Question 1

How does a quota influence international trade?

Accepted Answer

A quota restricts th

Question 2

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as

Accepted Answer

A)  an importer. 
B)  an international firm. 
C)  mininational. 
D)  an exporter. 
E)  a multinational firm. 
A)  an importer. 
B)  an international firm. 
C)  mininational. 
D)  an exporter. 
E)  a multinational firm.

Question 3

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Accepted Answer

A) True 
 B)False

Question 4

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture. To take advantage of this she should explore

Accepted Answer

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

Question 5

Which of the following statements best describes the effects of subsidies?

Accepted Answer

A)  A subsidy essentially lowers the prices of foreign goods rather than raising the prices of domestic goods. 
B)  A subsidy essentially raises the prices of domestic goods rather than lowering the prices of foreign goods. 
C)  A subsidy essentially lowers the prices of domestic goods rather than raising the prices of foreign goods. 
D)  A subsidy essentially raises the prices of foreign goods while also raising the prices of domestic goods. 
E)  A subsidy essentially lowers the prices of foreign goods while also lowering the prices of domestic goods. 
A)  A subsidy essentially lowers the prices of foreign goods rather than raising the prices of domestic goods. 
B)  A subsidy essentially raises the prices of domestic goods rather than lowering the prices of foreign goods. 
C)  A subsidy essentially lowers the prices of domestic goods rather than raising the prices of foreign goods. 
D)  A subsidy essentially raises the prices of foreign goods while also raising the prices of domestic goods. 
E)  A subsidy essentially lowers the prices of foreign goods while also lowering the prices of domestic goods.

Question 6

Can-Eng Manufacturing, Canada's largest supplier of industrial furnaces, exports its furnaces to companies in Japan, Brazil, Germany, Korea, Taiwan, and Mexico. Can-Eng has an agreement with foreign companies in these countries called a(n)

Accepted Answer

A)  international mandate. 
B)  licensing arrangement. 
C)  independent agency. 
D)  export agreement. 
E)  strategic alliance. 
A)  international mandate. 
B)  licensing arrangement. 
C)  independent agency. 
D)  export agreement. 
E)  strategic alliance.

Question 7

Country Z can produce pig iron more efficiently than any other country. Which type of advantage in pig iron does Country Z have?

Accepted Answer

A)  Absolute advantage 
B)  National competitive advantage 
C)  Comparative advantage 
D)  Trade balance advantage 
E)  Resource advantage 
A)  Absolute advantage 
B)  National competitive advantage 
C)  Comparative advantage 
D)  Trade balance advantage 
E)  Resource advantage

Question 8

Algoma Treasures, a gift-wrap manufacturer, is considering expanding its business into the international market. What key question must have a positive answer before a company begins international operations?

Accepted Answer

A)  Is there a demand for its products abroad? 
B)  Is there a favourable balance of trade? 
C)  What is the currency exchange rate? 
D)  Is there a favourable balance of payments? 
E)  Is local culture compatible? 
A)  Is there a demand for its products abroad? 
B)  Is there a favourable balance of trade? 
C)  What is the currency exchange rate? 
D)  Is there a favourable balance of payments? 
E)  Is local culture compatible?

Question 9

How does exporting benefit the Canadian economy?

Accepted Answer

- Increased sales volume
- Inc

Question 10

Which of the following is correct with regard to social and cultural differences?

Accepted Answer

A)  Canadians make fewer trips to supermarkets than Europeans do. 
B)  Most differences between cultures are pretty obvious. 
C)  Clothing manufacturers do not have to worry too much about cultural differences because fashion trends have rapidly become worldwide. 
D)  Countries with growing populations tend to have a disproportionate number of older people. 
E)  All of these are correct. 
A)  Canadians make fewer trips to supermarkets than Europeans do. 
B)  Most differences between cultures are pretty obvious. 
C)  Clothing manufacturers do not have to worry too much about cultural differences because fashion trends have rapidly become worldwide. 
D)  Countries with growing populations tend to have a disproportionate number of older people. 
E)  All of these are correct.

Question 11

Arguments for and against protectionism include all of the following except

Accepted Answer

A)  tariffs and quotas protect domestic firms and jobs. 
B)  tariffs and quotas reduce competition and drive up prices. 
C)  tariffs and quotas adversely affect the exchange rate. 
D)  that while some jobs and industries would be protected with tariffs and quotas, all countries would be better off without them as jobs in other industries would expand. 
E)  tariffs and quotas are in response to actions of other governments. 
A)  tariffs and quotas protect domestic firms and jobs. 
B)  tariffs and quotas reduce competition and drive up prices. 
C)  tariffs and quotas adversely affect the exchange rate. 
D)  that while some jobs and industries would be protected with tariffs and quotas, all countries would be better off without them as jobs in other industries would expand. 
E)  tariffs and quotas are in response to actions of other governments.

Question 12

Investment Canada's mandate is

Accepted Answer

A)  to focus on the promotion of Canadian goods to other countries. 
B)  to focus on attracting foreign investment to Canada. 
C)  to track investment money to oversea banks. 
D)  to focus on aiding Canadian businesses in collecting money from their customers in foreign countries. 
E)  to promote the investment of Canadian dollars into foreign business operations. 
A)  to focus on the promotion of Canadian goods to other countries. 
B)  to focus on attracting foreign investment to Canada. 
C)  to track investment money to oversea banks. 
D)  to focus on aiding Canadian businesses in collecting money from their customers in foreign countries. 
E)  to promote the investment of Canadian dollars into foreign business operations.

Question 13

Associations of producers that control supply and prices are called

Accepted Answer

A)  cartels. 
B)  foreign direct investments. 
C)  business offices. 
D)  quotas. 
E)  independent agents. 
A)  cartels. 
B)  foreign direct investments. 
C)  business offices. 
D)  quotas. 
E)  independent agents.

Question 14

List and briefly explain the different international organizational structures that can be used to "go international."

Accepted Answer

A company can use an independent agent (

Question 15

In which international structure would royalties likely be paid to the exporter?

Accepted Answer

A)  By a branch office 
B)  Under a licensing arrangement 
C)  By a subsidiary manufacturing plant 
D)  In a joint venture 
E)  In a strategic alliance 
A)  By a branch office 
B)  Under a licensing arrangement 
C)  By a subsidiary manufacturing plant 
D)  In a joint venture 
E)  In a strategic alliance

Question 16

Ford, an American car company, purchased Volvo, which is based in Sweden. This is an example of

Accepted Answer

A)  a multinational firm. 
B)  an independent agency. 
C)  a licensing arrangement. 
D)  a foreign direct investment. 
E)  a strategic alliance. 
A)  a multinational firm. 
B)  an independent agency. 
C)  a licensing arrangement. 
D)  a foreign direct investment. 
E)  a strategic alliance.

Question 17

The Acrylic Paint Company in Canada has joined forces with the 1-2-3 Plastics Company in Italy to create a non-peeling, plastics-based paint. Both companies intend to share the research costs and any profits. This an example of

Accepted Answer

A)  a licensing arrangement. 
B)  a branch office setup. 
C)  a strategic alliance. 
D)  a foreign direct investment. 
E)  an import-export relationship. 
A)  a licensing arrangement. 
B)  a branch office setup. 
C)  a strategic alliance. 
D)  a foreign direct investment. 
E)  an import-export relationship.

Question 18

Using a(n) ________ strategy, the company finds a partner in the country in which it would like to conduct business.

Accepted Answer

A)  independent agency 
B)  direct investment 
C)  strategic alliance 
D)  replication 
E)  branch office 
A)  independent agency 
B)  direct investment 
C)  strategic alliance 
D)  replication 
E)  branch office

Question 19

What is a cartel?

Accepted Answer

A cartel is an assoc

Question 20

International trade is important for manufactured goods, but not for services.

Accepted Answer

A) True 
 B)False

How does a quota influence international trade?

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture. To take advantage of this she should explore

Which of the following statements best describes the effects of subsidies?

Can-Eng Manufacturing, Canada's largest supplier of industrial furnaces, exports its furnaces to companies in Japan, Brazil, Germany, Korea, Taiwan, and Mexico. Can-Eng has an agreement with foreign companies in these countries called a(n)

Country Z can produce pig iron more efficiently than any other country. Which type of advantage in pig iron does Country Z have?

Algoma Treasures, a gift-wrap manufacturer, is considering expanding its business into the international market. What key question must have a positive answer before a company begins international operations?

How does exporting benefit the Canadian economy?

Which of the following is correct with regard to social and cultural differences?

Arguments for and against protectionism include all of the following except

Investment Canada's mandate is

Associations of producers that control supply and prices are called

List and briefly explain the different international organizational structures that can be used to "go international."

In which international structure would royalties likely be paid to the exporter?

Ford, an American car company, purchased Volvo, which is based in Sweden. This is an example of

The Acrylic Paint Company in Canada has joined forces with the 1-2-3 Plastics Company in Italy to create a non-peeling, plastics-based paint. Both companies intend to share the research costs and any profits. This an example of

Using a(n) ________ strategy, the company finds a partner in the country in which it would like to conduct business.

What is a cartel?

International trade is important for manufactured goods, but not for services.

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

How does a quota influence international trade?

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Susie lives in Vancouver and has noticed that there seems to be a rising interest in goods from the Chinese culture. To take advantage of this she should explore

Which of the following statements best describes the effects of subsidies?

Can-Eng Manufacturing, Canada's largest supplier of industrial furnaces, exports its furnaces to companies in Japan, Brazil, Germany, Korea, Taiwan, and Mexico. Can-Eng has an agreement with foreign companies in these countries called a(n)

Country Z can produce pig iron more efficiently than any other country. Which type of advantage in pig iron does Country Z have?

Algoma Treasures, a gift-wrap manufacturer, is considering expanding its business into the international market. What key question must have a positive answer before a company begins international operations?

How does exporting benefit the Canadian economy?

Which of the following is correct with regard to social and cultural differences?

Arguments for and against protectionism include all of the following except

Investment Canada's mandate is

Associations of producers that control supply and prices are called

List and briefly explain the different international organizational structures that can be used to "go international."

In which international structure would royalties likely be paid to the exporter?

Ford, an American car company, purchased Volvo, which is based in Sweden. This is an example of

The Acrylic Paint Company in Canada has joined forces with the 1-2-3 Plastics Company in Italy to create a non-peeling, plastics-based paint. Both companies intend to share the research costs and any profits. This an example of

Using a(n) ________ strategy, the company finds a partner in the country in which it would like to conduct business.

What is a cartel?

International trade is important for manufactured goods, but not for services.

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