Question 1

What is an exporter?

Accepted Answer

An exporter is a bus

Question 2

________ is an example of an export of a service.

Accepted Answer

A)  An advertising agency in Montreal making a TV commercial for a company in France 
B)  Obtaining information from a foreign database 
C)  Vacations taken by Canadians in a foreign country 
D)  Purchasing a camera made in Japan 
E)  A Canadian tourist having a camera repaired in Egypt 
A)  An advertising agency in Montreal making a TV commercial for a company in France 
B)  Obtaining information from a foreign database 
C)  Vacations taken by Canadians in a foreign country 
D)  Purchasing a camera made in Japan 
E)  A Canadian tourist having a camera repaired in Egypt

Question 3

List the BRICS countries.

Accepted Answer

Brazil, Ru

Question 4

All of the following characteristics describe an independent agent except that it

Accepted Answer

A)  often sells the exporter's products. 
B)  often makes sure that customers are happy. 
C)  often represents only one firm. 
D)  often collects payments. 
E)  is a foreign individual or organization. 
A)  often sells the exporter's products. 
B)  often makes sure that customers are happy. 
C)  often represents only one firm. 
D)  often collects payments. 
E)  is a foreign individual or organization.

Question 5

Which of the following is correct with respect to the BRIC countries?

Accepted Answer

A)  Russia is the dominant country in the group. 
B)  There is very little coordination between the BRIC countries, and they do not act like a unit. 
C)  All of the BRIC countries put a heavy emphasis on exporting commodities. 
D)  India is a leading service provider. 
E)  Brazil is the most corrupt of the BRIC nations. 
A)  Russia is the dominant country in the group. 
B)  There is very little coordination between the BRIC countries, and they do not act like a unit. 
C)  All of the BRIC countries put a heavy emphasis on exporting commodities. 
D)  India is a leading service provider. 
E)  Brazil is the most corrupt of the BRIC nations.

Question 6

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally. Which of the following, if true, would strengthen this position?

Accepted Answer

A)  Contractual relationships allow an originating firm to make the most use of local talent. 
B)  Contractual relationships cannot capture unpredictable future contingencies. 
C)  Contractual relationships are often cross-culturally contentious. 
D)  Derrido would not be undertaking large-scale production or shipping operations. 
E)  Derrido is a large company with ample staff and resources at its disposal. 
A)  Contractual relationships allow an originating firm to make the most use of local talent. 
B)  Contractual relationships cannot capture unpredictable future contingencies. 
C)  Contractual relationships are often cross-culturally contentious. 
D)  Derrido would not be undertaking large-scale production or shipping operations. 
E)  Derrido is a large company with ample staff and resources at its disposal.

Question 7

Which of the following is correct with regard to the balance of trade and the balance of payments?

Accepted Answer

A)  If a country has a favourable balance of trade, it will also have a favourable balance of payments. 
B)  The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year. 
C)  A country that imports more than it exports has a favourable balance of trade. 
D)  Countries used to strive to have a favourable balance of trade, but governments no longer worry about that issue because of globalization. 
E)  Canada has generally had a favourable balance of trade during the last few decades. 
A)  If a country has a favourable balance of trade, it will also have a favourable balance of payments. 
B)  The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year. 
C)  A country that imports more than it exports has a favourable balance of trade. 
D)  Countries used to strive to have a favourable balance of trade, but governments no longer worry about that issue because of globalization. 
E)  Canada has generally had a favourable balance of trade during the last few decades.

Question 8

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market and goes on to argue that this will be advantageous to the company. Which of the following, if true, would strengthen this argument?

Accepted Answer

A)  Consumers in many countries have limited resources with which they can purchase entertainment. 
B)  Consumers in many countries are wary of what they perceive as American cultural imperialism. 
C)  Contractual agreements usually require the foreign partner to display the originating firm's brand as prominently as possible. 
D)  Contractual agreements initiated by an American company often make for contentious relationships with the foreign partner. 
E)  Foreign consumers briefly resist cultural imperialism but then quickly embrace American cultural products. 
A)  Consumers in many countries have limited resources with which they can purchase entertainment. 
B)  Consumers in many countries are wary of what they perceive as American cultural imperialism. 
C)  Contractual agreements usually require the foreign partner to display the originating firm's brand as prominently as possible. 
D)  Contractual agreements initiated by an American company often make for contentious relationships with the foreign partner. 
E)  Foreign consumers briefly resist cultural imperialism but then quickly embrace American cultural products.

Question 9

When a company sends some of its own managers overseas to conduct business in a local office, this is an example of

Accepted Answer

A)  developing a strategic alliance. 
B)  outsourcing. 
C)  licensing products. 
D)  investing directly in a foreign venture. 
E)  opening a branch office. 
A)  developing a strategic alliance. 
B)  outsourcing. 
C)  licensing products. 
D)  investing directly in a foreign venture. 
E)  opening a branch office.

Question 10

Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

Accepted Answer

A) True 
 B)False

Question 11

How will a business firm know if there is a demand for its product in another nation?

Accepted Answer

A)  The company is willing to discuss royalty fees with other international firms. 
B)  There is a positive balance of payments. 
C)  A firm cannot know if such a demand exists. 
D)  The product is very successful in the company's home nation. 
E)  Due to the successful prior entry of a competitor firm with a similar product in the international market. 
A)  The company is willing to discuss royalty fees with other international firms. 
B)  There is a positive balance of payments. 
C)  A firm cannot know if such a demand exists. 
D)  The product is very successful in the company's home nation. 
E)  Due to the successful prior entry of a competitor firm with a similar product in the international market.

Question 12

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

Accepted Answer

A)  Consumers shopping on a daily basis 
B)  A younger population 
C)  An older population 
D)  Adjusted menus, ingredients, and hours of operation 
E)  Consumers that are are shorter and slimmer than Canadian consumers 
A)  Consumers shopping on a daily basis 
B)  A younger population 
C)  An older population 
D)  Adjusted menus, ingredients, and hours of operation 
E)  Consumers that are are shorter and slimmer than Canadian consumers

Question 13

KFC's dishes in China come with a side order of rice and soy milk. This is an example of

Accepted Answer

A)  over-expansion without support for repairing the product. 
B)  adapting to customer needs. 
C)  misreading demand for the product. 
D)  overpricing caused by exchange rate changes. 
E)  a poor business environment for foreign goods. 
A)  over-expansion without support for repairing the product. 
B)  adapting to customer needs. 
C)  misreading demand for the product. 
D)  overpricing caused by exchange rate changes. 
E)  a poor business environment for foreign goods.

Question 14

Fembooks Bookstore sells books only over the Internet. It has established an excellent reputation for finding out-of-print and hard-to-find books of interest to women. The CEO of Fembooks is considering going global with the business, since it is already established on the Internet. The vice-president of Fembooks argues that they will encounter too many difficulties in taking the business global via the Internet. The president argues that the benefits would be worth the problems encountered. Which of the following statements, if true, would support the argument of the vice-president against going global?

Accepted Answer

A)  While English is the dominant language of the Internet, more local traffic would be generated by webpages in the local language. 
B)  Being a niche business, going global over the Internet would not put a huge strain on existing personnel. 
C)  Shipping books overseas could easily be handled by UPS, FedEx, or air mail. 
D)  Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually. 
E)  Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis. 
A)  While English is the dominant language of the Internet, more local traffic would be generated by webpages in the local language. 
B)  Being a niche business, going global over the Internet would not put a huge strain on existing personnel. 
C)  Shipping books overseas could easily be handled by UPS, FedEx, or air mail. 
D)  Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually. 
E)  Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis.

Question 15

According to the World Bank, ________ is considered an upper middle-income country.

Accepted Answer

A)  Singapore 
B)  Hong Kong 
C)  South Korea 
D)  Argentina 
E)  United Arab Emirates 
A)  Singapore 
B)  Hong Kong 
C)  South Korea 
D)  Argentina 
E)  United Arab Emirates

Question 16

Your television set, your shoes, even the roast lamb on your dinner table is likely to be the result of

Accepted Answer

A)  importing. 
B)  subsidies. 
C)  foreign exchange. 
D)  a trade deficit. 
E)  exporting. 
A)  importing. 
B)  subsidies. 
C)  foreign exchange. 
D)  a trade deficit. 
E)  exporting.

Question 17

What are the four steps that firms should go through when deciding whether or not to go international?

Accepted Answer

The four steps involve answering four im

Question 18

List and briefly describe the three basic barriers to international trade. Give examples of each.

Accepted Answer

The three basic barriers are: (1) social

Question 19

The rate of exchange of a nation's currency has a noticeable effect upon the competitive advantages or disadvantages of its companies.

Accepted Answer

A) True 
 B)False

Question 20

As the value of a country's currency rises

Accepted Answer

A)  domestic companies will have a harder time selling their products in foreign markets. 
B)  foreign companies will find it harder to sell their products in local markets. 
C)  imports and exports will remain relatively constant. 
D)  domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E)  all of these will happen. 
A)  domestic companies will have a harder time selling their products in foreign markets. 
B)  foreign companies will find it harder to sell their products in local markets. 
C)  imports and exports will remain relatively constant. 
D)  domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E)  all of these will happen.

What is an exporter?

________ is an example of an export of a service.

List the BRICS countries.

All of the following characteristics describe an independent agent except that it

Which of the following is correct with respect to the BRIC countries?

Which of the following is correct with regard to the balance of trade and the balance of payments?

When a company sends some of its own managers overseas to conduct business in a local office, this is an example of

Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

How will a business firm know if there is a demand for its product in another nation?

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

KFC's dishes in China come with a side order of rice and soy milk. This is an example of

According to the World Bank, ________ is considered an upper middle-income country.

Your television set, your shoes, even the roast lamb on your dinner table is likely to be the result of

What are the four steps that firms should go through when deciding whether or not to go international?

List and briefly describe the three basic barriers to international trade. Give examples of each.

The rate of exchange of a nation's currency has a noticeable effect upon the competitive advantages or disadvantages of its companies.

As the value of a country's currency rises

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 5: The Global Context of Business

What is an exporter?

________ is an example of an export of a service.

List the BRICS countries.

All of the following characteristics describe an independent agent except that it

Which of the following is correct with respect to the BRIC countries?

Which of the following is correct with regard to the balance of trade and the balance of payments?

When a company sends some of its own managers overseas to conduct business in a local office, this is an example of

Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

How will a business firm know if there is a demand for its product in another nation?

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

KFC's dishes in China come with a side order of rice and soy milk. This is an example of

According to the World Bank, ________ is considered an upper middle-income country.

Your television set, your shoes, even the roast lamb on your dinner table is likely to be the result of

What are the four steps that firms should go through when deciding whether or not to go international?

List and briefly describe the three basic barriers to international trade. Give examples of each.

The rate of exchange of a nation's currency has a noticeable effect upon the competitive advantages or disadvantages of its companies.

As the value of a country's currency rises

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters