Question 1

What is the difference between absolute and comparative advantage?

Accepted Answer

An absolute advantage exists when a coun

Question 2

With respect to international organizational structures, it is correct to say that

Accepted Answer

A)  independent agents usually represent just one firm in foreign markets. 
B)  licensing arrangements are too expensive for most Canadian firms to get involved in. 
C)  a company has more control over branch managers than it does over agents or licence holders. 
D)  the number of strategic alliances has declined somewhat in recent years because of strict government regulations in many foreign countries. 
E)  Investment Canada's mandate is to limit direct foreign investment in Canada so that Canadian firms, not foreign ones, will control the Canadian market. 
A)  independent agents usually represent just one firm in foreign markets. 
B)  licensing arrangements are too expensive for most Canadian firms to get involved in. 
C)  a company has more control over branch managers than it does over agents or licence holders. 
D)  the number of strategic alliances has declined somewhat in recent years because of strict government regulations in many foreign countries. 
E)  Investment Canada's mandate is to limit direct foreign investment in Canada so that Canadian firms, not foreign ones, will control the Canadian market.

Question 3

The purpose of GATT was to

Accepted Answer

A)  improve trade balances in developing countries. 
B)  reduce or eliminate trade barriers such as quotas and tariffs. 
C)  stop the practice of "dumping." 
D)  encourage governments to increase the protection for their domestic industries. 
E)  do all of these. 
A)  improve trade balances in developing countries. 
B)  reduce or eliminate trade barriers such as quotas and tariffs. 
C)  stop the practice of "dumping." 
D)  encourage governments to increase the protection for their domestic industries. 
E)  do all of these.

Question 4

Which of the following is correct with respect to exchange rates?

Accepted Answer

A)  The value of one country's currency relative to another varies with changes in GDP, but not as a response to market conditions. 
B)  The value of the Canadian dollar falls as the foreign demand for Canadian goods rises. 
C)  Exchange rates typically fluctuate by very small amounts on a daily basis. 
D)  Fluctuation in exchange rates have little impact on the balance of trade. 
E)  All of these are correct. 
A)  The value of one country's currency relative to another varies with changes in GDP, but not as a response to market conditions. 
B)  The value of the Canadian dollar falls as the foreign demand for Canadian goods rises. 
C)  Exchange rates typically fluctuate by very small amounts on a daily basis. 
D)  Fluctuation in exchange rates have little impact on the balance of trade. 
E)  All of these are correct.

Question 5

Which of the following is correct with respect to absolute and comparative advantage?

Accepted Answer

A)  Brazilian coffee beans are a good example of comparative advantage. 
B)  Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C)  A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all) other countries. 
D)  All countries have a comparative advantage in some products. 
E)  All of these are correct. 
A)  Brazilian coffee beans are a good example of comparative advantage. 
B)  Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C)  A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all) other countries. 
D)  All countries have a comparative advantage in some products. 
E)  All of these are correct.

Question 6

As the value of a country's currency falls, there is an increasing incentive for foreign companies to ship products into that country's domestic market.

Accepted Answer

A) True 
 B)False

Question 7

The balance of payments that Canada has experienced has been

Accepted Answer

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

Question 8

A firm that produces goods in one country and distributes and sells them in other countries is

Accepted Answer

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

Question 9

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. Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy, because the company might want to choose a more advanced entry strategy later. Which of the following, if true, would strengthen this position?

Accepted Answer

A)  Foreign partners usually want to enter into contractual agreements with American companies for a long-term period. 
B)  A contractual agreement should spell out as many expectations of the foreign partner as possible. 
C)  Contractual agreements should be entered into only if the foreign partner is extremely reliable. 
D)  Contractual agreements require approval by legal specialists from all countries involved. 
E)  Contractual agreements allow a company to provide for open, flexible terms of operation. 
A)  Foreign partners usually want to enter into contractual agreements with American companies for a long-term period. 
B)  A contractual agreement should spell out as many expectations of the foreign partner as possible. 
C)  Contractual agreements should be entered into only if the foreign partner is extremely reliable. 
D)  Contractual agreements require approval by legal specialists from all countries involved. 
E)  Contractual agreements allow a company to provide for open, flexible terms of operation.

Question 10

If there is a favourable balance of payments, it means that

Accepted Answer

A)  a country exports manufactured goods and imports raw materials. 
B)  a country imports more than it exports for each country with which it trades. 
C)  a country exports more than it imports for each country with which it trades. 
D)  the country has more money flowing into it than out as a result of trade and other transactions. 
E)  a country exports raw materials and imports manufactured goods. 
A)  a country exports manufactured goods and imports raw materials. 
B)  a country imports more than it exports for each country with which it trades. 
C)  a country exports more than it imports for each country with which it trades. 
D)  the country has more money flowing into it than out as a result of trade and other transactions. 
E)  a country exports raw materials and imports manufactured goods.

Question 11

According to the World Bank, high income countries include all of the following except

Accepted Answer

A)  Japan. 
B)  the United States. 
C)  Canada. 
D)  South Korea. 
E)  South Africa. 
A)  Japan. 
B)  the United States. 
C)  Canada. 
D)  South Korea. 
E)  South Africa.

Question 12

A licensing arrangement exists where the owner of a product or process allows another business to produce, distribute, or market it for a fee or royalty.

Accepted Answer

A) True 
 B)False

Question 13

In which international organization structure does a firm have greatest control over foreign activities?

Accepted Answer

A)  Exporting arrangements 
B)  Strategic alliances 
C)  Importing arrangements 
D)  Licensing arrangements 
E)  Independent agents 
A)  Exporting arrangements 
B)  Strategic alliances 
C)  Importing arrangements 
D)  Licensing arrangements 
E)  Independent agents

Question 14

Citronel is a French company that markets a range of fashionable clothing to French consumers under its widely known brand name. The company wants to begin marketing its products worldwide and needs to decide on the most effective and profitable strategy. Citronel's Chief Operating Officer thinks that the company should adopt a standardized marketing approach throughout the world. Which of the following, if true, would strengthen her position?

Accepted Answer

A)  Long production runs of the same items would allow the company to save money. 
B)  Different cultures vary in how they perceive French clothing. 
C)  The company has had only limited success establishing a consistent marketing strategy throughout France. 
D)  The company will have strong competition from various brands throughout the world. 
E)  The company has a substantial marketing budget. 
A)  Long production runs of the same items would allow the company to save money. 
B)  Different cultures vary in how they perceive French clothing. 
C)  The company has had only limited success establishing a consistent marketing strategy throughout France. 
D)  The company will have strong competition from various brands throughout the world. 
E)  The company has a substantial marketing budget.

Question 15

The balance of payments refers to

Accepted Answer

A)  the relative difference between money flowing into and out of a country. 
B)  the difference in value between a country's total exports and its total imports. 
C)  the relative difference in value between a country's total exports and its total imports. 
D)  the difference between money flowing into and out of a country as a result of trade and other transactions. 
E)  the difference in exchange rates between two countries. 
A)  the relative difference between money flowing into and out of a country. 
B)  the difference in value between a country's total exports and its total imports. 
C)  the relative difference in value between a country's total exports and its total imports. 
D)  the difference between money flowing into and out of a country as a result of trade and other transactions. 
E)  the difference in exchange rates between two countries.

Question 16

Which of the following best explains why a nation exports specific products and services?

Accepted Answer

A)  Whether the nation has international companies 
B)  Whether a nation has a trade surplus 
C)  Whether a nation has an absolute advantage 
D)  Whether a nation has a balance of trade 
E)  The level of the country's GNP 
A)  Whether the nation has international companies 
B)  Whether a nation has a trade surplus 
C)  Whether a nation has an absolute advantage 
D)  Whether a nation has a balance of trade 
E)  The level of the country's GNP

Question 17

A firm that buys products made in another country for distribution and sale in its own country is

Accepted Answer

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

Question 18

Local content laws require that products sold in a particular country must be completely made in that country.

Accepted Answer

A) True 
 B)False

Question 19

What are the advantages and disadvantages of globalization?

Accepted Answer

Globalization has increased the standard

Question 20

What is an independent agent?

Accepted Answer

An independent agent is a fore

What is the difference between absolute and comparative advantage?

With respect to international organizational structures, it is correct to say that

The purpose of GATT was to

Which of the following is correct with respect to exchange rates?

Which of the following is correct with respect to absolute and comparative advantage?

As the value of a country's currency falls, there is an increasing incentive for foreign companies to ship products into that country's domestic market.

The balance of payments that Canada has experienced has been

A firm that produces goods in one country and distributes and sells them in other countries is

If there is a favourable balance of payments, it means that

According to the World Bank, high income countries include all of the following except

A licensing arrangement exists where the owner of a product or process allows another business to produce, distribute, or market it for a fee or royalty.

In which international organization structure does a firm have greatest control over foreign activities?

The balance of payments refers to

Which of the following best explains why a nation exports specific products and services?

A firm that buys products made in another country for distribution and sale in its own country is

Local content laws require that products sold in a particular country must be completely made in that country.

What are the advantages and disadvantages of globalization?

What is an independent agent?

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 the difference between absolute and comparative advantage?

With respect to international organizational structures, it is correct to say that

The purpose of GATT was to

Which of the following is correct with respect to exchange rates?

Which of the following is correct with respect to absolute and comparative advantage?

As the value of a country's currency falls, there is an increasing incentive for foreign companies to ship products into that country's domestic market.

The balance of payments that Canada has experienced has been

A firm that produces goods in one country and distributes and sells them in other countries is

If there is a favourable balance of payments, it means that

According to the World Bank, high income countries include all of the following except

A licensing arrangement exists where the owner of a product or process allows another business to produce, distribute, or market it for a fee or royalty.

In which international organization structure does a firm have greatest control over foreign activities?

The balance of payments refers to

Which of the following best explains why a nation exports specific products and services?

A firm that buys products made in another country for distribution and sale in its own country is

Local content laws require that products sold in a particular country must be completely made in that country.

What are the advantages and disadvantages of globalization?

What is an independent agent?

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