Question 1

Which of the following is correct regarding the levels of foreign involvement a business can exhibit?

Accepted Answer

A)  Importing and exporting represent the highest level of involvement in international operations. 
B)  Exporters and importers tend to conduct most of their business in foreign markets. 
C)  Only large companies are exporters. 
D)  An international firm conducts a significant portion of its business abroad, and it usually manufactures the vast majority of its products in foreign countries. 
E)  For multinational firms, the location of its head office is largely irrelevant. 
A)  Importing and exporting represent the highest level of involvement in international operations. 
B)  Exporters and importers tend to conduct most of their business in foreign markets. 
C)  Only large companies are exporters. 
D)  An international firm conducts a significant portion of its business abroad, and it usually manufactures the vast majority of its products in foreign countries. 
E)  For multinational firms, the location of its head office is largely irrelevant.

Question 2

How might socio-cultural differences affect the sales of Nokia phones outside Finland?

Accepted Answer

Any firm planning to conduct business in

Question 3

One of the most significant developments in foreign exchange has been the introduction of the euro. Explain why.

Accepted Answer

Officially introduced in 2002, it is use

Question 4

In this type of international structure, the firm locates a partner who shares in the risk and in the profits.

Accepted Answer

A)  Branch office 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Licensing agreement 
E)  Independent agent 
A)  Branch office 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Licensing agreement 
E)  Independent agent

Question 5

Clement is the owner of Dills Distillery, which makes and bottles fruit wine. In his planning to export the wine, Clement should consider all of the following except

Accepted Answer

A)  the target country's balance of trade. 
B)  demand for the wine. 
C)  legal aspects of the target country. 
D)  cultural aspects of the target country. 
E)  economic road blocks. 
A)  the target country's balance of trade. 
B)  demand for the wine. 
C)  legal aspects of the target country. 
D)  cultural aspects of the target country. 
E)  economic road blocks.

Question 6

As the value of a country's currency falls, its balance of trade should

Accepted Answer

A)  decline. 
B)  remain the same. 
C)  improve. 
D)  either increase or decrease. 
E)  none of these. 
A)  decline. 
B)  remain the same. 
C)  improve. 
D)  either increase or decrease. 
E)  none of these.

Question 7

With regard to strategic alliances, which of the following is true?

Accepted Answer

A)  They are declining in importance after an initially promising start. 
B)  The satisfaction of the most influential party must be assured for it to work. 
C)  A clear vision of the future of the venture must be held by at least one of the parties for it to be a success. 
D)  Partner compatibility is guaranteed by financial agreements at the outset. 
E)  They are also called joint ventures. 
A)  They are declining in importance after an initially promising start. 
B)  The satisfaction of the most influential party must be assured for it to work. 
C)  A clear vision of the future of the venture must be held by at least one of the parties for it to be a success. 
D)  Partner compatibility is guaranteed by financial agreements at the outset. 
E)  They are also called joint ventures.

Question 8

According to the World Bank, lower middle-income countries are defined as

Accepted Answer

A)  those with per capita income between US$4126 and US$12 475. 
B)  those with per capita income between US$5210 and US$8210. 
C)  those with per capita income between US$765 and US$21 345. 
D)  those with per capita income between US$3595 and US$11 115. 
E)  those with per capita income between US$1046 and US$4125. 
A)  those with per capita income between US$4126 and US$12 475. 
B)  those with per capita income between US$5210 and US$8210. 
C)  those with per capita income between US$765 and US$21 345. 
D)  those with per capita income between US$3595 and US$11 115. 
E)  those with per capita income between US$1046 and US$4125.

Question 9

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called

Accepted Answer

A)  a trade deficit. 
B)  a positive balance of trade. 
C)  an absolute advantage. 
D)  a negative balance of payments. 
E)  negative capital mobility. 
A)  a trade deficit. 
B)  a positive balance of trade. 
C)  an absolute advantage. 
D)  a negative balance of payments. 
E)  negative capital mobility.

Question 10

A few years ago, before the various accounting groups merged, the Certified General Accountants challenged the rule that in Quebec only Chartered Accountants could have auditing rights. This was an example of a dispute about

Accepted Answer

A)  protectionist tariffs. 
B)  revenue tariffs. 
C)  the Agreement on Internal Trade. 
D)  money laundering. 
E)  federal/provincial revenue sharing. 
A)  protectionist tariffs. 
B)  revenue tariffs. 
C)  the Agreement on Internal Trade. 
D)  money laundering. 
E)  federal/provincial revenue sharing.

Question 11

Which of the following companies may not find it profitable to go international?

Accepted Answer

A)  A mining company 
B)  A company that buys and sells fresh produce and fish 
C)  A manufacturing firm specializing in bicycles 
D)  A financial investment firm 
E)  A newsprint company 
A)  A mining company 
B)  A company that buys and sells fresh produce and fish 
C)  A manufacturing firm specializing in bicycles 
D)  A financial investment firm 
E)  A newsprint company

Question 12

The World Bank, an agency of the United Nations, uses per capita income as a measure to divide countries into one of four groups. Distinguish among the four groups and identify the countries in each group.

Accepted Answer

- High-income countries are those with p

Question 13

Licensing arrangements are arrangements

Accepted Answer

A)  by a creator of a musical or artistic work to allow another person to use, produce, distribute, or market it for a fee or royalty. 
B)  by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty. 
C)  by a general contractor to allow international subcontractors to build a building for a fee or royalty. 
D)  by an owner of a process or product to allow another business to produce, distribute, or market it for a fee or royalty. 
E)  by an owner of a patent to allow another business to produce, distribute, or market the product covered by the patent for a fee or royalty. 
A)  by a creator of a musical or artistic work to allow another person to use, produce, distribute, or market it for a fee or royalty. 
B)  by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty. 
C)  by a general contractor to allow international subcontractors to build a building for a fee or royalty. 
D)  by an owner of a process or product to allow another business to produce, distribute, or market it for a fee or royalty. 
E)  by an owner of a patent to allow another business to produce, distribute, or market the product covered by the patent for a fee or royalty.

Question 14

Why might social and cultural differences prevent a firm in one country from exporting their products to another country?

Accepted Answer

These differences (e.g., different relig

Question 15

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

Accepted Answer

A)  Modify the product to meet the standards of different countries 
B)  Deal with independent agents 
C)  Delay international operations until the currency exchange rate is favourable 
D)  Drop the idea of international operation 
E)  None of these 
A)  Modify the product to meet the standards of different countries 
B)  Deal with independent agents 
C)  Delay international operations until the currency exchange rate is favourable 
D)  Drop the idea of international operation 
E)  None of these

Question 16

When a country imports more than it exports, it has a favourable balance of trade.

Accepted Answer

A) True 
 B)False

Question 17

The absolute advantage form of competitive advantage means

Accepted Answer

A)  that a country does not belong to any free trade agreements. 
B)  that a country can produce everything better or more cheaply than any other country. 
C)  that a country can produce some products better or more cheaply than it can others. 
D)  that a country is the sole supplier of a product or service. 
E)  that a country can produce something better or more cheaply than any other country. 
A)  that a country does not belong to any free trade agreements. 
B)  that a country can produce everything better or more cheaply than any other country. 
C)  that a country can produce some products better or more cheaply than it can others. 
D)  that a country is the sole supplier of a product or service. 
E)  that a country can produce something better or more cheaply than any other country.

Question 18

What actions can a government take to discourage trade?

Accepted Answer

A government may impose a quota (a restr

Question 19

Which statement is true regarding independent agents?

Accepted Answer

A)  They represent one firm at a time. 
B)  They usually specialize in a particular product. 
C)  They act as sales representatives. 
D)  They are usually based at domestic offices. 
E)  They do not monitor or address customer satisfaction. 
A)  They represent one firm at a time. 
B)  They usually specialize in a particular product. 
C)  They act as sales representatives. 
D)  They are usually based at domestic offices. 
E)  They do not monitor or address customer satisfaction.

Question 20

With regard to the BRIC countries, it is correct to say that

Accepted Answer

A)  they all emphasize the export of raw materials. 
B)  they all have a low level of industrialization at the moment, but are progressing rapidly. 
C)  Russia is the strongest in terms of manufacturing. 
D)  Brazil is strong in agriculture and commodities. 
E)  All of these statements are correct. 
A)  they all emphasize the export of raw materials. 
B)  they all have a low level of industrialization at the moment, but are progressing rapidly. 
C)  Russia is the strongest in terms of manufacturing. 
D)  Brazil is strong in agriculture and commodities. 
E)  All of these statements are correct.

Which of the following is correct regarding the levels of foreign involvement a business can exhibit?

How might socio-cultural differences affect the sales of Nokia phones outside Finland?

One of the most significant developments in foreign exchange has been the introduction of the euro. Explain why.

In this type of international structure, the firm locates a partner who shares in the risk and in the profits.

Clement is the owner of Dills Distillery, which makes and bottles fruit wine. In his planning to export the wine, Clement should consider all of the following except

As the value of a country's currency falls, its balance of trade should

With regard to strategic alliances, which of the following is true?

According to the World Bank, lower middle-income countries are defined as

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called

A few years ago, before the various accounting groups merged, the Certified General Accountants challenged the rule that in Quebec only Chartered Accountants could have auditing rights. This was an example of a dispute about

Which of the following companies may not find it profitable to go international?

The World Bank, an agency of the United Nations, uses per capita income as a measure to divide countries into one of four groups. Distinguish among the four groups and identify the countries in each group.

Licensing arrangements are arrangements

Why might social and cultural differences prevent a firm in one country from exporting their products to another country?

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

When a country imports more than it exports, it has a favourable balance of trade.

The absolute advantage form of competitive advantage means

What actions can a government take to discourage trade?

Which statement is true regarding independent agents?

With regard to the BRIC countries, it is correct to say that

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

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Exam 5: The Global Context of Business

Which of the following is correct regarding the levels of foreign involvement a business can exhibit?

How might socio-cultural differences affect the sales of Nokia phones outside Finland?

One of the most significant developments in foreign exchange has been the introduction of the euro. Explain why.

In this type of international structure, the firm locates a partner who shares in the risk and in the profits.

Clement is the owner of Dills Distillery, which makes and bottles fruit wine. In his planning to export the wine, Clement should consider all of the following except

As the value of a country's currency falls, its balance of trade should

With regard to strategic alliances, which of the following is true?

According to the World Bank, lower middle-income countries are defined as

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called

A few years ago, before the various accounting groups merged, the Certified General Accountants challenged the rule that in Quebec only Chartered Accountants could have auditing rights. This was an example of a dispute about

Which of the following companies may not find it profitable to go international?

The World Bank, an agency of the United Nations, uses per capita income as a measure to divide countries into one of four groups. Distinguish among the four groups and identify the countries in each group.

Licensing arrangements are arrangements

Why might social and cultural differences prevent a firm in one country from exporting their products to another country?

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

When a country imports more than it exports, it has a favourable balance of trade.

The absolute advantage form of competitive advantage means

What actions can a government take to discourage trade?

Which statement is true regarding independent agents?

With regard to the BRIC countries, it is correct to say that

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