Question 1

There is no practical difference between an embargo and a quota if the quota is zero.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not true about protectionism?

Accepted Answer

A)  It reduces competition. 
B)  It may cause friction between nations. 
C)  It increases prices to consumers. 
D)  Tariffs and quotas protect domestic firms and jobs. 
E)  It is a revenue source for the provincial governments in Canada. 
A)  It reduces competition. 
B)  It may cause friction between nations. 
C)  It increases prices to consumers. 
D)  Tariffs and quotas protect domestic firms and jobs. 
E)  It is a revenue source for the provincial governments in Canada.

Question 3

What are the three goals of the World Trade Organization (WTO)?

Accepted Answer

The three goals are (1) to enc

Question 4

The largest free marketplace in the world is

Accepted Answer

A)  NAFTA. 
B)  the European Union. 
C)  ASEAN. 
D)  Mercosur. 
E)  the Gulf Cooperation Council. 
A)  NAFTA. 
B)  the European Union. 
C)  ASEAN. 
D)  Mercosur. 
E)  the Gulf Cooperation Council.

Question 5

The balance of trade that Canada has experienced has been

Accepted Answer

A)  changing between favourable and unfavourable with about a seven year cycle. 
B)  unfavourable since Confederation. 
C)  favourable for most of the last 30 years. 
D)  unfavourable for the last 30 years. 
E)  favourable since Confederation. 
A)  changing between favourable and unfavourable with about a seven year cycle. 
B)  unfavourable since Confederation. 
C)  favourable for most of the last 30 years. 
D)  unfavourable for the last 30 years. 
E)  favourable since Confederation.

Question 6

Define licensing arrangements and strategic alliances and discuss their relative merits.

Accepted Answer

With a licensing arrangement, a firm giv

Question 7

What are the BRICS countries, and why have they become important?

Accepted Answer

BRICS is a term that describes five incr

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. An executive at Derrido suggests that a contractual relationship will provide the company with a fair amount of control over how the foreign partner markets Derrido's product. Which of the following, if true, would strengthen this case?

Accepted Answer

A)  Contractual relationships typically include limits and stipulations on the foreign partner. 
B)  Contractual relationships typically limit the responsibility of the originating firm. 
C)  Contractual relationships can be complicated by international law. 
D)  Foreign companies often have considerable familiarity with American culture. 
E)  Foreign companies usually expect to be given latitude with how they market U.S.-made products. 
A)  Contractual relationships typically include limits and stipulations on the foreign partner. 
B)  Contractual relationships typically limit the responsibility of the originating firm. 
C)  Contractual relationships can be complicated by international law. 
D)  Foreign companies often have considerable familiarity with American culture. 
E)  Foreign companies usually expect to be given latitude with how they market U.S.-made products.

Question 9

The total volume of world trade is about $10 trillion.

Accepted Answer

A) True 
 B)False

Question 10

Increased demand for a nation's products will tend to make its currency stronger while driving down the price of foreign goods.

Accepted Answer

A) True 
 B)False

Question 11

Levi Strauss has an organization in a foreign country that has agreed to sell their products, to collect payments from the buyers, and to make sure that the buyers are satisfied. The organization is not part of Levi Strauss and may represent several non-competing firms at the same time. The organizational structure that Levi Strauss has selected is called a(n)

Accepted Answer

A)  strategic alliance. 
B)  independent agent. 
C)  branch office. 
D)  licensing agreement. 
E)  direct investment. 
A)  strategic alliance. 
B)  independent agent. 
C)  branch office. 
D)  licensing agreement. 
E)  direct investment.

Question 12

Merritt Corp. is interested in doing business internationally. They have already determined that there is international demand for their product. What should they do next?

Accepted Answer

A)  Determine if the company has the skills necessary to do business abroad 
B)  Contact a local business to form a joint venture 
C)  Assess the business climate for reaction to foreign products 
D)  Determine if the product needs to be modified to fit the foreign market 
E)  Conduct market research to determine potential sales 
A)  Determine if the company has the skills necessary to do business abroad 
B)  Contact a local business to form a joint venture 
C)  Assess the business climate for reaction to foreign products 
D)  Determine if the product needs to be modified to fit the foreign market 
E)  Conduct market research to determine potential sales

Question 13

Which of the following is correct regarding the barriers to international trade?

Accepted Answer

A)  Research clearly demonstrates that differences in culture are the most important barrier. 
B)  The two general categories where barriers exist are in command and market economies. 
C)  An embargo is an extreme form of a tariff. 
D)  Local content laws apply only to situations across international borders. 
E)  When Google agreed to pay $500 million to settle a case with the U.S. government over advertising revenue earned from Canadian online pharmacies, this was an example of business practice laws being violated. 
A)  Research clearly demonstrates that differences in culture are the most important barrier. 
B)  The two general categories where barriers exist are in command and market economies. 
C)  An embargo is an extreme form of a tariff. 
D)  Local content laws apply only to situations across international borders. 
E)  When Google agreed to pay $500 million to settle a case with the U.S. government over advertising revenue earned from Canadian online pharmacies, this was an example of business practice laws being violated.

Question 14

In marketing its new product in a foreign nation, Mega Computer was surprised to see the very low prices on its local competitor's models. Subsequent investigation revealed that the domestic businesses had received money from the government. Mega now knows what a(n) ________ is.

Accepted Answer

A)  subsidy 
B)  tariff 
C)  embargo 
D)  local content law 
E)  quota 
A)  subsidy 
B)  tariff 
C)  embargo 
D)  local content law 
E)  quota

Question 15

Explain what the term exchange rate means. What is a "floating" exchange rate?

Accepted Answer

An exchange rate is the rate at which on

Question 16

All of the following are included in the balance of payments except

Accepted Answer

A)  money paid for imports. 
B)  money paid by domestic corporations for taxes. 
C)  money spent by tourists. 
D)  money spent on foreign aid. 
E)  money paid for exports. 
A)  money paid for imports. 
B)  money paid by domestic corporations for taxes. 
C)  money spent by tourists. 
D)  money spent on foreign aid. 
E)  money paid for exports.

Question 17

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture, this was an example of a protectionist tariff.

Accepted Answer

A) True 
 B)False

Question 18

Farmer Sal grows strawberries. The berries are shipped to a local manufacturing plant where they are made into jam, labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas. This product of Ontario is also referred to as a(n)

Accepted Answer

A)  export. 
B)  import. 
C)  trade product. 
D)  absolute product. 
E)  competitive advantage. 
A)  export. 
B)  import. 
C)  trade product. 
D)  absolute product. 
E)  competitive advantage.

Question 19

Social and cultural barriers are the biggest barriers to international trade.

Accepted Answer

A) True 
 B)False

Question 20

What is the difference between the balance of trade and the balance of payments?

Accepted Answer

The balance of trade is the difference b

There is no practical difference between an embargo and a quota if the quota is zero.

Which of the following is not true about protectionism?

What are the three goals of the World Trade Organization (WTO)?

The largest free marketplace in the world is

The balance of trade that Canada has experienced has been

Define licensing arrangements and strategic alliances and discuss their relative merits.

What are the BRICS countries, and why have they become important?

The total volume of world trade is about $10 trillion.

Increased demand for a nation's products will tend to make its currency stronger while driving down the price of foreign goods.

Merritt Corp. is interested in doing business internationally. They have already determined that there is international demand for their product. What should they do next?

Which of the following is correct regarding the barriers to international trade?

In marketing its new product in a foreign nation, Mega Computer was surprised to see the very low prices on its local competitor's models. Subsequent investigation revealed that the domestic businesses had received money from the government. Mega now knows what a(n) ________ is.

Explain what the term exchange rate means. What is a "floating" exchange rate?

All of the following are included in the balance of payments except

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture, this was an example of a protectionist tariff.

Farmer Sal grows strawberries. The berries are shipped to a local manufacturing plant where they are made into jam, labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas. This product of Ontario is also referred to as a(n)

Social and cultural barriers are the biggest barriers to international trade.

What is the difference between the balance of trade and the balance of payments?

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

There is no practical difference between an embargo and a quota if the quota is zero.

Which of the following is not true about protectionism?

What are the three goals of the World Trade Organization (WTO)?

The largest free marketplace in the world is

The balance of trade that Canada has experienced has been

Define licensing arrangements and strategic alliances and discuss their relative merits.

What are the BRICS countries, and why have they become important?

The total volume of world trade is about $10 trillion.

Increased demand for a nation's products will tend to make its currency stronger while driving down the price of foreign goods.

Merritt Corp. is interested in doing business internationally. They have already determined that there is international demand for their product. What should they do next?

Which of the following is correct regarding the barriers to international trade?

In marketing its new product in a foreign nation, Mega Computer was surprised to see the very low prices on its local competitor's models. Subsequent investigation revealed that the domestic businesses had received money from the government. Mega now knows what a(n) ________ is.

Explain what the term exchange rate means. What is a "floating" exchange rate?

All of the following are included in the balance of payments except

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture, this was an example of a protectionist tariff.

Farmer Sal grows strawberries. The berries are shipped to a local manufacturing plant where they are made into jam, labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas. This product of Ontario is also referred to as a(n)

Social and cultural barriers are the biggest barriers to international trade.

What is the difference between the balance of trade and the balance of payments?

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