Question 1

A country's balance of trade is the total value of its imports less the total value of its exports.

Accepted Answer

A) True 
 B)False  False

Question 2

Drobex Technologies is a manufacturer of electronic home appliances.The company has operations in 17 countries.The company operates as an independent unit in each of these countries and the head of operations in each unit makes decisions themselves.Drobex is following a(n)________ strategy.

Accepted Answer

A)  transnational 
B)  global 
C)  multidomestic 
D)  franchising 
E)  integrated marketing 
A)  transnational 
B)  global 
C)  multidomestic 
D)  franchising 
E)  integrated marketing C

Question 3

Describe the importance of the World Trade Organization.

Accepted Answer

The World Trade Organization (WTO)is a permanent forum for negotiating,implementing,and monitoring international trade procedures and for mediating trade disputes among its more than 150 member countries.The organization's work is guided by five principles:preventing discriminatory policies that favor some trading partners over others or a country's own products over others',reducing trade barriers between countries,making trade policies more predictable and less arbitrary,discouraging unfair practices,and helping less developed countries benefit from international trade.

Question 4

You are the strategist of a firm that manufactures premium cars.The company is planning to enter China as part of its expansion strategy.Conduct a secondary study to identify the various trade barriers that the company will face in China.

Accepted Answer

The students should conduct a study to i

Question 5

Trade that takes place without governmental interferences is known as ________.

Accepted Answer

A)  subsidized trade 
B)  protected trade 
C)  illegal trade 
D)  free trade 
E)  moderated trade 
A)  subsidized trade 
B)  protected trade 
C)  illegal trade 
D)  free trade 
E)  moderated trade

Question 6

The legal systems in the United States and the United Kingdom are based on civil law.

Accepted Answer

A) True 
 B)False

Question 7

What is a trading bloc? Explain the working of any one trading bloc.

Accepted Answer

Trading blocs,or common markets,are regi

Question 8

A country has a trade deficit when the ________.

Accepted Answer

A)  exchange rate of its currency with other currencies is fixed 
B)  exchange rate of its currency with other currencies is variable 
C)  value of its exports exceeds the value of its imports 
D)  total flow of money into the country equals the total flow of money out of the country 
E)  value of its imports exceeds the value of its exports 
A)  exchange rate of its currency with other currencies is fixed 
B)  exchange rate of its currency with other currencies is variable 
C)  value of its exports exceeds the value of its imports 
D)  total flow of money into the country equals the total flow of money out of the country 
E)  value of its imports exceeds the value of its exports

Question 9

The North American Free Trade Agreement (NAFTA)was formed by the United States,Canada,and ________.

Accepted Answer

A)  Costa Rica 
B)  Jamaica 
C)  Cuba 
D)  Mexico 
E)  Honduras 
A)  Costa Rica 
B)  Jamaica 
C)  Cuba 
D)  Mexico 
E)  Honduras

Question 10

All U.S.companies are bound by the Foreign Corrupt Practices Act.

Accepted Answer

A) True 
 B)False

Question 11

Joint ventures are short-term partnerships between two or more companies to jointly develop,produce,or sell products.

Accepted Answer

A) True 
 B)False

Question 12

A company benefits from economies of scale when it ________.

Accepted Answer

A)  does not use centralization of production and distribution 
B)  produces goods or services in multiple locations 
C)  adopts a highly differentiated marketing strategy 
D)  engages in the production of personalized products 
E)  manufactures and distributes products in higher quantities 
A)  does not use centralization of production and distribution 
B)  produces goods or services in multiple locations 
C)  adopts a highly differentiated marketing strategy 
D)  engages in the production of personalized products 
E)  manufactures and distributes products in higher quantities

Question 13

Economies of scale are savings from not buying too much of any one thing.

Accepted Answer

A) True 
 B)False

Question 14

The exchange rate of Euro and Yen,in two consecutive years,against U.S.dollars is given below: 
$\begin{array} { | l | l | l | } 
\hline \text { Year } & 1 \text { dollar } & 1 \text { dollar } \
\text { equaled: } & \text { equaled: } \
\hline 2010 & 0.68 \text { Euro } & 81 \text { Yen } \
\hline 2011 & 0.77 \text { Euro } & 75 \text { Yen } \
\hline
\end{array}$
Which of the following is a valid conclusion that you can derive from this information?

Accepted Answer

A)  The U.S. dollar weakened against the Euro in 2011. 
B)  The U. S. dollar was stronger against the Euro in 2010. 
C)  The Euro has strengthened against the Yen in 2011. 
D)  The U.S. dollar weakened in 2011 against the Yen. 
E)  The U. S. dollar was weaker against the Yen in 2010. 
A)  The U.S. dollar weakened against the Euro in 2011. 
B)  The U. S. dollar was stronger against the Euro in 2010. 
C)  The Euro has strengthened against the Yen in 2011. 
D)  The U.S. dollar weakened in 2011 against the Yen. 
E)  The U. S. dollar was weaker against the Yen in 2010.

Question 15

Almex is a U.S.based transportation company.In order to enter the Brazilian transportation market,the company purchases one of the leading transporters in Brazil.This strategy is known as ________.

Accepted Answer

A)  operational licensing 
B)  service exporting 
C)  foreign direct investing 
D)  brand licensing 
E)  outstation franchising 
A)  operational licensing 
B)  service exporting 
C)  foreign direct investing 
D)  brand licensing 
E)  outstation franchising

Question 16

Quiznos has sold individual owners the rights to use its trademark and business system.Quiznos has opened restaurants in 21 foreign countries in this fashion.This is an example of ________.

Accepted Answer

A)  a strategic alliance 
B)  export licensing 
C)  franchising 
D)  joint venturing 
E)  a foreign direct investment 
A)  a strategic alliance 
B)  export licensing 
C)  franchising 
D)  joint venturing 
E)  a foreign direct investment

Question 17

Taxes,surcharges,or duties levied against imported goods are known as ________.

Accepted Answer

A)  import sanctions 
B)  embargoes 
C)  tariffs 
D)  import quotas 
E)  restrictive import standards 
A)  import sanctions 
B)  embargoes 
C)  tariffs 
D)  import quotas 
E)  restrictive import standards

Question 18

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

Accepted Answer

A) True 
 B)False

Question 19

The United States has banned the export of super-computers and lasers to non-allies.This is an example of a(n)________.

Accepted Answer

A)  export subsidy 
B)  export quota 
C)  tariff 
D)  embargo 
E)  restrictive import standard 
A)  export subsidy 
B)  export quota 
C)  tariff 
D)  embargo 
E)  restrictive import standard

Question 20

In the ________ strategy,a company creates highly independent operating units in each new country and gives local managers a great deal of freedom to run their operations almost as though they are independent companies.

Accepted Answer

A)  integrated marketing 
B)  transnational 
C)  global 
D)  franchising 
E)  multidomestic 
A)  integrated marketing 
B)  transnational 
C)  global 
D)  franchising 
E)  multidomestic

A country's balance of trade is the total value of its imports less the total value of its exports.

Drobex Technologies is a manufacturer of electronic home appliances.The company has operations in 17 countries.The company operates as an independent unit in each of these countries and the head of operations in each unit makes decisions themselves.Drobex is following a(n)________ strategy.

Describe the importance of the World Trade Organization.

You are the strategist of a firm that manufactures premium cars.The company is planning to enter China as part of its expansion strategy.Conduct a secondary study to identify the various trade barriers that the company will face in China.

Trade that takes place without governmental interferences is known as ________.

The legal systems in the United States and the United Kingdom are based on civil law.

What is a trading bloc? Explain the working of any one trading bloc.

A country has a trade deficit when the ________.

The North American Free Trade Agreement (NAFTA)was formed by the United States,Canada,and ________.

All U.S.companies are bound by the Foreign Corrupt Practices Act.

Joint ventures are short-term partnerships between two or more companies to jointly develop,produce,or sell products.

A company benefits from economies of scale when it ________.

Economies of scale are savings from not buying too much of any one thing.

The exchange rate of Euro and Yen,in two consecutive years,against U.S.dollars is given below: Year 1 dollar 1 dollar equaled: equaled: 2010 0.68 Euro 81 Yen 2011 0.77 Euro 75 Yen Which of the following is a valid conclusion that you can derive from this information?

Almex is a U.S.based transportation company.In order to enter the Brazilian transportation market,the company purchases one of the leading transporters in Brazil.This strategy is known as ________.

Quiznos has sold individual owners the rights to use its trademark and business system.Quiznos has opened restaurants in 21 foreign countries in this fashion.This is an example of ________.

Taxes,surcharges,or duties levied against imported goods are known as ________.

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

The United States has banned the export of super-computers and lasers to non-allies.This is an example of a(n)________.

In the ________ strategy,a company creates highly independent operating units in each new country and gives local managers a great deal of freedom to run their operations almost as though they are independent companies.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 3: The Global Marketplace

A country's balance of trade is the total value of its imports less the total value of its exports.

Drobex Technologies is a manufacturer of electronic home appliances.The company has operations in 17 countries.The company operates as an independent unit in each of these countries and the head of operations in each unit makes decisions themselves.Drobex is following a(n)________ strategy.

Describe the importance of the World Trade Organization.

You are the strategist of a firm that manufactures premium cars.The company is planning to enter China as part of its expansion strategy.Conduct a secondary study to identify the various trade barriers that the company will face in China.

Trade that takes place without governmental interferences is known as ________.

The legal systems in the United States and the United Kingdom are based on civil law.

What is a trading bloc? Explain the working of any one trading bloc.

A country has a trade deficit when the ________.

The North American Free Trade Agreement (NAFTA)was formed by the United States,Canada,and ________.

All U.S.companies are bound by the Foreign Corrupt Practices Act.

Joint ventures are short-term partnerships between two or more companies to jointly develop,produce,or sell products.

A company benefits from economies of scale when it ________.

Economies of scale are savings from not buying too much of any one thing.

The exchange rate of Euro and Yen,in two consecutive years,against U.S.dollars is given below: Year 1 dollar 1 dollar equaled: equaled: 2010 0.68 Euro 81 Yen 2011 0.77 Euro 75 Yen Which of the following is a valid conclusion that you can derive from this information?

Almex is a U.S.based transportation company.In order to enter the Brazilian transportation market,the company purchases one of the leading transporters in Brazil.This strategy is known as ________.

Quiznos has sold individual owners the rights to use its trademark and business system.Quiznos has opened restaurants in 21 foreign countries in this fashion.This is an example of ________.

Taxes,surcharges,or duties levied against imported goods are known as ________.

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

The United States has banned the export of super-computers and lasers to non-allies.This is an example of a(n)________.

In the ________ strategy,a company creates highly independent operating units in each new country and gives local managers a great deal of freedom to run their operations almost as though they are independent companies.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters