Question 1

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain the terms balance of trade, trade deficit, and trade surplus in the context of the United States.

Accepted Answer

A nation's balance of trade is the difference in value between its exports and imports. Because the United States imports more products than it exports, it has a negative balance of trade, or trade deficit. The trade deficit fluctuates according to such factors as the health of the United States and other economies, productivity, perceived quality, and exchange rates. Trade deficits are harmful because they can mean the failure of businesses, the loss of jobs, and a lowered standard of living. When a nation exports more goods than it imports, it has a favorable balance of trade, or trade surplus. Until about 1970, the United States had a trade surplus due to an abundance of natural resources and the relative efficiency of its manufacturing systems.

Question 3

An American company that manufactures coffee makers has a foreign firm assemble the water reservoir tanks for the machines but the final product carries the name of the American firm. This is an example of

Accepted Answer

A)  contract manufacturing. 
B)  licensing. 
C)  direct investment. 
D)  exporting. 
E)  importing. 
A)  contract manufacturing. 
B)  licensing. 
C)  direct investment. 
D)  exporting. 
E)  importing. A

Question 4

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has 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.

Question 5

Which statement is true about CIBERs?

Accepted Answer

A)  The network of CIBERs consists of a wide variety of U.S. firms, especially for small and medium-sized firms. 
B)  The network of CIBERs can provide small-sized firms knowledge of the internationalization process. 
C)  CIBERs operate via the Chambers of Commerce of most major cities. 
D)  CIBERs are funded by local businesses with an interest in understanding internationalization processes. 
E)  CIBERs helps small-sized firms streamline domestic processes. 
A)  The network of CIBERs consists of a wide variety of U.S. firms, especially for small and medium-sized firms. 
B)  The network of CIBERs can provide small-sized firms knowledge of the internationalization process. 
C)  CIBERs operate via the Chambers of Commerce of most major cities. 
D)  CIBERs are funded by local businesses with an interest in understanding internationalization processes. 
E)  CIBERs helps small-sized firms streamline domestic processes.

Question 6

What is the primary purpose of a protective tariff?

Accepted Answer

A)  to allow more expensive domestic goods to compete with foreign ones 
B)  to completely ban certain goods from entering a country 
C)  to limit the number of products in a certain category from entering a country 
D)  to standardize the number of items that can be brought into a country duty free 
E)  to makeup for variances in currency exchange rates. 
A)  to allow more expensive domestic goods to compete with foreign ones 
B)  to completely ban certain goods from entering a country 
C)  to limit the number of products in a certain category from entering a country 
D)  to standardize the number of items that can be brought into a country duty free 
E)  to makeup for variances in currency exchange rates.

Question 7

Describe NAFTA as a trade agreement. What is its purpose? What has been advantageous about the agreement and what are its controversies?

Accepted Answer

The North American Free Trade Agreement

Question 8

If Thailand wants to limit the amount of sugar that the United States imports into its country, it would do so by imposing a(n)

Accepted Answer

A)  quota. 
B)  value-added tax. 
C)  export tariff. 
D)  embargo. 
E)  subsidy. 
A)  quota. 
B)  value-added tax. 
C)  export tariff. 
D)  embargo. 
E)  subsidy.

Question 9

Which statement about the General Agreement on Tariffs and Trade (GATT) is true?

Accepted Answer

A)  More than 100 nations abided by its rules. 
B)  It was originally signed by 30 nations in 1947. 
C)  It sponsored rounds of negotiations aimed at increasing trade restrictions. 
D)  The Uruguay Round promoted dumping. 
E)  The most recent round was the Paraguay Round (2001-2005). 
A)  More than 100 nations abided by its rules. 
B)  It was originally signed by 30 nations in 1947. 
C)  It sponsored rounds of negotiations aimed at increasing trade restrictions. 
D)  The Uruguay Round promoted dumping. 
E)  The most recent round was the Paraguay Round (2001-2005).

Question 10

Describe how economic barriers such as economic development, infrastructure, exchange rates, and devaluation affect international trade.

Accepted Answer

When looking at doing business in anothe

Question 11

Fit Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture its fasteners. In doing so, the company is engaged in exporting.

Accepted Answer

A) True 
 B)False

Question 12

An American firm decides to build another manufacturing plant in Poland to handle the demand for its products in that country. This is an example of

Accepted Answer

A)  a strategic alliance. 
B)  a direct investment. 
C)  a joint venture. 
D)  licensing. 
E)  exporting. 
A)  a strategic alliance. 
B)  a direct investment. 
C)  a joint venture. 
D)  licensing. 
E)  exporting.

Question 13

The Asia-Pacific Economic Cooperation (APEC) is a trade agreement between Asian countries and does not include the United States.

Accepted Answer

A) True 
 B)False

Question 14

A catastrophic flood crippled a country's government. In an effort to help local businesses rebuild, the government forced foreign businesses out of the country. This is an example of a(n) ________ barrier to trade.

Accepted Answer

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

Question 15

________ involves standardizing products, and their promotion and distribution if possible, for the whole world, as if it were a single entity.

Accepted Answer

A)  Countertrading 
B)  Offshoring 
C)  Licensing 
D)  Dumping 
E)  Globalization 
A)  Countertrading 
B)  Offshoring 
C)  Licensing 
D)  Dumping 
E)  Globalization

Question 16

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States 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 17

Many U.S. companies have taken advantage of Mexico's low labor costs and proximity to the United States to set up maquiladoras.

Accepted Answer

A) True 
 B)False

Question 18

A U.S. firm is considering doing business in a foreign country. What economic factor should the business consider regarding the country in which it will conduct its business?

Accepted Answer

A)  whether the country is part of a cartel 
B)  any tariffs the country might impose 
C)  the political climate of the country 
D)  cultural differences between the two countries 
E)  the infrastructure of the country 
A)  whether the country is part of a cartel 
B)  any tariffs the country might impose 
C)  the political climate of the country 
D)  cultural differences between the two countries 
E)  the infrastructure of the country

Question 19

At the conclusion of a business meeting in Brazil, David gave the A-OK sign to the people in the room. This hand gesture in America means OK, however, the Brazilians were embarrassed because in their culture the gesture is perceived as rude. This situation exemplifies how even simple differences in ________ can cause misunderstandings in international relationships.

Accepted Answer

A)  laws 
B)  family roles 
C)  body language 
D)  gender 
E)  written language 
A)  laws 
B)  family roles 
C)  body language 
D)  gender 
E)  written language

Question 20

The General Agreement on Tariffs and Trade (GATT) provided a forum for tariff negotiations and a place where international trade problems could be resolved.

Accepted Answer

A) True 
 B)False

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.

Explain the terms balance of trade, trade deficit, and trade surplus in the context of the United States.

An American company that manufactures coffee makers has a foreign firm assemble the water reservoir tanks for the machines but the final product carries the name of the American firm. This is an example of

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has a(n)

Which statement is true about CIBERs?

What is the primary purpose of a protective tariff?

Describe NAFTA as a trade agreement. What is its purpose? What has been advantageous about the agreement and what are its controversies?

If Thailand wants to limit the amount of sugar that the United States imports into its country, it would do so by imposing a(n)

Which statement about the General Agreement on Tariffs and Trade (GATT) is true?

Describe how economic barriers such as economic development, infrastructure, exchange rates, and devaluation affect international trade.

Fit Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture its fasteners. In doing so, the company is engaged in exporting.

An American firm decides to build another manufacturing plant in Poland to handle the demand for its products in that country. This is an example of

The Asia-Pacific Economic Cooperation (APEC) is a trade agreement between Asian countries and does not include the United States.

A catastrophic flood crippled a country's government. In an effort to help local businesses rebuild, the government forced foreign businesses out of the country. This is an example of a(n) ________ barrier to trade.

________ involves standardizing products, and their promotion and distribution if possible, for the whole world, as if it were a single entity.

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States has a(n)

Many U.S. companies have taken advantage of Mexico's low labor costs and proximity to the United States to set up maquiladoras.

A U.S. firm is considering doing business in a foreign country. What economic factor should the business consider regarding the country in which it will conduct its business?

The General Agreement on Tariffs and Trade (GATT) provided a forum for tariff negotiations and a place where international trade problems could be resolved.

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 Operations and Supply Chains

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

Personal Financial Planning and Legal and Regulatory Environment

Appendix A: Guidelines for the Development of the Business Plan

Appendix B: Personal Career Plan

Appendix C: Risk: The Basics of Risk Management

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Exam 3: Business in a Borderless World

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.

Explain the terms balance of trade, trade deficit, and trade surplus in the context of the United States.

An American company that manufactures coffee makers has a foreign firm assemble the water reservoir tanks for the machines but the final product carries the name of the American firm. This is an example of

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has a(n)

Which statement is true about CIBERs?

What is the primary purpose of a protective tariff?

Describe NAFTA as a trade agreement. What is its purpose? What has been advantageous about the agreement and what are its controversies?

If Thailand wants to limit the amount of sugar that the United States imports into its country, it would do so by imposing a(n)

Which statement about the General Agreement on Tariffs and Trade (GATT) is true?

Describe how economic barriers such as economic development, infrastructure, exchange rates, and devaluation affect international trade.

Fit Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture its fasteners. In doing so, the company is engaged in exporting.

An American firm decides to build another manufacturing plant in Poland to handle the demand for its products in that country. This is an example of

The Asia-Pacific Economic Cooperation (APEC) is a trade agreement between Asian countries and does not include the United States.

A catastrophic flood crippled a country's government. In an effort to help local businesses rebuild, the government forced foreign businesses out of the country. This is an example of a(n) ________ barrier to trade.

________ involves standardizing products, and their promotion and distribution if possible, for the whole world, as if it were a single entity.

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States has a(n)

Many U.S. companies have taken advantage of Mexico's low labor costs and proximity to the United States to set up maquiladoras.

A U.S. firm is considering doing business in a foreign country. What economic factor should the business consider regarding the country in which it will conduct its business?

The General Agreement on Tariffs and Trade (GATT) provided a forum for tariff negotiations and a place where international trade problems could be resolved.

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 Operations and Supply Chains

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

Personal Financial Planning and Legal and Regulatory Environment

Appendix A: Guidelines for the Development of the Business Plan

Appendix B: Personal Career Plan

Appendix C: Risk: The Basics of Risk Management

Filters