Question 1

Describe the types of tariffs that are imposed on products and the reasons for their use.

Accepted Answer

Tariffs and other trade restrictions are

Question 2

Explain why a company may opt for a joint venture or a strategic alliance.

Accepted Answer

When a company lacks sufficient resource

Question 3

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Accepted Answer

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

Question 4

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Accepted Answer

A)  It focuses on large businesses. 
B)  It is a local business solutions unit. 
C)  It offers U.S. firms a unique global network. 
D)  It offers U.S. firms practical knowledge of national markets and industries. 
E)  It doesn't use information technology. 
A)  It focuses on large businesses. 
B)  It is a local business solutions unit. 
C)  It offers U.S. firms a unique global network. 
D)  It offers U.S. firms practical knowledge of national markets and industries. 
E)  It doesn't use information technology.

Question 5

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Accepted Answer

A)  space 
B)  time 
C)  language 
D)  ethics 
E)  respect 
A)  space 
B)  time 
C)  language 
D)  ethics 
E)  respect

Question 6

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Accepted Answer

A)  export agency. 
B)  multinational corporation. 
C)  strategic alliance. 
D)  joint venture. 
E)  trading company. 
A)  export agency. 
B)  multinational corporation. 
C)  strategic alliance. 
D)  joint venture. 
E)  trading company.

Question 7

Which statement about less-developed countries (LDCs) is true?

Accepted Answer

A)  Almost all countries in Europe are LDCs. 
B)  In LDCs, consumers tend to purchase more nonessential products. 
C)  LDCs are characterized by solid infrastructures. 
D)  LDCs represent a potentially huge and profitable market for many businesses. 
E)  LDCs are characterized by high per-capita income. 
A)  Almost all countries in Europe are LDCs. 
B)  In LDCs, consumers tend to purchase more nonessential products. 
C)  LDCs are characterized by solid infrastructures. 
D)  LDCs represent a potentially huge and profitable market for many businesses. 
E)  LDCs are characterized by high per-capita income.

Question 8

The World Trade Organization agreements were rejected by most of the world's trading nations.

Accepted Answer

A) True 
 B)False

Question 9

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

Accepted Answer

A) True 
 B)False

Question 10

A country that imposes an embargo in response to some political event is attempting to

Accepted Answer

A)  restrict trade with other nations. 
B)  increase trade with other nations. 
C)  encourage dumping into the country. 
D)  increase the amount of currency that can be brought into the country. 
E)  increase the potential for countries to engage in dumping. 
A)  restrict trade with other nations. 
B)  increase trade with other nations. 
C)  encourage dumping into the country. 
D)  increase the amount of currency that can be brought into the country. 
E)  increase the potential for countries to engage in dumping.

Question 11

Why has outsourcing become a controversial practice in the United States?

Accepted Answer

A)  Outsourcing takes away jobs that could be accomplished by workers in the United States. 
B)  Outsourcing takes away a company's ability to develop a comparative advantage. 
C)  Outsourcing has made U.S.-based products significantly more expensive. 
D)  Outsourcing increases the cost of labor and supplies needed to get the job done. 
E)  The outsourced products end up having sub-standard quality because their producers lack expertise. 
A)  Outsourcing takes away jobs that could be accomplished by workers in the United States. 
B)  Outsourcing takes away a company's ability to develop a comparative advantage. 
C)  Outsourcing has made U.S.-based products significantly more expensive. 
D)  Outsourcing increases the cost of labor and supplies needed to get the job done. 
E)  The outsourced products end up having sub-standard quality because their producers lack expertise.

Question 12

What type of company benefits the most from licensing?

Accepted Answer

A)  a large manufacturer that wants to launch its own brand internationally 
B)  a small manufacturer that wants to launch a well-known brand internationally 
C)  a small manufacturer that wants to launch its own brand internationally 
D)  a large manufacturer that wants to transform a less-known brand into a well-known brand internationally 
E)  a small manufacturer that wants to launch a well-known brand locally 
A)  a large manufacturer that wants to launch its own brand internationally 
B)  a small manufacturer that wants to launch a well-known brand internationally 
C)  a small manufacturer that wants to launch its own brand internationally 
D)  a large manufacturer that wants to transform a less-known brand into a well-known brand internationally 
E)  a small manufacturer that wants to launch a well-known brand locally

Question 13

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

Accepted Answer

A)  absolute advantage. 
B)  strategic alliance. 
C)  infrastructure. 
D)  exchange rate. 
E)  exchange controls. 
A)  absolute advantage. 
B)  strategic alliance. 
C)  infrastructure. 
D)  exchange rate. 
E)  exchange controls.

Question 14

What is true of the World Bank?

Accepted Answer

A)  It funds the member nations of the NAFTA and EU. 
B)  It provides aid to industrialized nations in times of financial crisis. 
C)  It acts as a global police force. 
D)  It finances construction projects in underdeveloped and developing countries. 
E)  It helps developed nations obtain money to start businesses. 
A)  It funds the member nations of the NAFTA and EU. 
B)  It provides aid to industrialized nations in times of financial crisis. 
C)  It acts as a global police force. 
D)  It finances construction projects in underdeveloped and developing countries. 
E)  It helps developed nations obtain money to start businesses.

Question 15

All of the following are examples of multinational strategy EXCEPT

Accepted Answer

A)  in Vietnam, McDonald's offered its traditional menu items as well as McPork sandwiches targeted toward Vietnam consumers. 
B)  soap and detergent manufacturers have adapted their products to local water conditions, washing equipment, and washing habits. 
C)  Colgate-Palmolive Co. has developed an inexpensive, plastic, hand-powered washing machine for households without electricity. 
D)  American clothing companies use social media sites to connect with global customers. 
E)  companies have modified their advertising to adapt to language and cultural differences. 
A)  in Vietnam, McDonald's offered its traditional menu items as well as McPork sandwiches targeted toward Vietnam consumers. 
B)  soap and detergent manufacturers have adapted their products to local water conditions, washing equipment, and washing habits. 
C)  Colgate-Palmolive Co. has developed an inexpensive, plastic, hand-powered washing machine for households without electricity. 
D)  American clothing companies use social media sites to connect with global customers. 
E)  companies have modified their advertising to adapt to language and cultural differences.

Question 16

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Accepted Answer

A)  the United States. 
B)  Cuba. 
C)  Iran. 
D)  Syria. 
E)  North Korea. 
A)  the United States. 
B)  Cuba. 
C)  Iran. 
D)  Syria. 
E)  North Korea.

Question 17

Which situation encourages the sale of domestic goods and tourism?

Accepted Answer

A)  inflation 
B)  dumping 
C)  outsourcing 
D)  devaluation 
E)  tariffs 
A)  inflation 
B)  dumping 
C)  outsourcing 
D)  devaluation 
E)  tariffs

Question 18

What is true regarding trading companies?

Accepted Answer

A)  They buy and sell goods in only one country. 
B)  They handle all activities required to move products from one country to another. 
C)  They rarely offer warehousing facilities. 
D)  They are very different from export agents. 
E)  They refrain from handling consulting activities. 
A)  They buy and sell goods in only one country. 
B)  They handle all activities required to move products from one country to another. 
C)  They rarely offer warehousing facilities. 
D)  They are very different from export agents. 
E)  They refrain from handling consulting activities.

Question 19

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

Accepted Answer

A) True 
 B)False

Question 20

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of

Accepted Answer

A)  supply and demand. 
B)  absolute advantage. 
C)  a monopoly. 
D)  exchange controls. 
E)  comparative advantage. 
A)  supply and demand. 
B)  absolute advantage. 
C)  a monopoly. 
D)  exchange controls. 
E)  comparative advantage.

Describe the types of tariffs that are imposed on products and the reasons for their use.

Explain why a company may opt for a joint venture or a strategic alliance.

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Which statement about less-developed countries (LDCs) is true?

The World Trade Organization agreements were rejected by most of the world's trading nations.

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

A country that imposes an embargo in response to some political event is attempting to

Why has outsourcing become a controversial practice in the United States?

What type of company benefits the most from licensing?

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

What is true of the World Bank?

All of the following are examples of multinational strategy EXCEPT

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Which situation encourages the sale of domestic goods and tourism?

What is true regarding trading companies?

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

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

Describe the types of tariffs that are imposed on products and the reasons for their use.

Explain why a company may opt for a joint venture or a strategic alliance.

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Which statement about less-developed countries (LDCs) is true?

The World Trade Organization agreements were rejected by most of the world's trading nations.

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

A country that imposes an embargo in response to some political event is attempting to

Why has outsourcing become a controversial practice in the United States?

What type of company benefits the most from licensing?

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

What is true of the World Bank?

All of the following are examples of multinational strategy EXCEPT

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Which situation encourages the sale of domestic goods and tourism?

What is true regarding trading companies?

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

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