain 
E) The United States 
A) India 
B) Mexico 
C) Germany 
D) Great Britain 
E) The United States

Question 7

Which of the following is formally called the International Bank for Reconstruction and Development?

Accepted Answer

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

Question 8

When a country devalues its currency,it causes an increase in:

Accepted Answer

A) its imports. 
B) its exports. 
C) the sale of international goods in the domestic market. 
D) the sale of international services in the domestic market. 
E) the cost of American goods abroad. 
A) its imports. 
B) its exports. 
C) the sale of international goods in the domestic market. 
D) the sale of international services in the domestic market. 
E) the cost of American goods abroad.

Question 9

_____ can be best defined as the sharing of the costs and operations of a business between a foreign company and a local partner.

Accepted Answer

A) Exporting 
B) Licensing 
C) A direct investment 
D) Contract manufacturing 
E) A joint venture 
A) Exporting 
B) Licensing 
C) A direct investment 
D) Contract manufacturing 
E) A joint venture

Question 10

A common reason for establishing quotas or tariffs is to encourage dumping.

Accepted Answer

A) True 
 B)False

Question 11

Find out the correct statement about less-developed countries (LDCs).

Accepted Answer

A) Their consumers are more likely to purchase nonessential products. 
B) They are characterized by low per-capita income. 
C) Although they are called less developed,they are economically advanced. 
D) The rising middle class has caused many consumers in India to opt for public transport. 
E) Countries like Japan,Great Britain,and Canada fall into this category. 
A) Their consumers are more likely to purchase nonessential products. 
B) They are characterized by low per-capita income. 
C) Although they are called less developed,they are economically advanced. 
D) The rising middle class has caused many consumers in India to opt for public transport. 
E) Countries like Japan,Great Britain,and Canada fall into this category.

Question 12

Identify the statement that is true about the Association of Southeast Asian Nations (ASEAN).

Accepted Answer

A) It will not have fully free labor flows between member-nations. 
B) In 1993,it began to increase tariffs among countries. 
C) It will have a common currency. 
D) It has a 21-member alliance. 
E) It was established in 1989. 
A) It will not have fully free labor flows between member-nations. 
B) In 1993,it began to increase tariffs among countries. 
C) It will have a common currency. 
D) It has a 21-member alliance. 
E) It was established in 1989.

Question 13

Which of the following is most likely to cause a trade deficit?

Accepted Answer

A) When a country invests more on producing domestic goods than services 
B) When a country focuses on increasing the domestic output of one sector over another 
C) When a country focuses on long-term benefits than short-term gains 
D) When a country reduces taxes on imports 
E) When a country increases export of products and services 
A) When a country invests more on producing domestic goods than services 
B) When a country focuses on increasing the domestic output of one sector over another 
C) When a country focuses on long-term benefits than short-term gains 
D) When a country reduces taxes on imports 
E) When a country increases export of products and services

Question 14

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

Accepted Answer

A) Foreign Credit Insurance Association 
B) Exim Bank 
C) World Bank 
D) World Trade Organization 
E) International Monetary Fund 
A) Foreign Credit Insurance Association 
B) Exim Bank 
C) World Bank 
D) World Trade Organization 
E) International Monetary Fund

Question 15

Which of the following countries was a member nation of Asia-Pacific Economic Cooperation (APEC)when it was established in 1989?

Accepted Answer

A) Vietnam 
B) Japan 
C) China 
D) Hong Kong 
E) Chile 
A) Vietnam 
B) Japan 
C) China 
D) Hong Kong 
E) Chile

Question 16

_____ can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency.

Accepted Answer

A) Exchange rate 
B) National rate 
C) Exchange ratio 
D) Value ratio 
E) Currency ratio 
A) Exchange rate 
B) National rate 
C) Exchange ratio 
D) Value ratio 
E) Currency ratio

Question 17

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

Accepted Answer

A) True 
 B)False

Question 18

The World Trade Organization agreements are the optional ground rules for international commerce.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a true statement about barriers to international business?

Accepted Answer

A) Devaluation discourages the sale of domestic goods and tourism. 
B) Revaluations occur daily because of the daily changes in exchange rates. 
C) Legal and ethical requirements for successful business are decreasing globally. 
D) Many of the legal rights that Americans take for granted do not exist in other countries. 
E) The Webb-Pomerene Export Trade Act of 1918 allows selected U.S.firms to limit free trade within the United States. 
A) Devaluation discourages the sale of domestic goods and tourism. 
B) Revaluations occur daily because of the daily changes in exchange rates. 
C) Legal and ethical requirements for successful business are decreasing globally. 
D) Many of the legal rights that Americans take for granted do not exist in other countries. 
E) The Webb-Pomerene Export Trade Act of 1918 allows selected U.S.firms to limit free trade within the United States.

Question 20

Sociocultural differences,such as variations in body language and personal space,usually have almost negligible impact on international business.

Accepted Answer

A) True 
 B)False

Which of the following is a true statement about the European Union?

Globalization involves standardizing products for the whole world as if it were a single entity.

Many countries do not permit foreign companies to purchase and operate facilities in their country.A company that wants to do business in such a country may share the business costs with a firm from the host country by forming a:

Snowland and Pledza are neighboring countries.Pledza imports more products than it exports.Over the last decade,Pledza imports from Snowland have been rapidly increasing but not fast enough to offset the exports to Snowland.As a result,Pledza has a(n)_____.

Which of the following is an advantage of using an export agent?

In which of the following regions is forming a circle with one's fingers to signify the "O.K." sign considered rude or unacceptable?

Which of the following is formally called the International Bank for Reconstruction and Development?

When a country devalues its currency,it causes an increase in:

_____ can be best defined as the sharing of the costs and operations of a business between a foreign company and a local partner.

A common reason for establishing quotas or tariffs is to encourage dumping.

Find out the correct statement about less-developed countries (LDCs).

Identify the statement that is true about the Association of Southeast Asian Nations (ASEAN).

Which of the following is most likely to cause a trade deficit?

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

Which of the following countries was a member nation of Asia-Pacific Economic Cooperation (APEC)when it was established in 1989?

_____ can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency.

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

The World Trade Organization agreements are the optional ground rules for international commerce.

Which of the following is a true statement about barriers to international business?

Sociocultural differences,such as variations in body language and personal space,usually have almost negligible impact on international business.

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

Which of the following is a true statement about the European Union?

Globalization involves standardizing products for the whole world as if it were a single entity.

Many countries do not permit foreign companies to purchase and operate facilities in their country.A company that wants to do business in such a country may share the business costs with a firm from the host country by forming a:

Snowland and Pledza are neighboring countries.Pledza imports more products than it exports.Over the last decade,Pledza imports from Snowland have been rapidly increasing but not fast enough to offset the exports to Snowland.As a result,Pledza has a(n)_____.

Which of the following is an advantage of using an export agent?

In which of the following regions is forming a circle with one's fingers to signify the "O.K." sign considered rude or unacceptable?

Which of the following is formally called the International Bank for Reconstruction and Development?

When a country devalues its currency,it causes an increase in:

_____ can be best defined as the sharing of the costs and operations of a business between a foreign company and a local partner.

A common reason for establishing quotas or tariffs is to encourage dumping.

Find out the correct statement about less-developed countries (LDCs).

Identify the statement that is true about the Association of Southeast Asian Nations (ASEAN).

Which of the following is most likely to cause a trade deficit?

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

Which of the following countries was a member nation of Asia-Pacific Economic Cooperation (APEC)when it was established in 1989?

_____ can be best defined as the ratio at which one nation's currency can be exchanged for another nation's currency.

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

The World Trade Organization agreements are the optional ground rules for international commerce.

Which of the following is a true statement about barriers to international business?

Sociocultural differences,such as variations in body language and personal space,usually have almost negligible impact on international business.

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