Question 1

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

Accepted Answer

A)  quota laws 
B)  local content laws 
C)  business practice laws 
D)  free trade laws 
E)  subsidy laws 
A)  quota laws 
B)  local content laws 
C)  business practice laws 
D)  free trade laws 
E)  subsidy laws

Question 2

If the United States exports more to the Netherlands than it imports from the Netherlands, the United States has a trade deficit with the Netherlands.

Accepted Answer

A) True 
 B)False

Question 3

The U.S. government forbids the importation of cigars from Cuba. What is this practice called?

Accepted Answer

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

Question 4

Bridget wants to buy some English tea priced at 10 pounds from an online seller. The current exchange rate is 1.5 dollars to the pound. How much she will pay for the tea (excluding any upfront exchange fees)?

Accepted Answer

A)  $15.00 
B)  $12.50 
C)  $11.50 
D)  $8.50 
E)  $6.67 
A)  $15.00 
B)  $12.50 
C)  $11.50 
D)  $8.50 
E)  $6.67

Question 5

What is a cartel? Use an example to clarify your response.

Accepted Answer

A cartel is an association of producers

Question 6

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Accepted Answer

Dumping is the practice of selling a pro

Question 7

Which of the following refers to associations of producers that control supply and prices?

Accepted Answer

A)  independent agencies 
B)  cartels 
C)  trade alliances 
D)  multinational firms 
E)  trade monopolies 
A)  independent agencies 
B)  cartels 
C)  trade alliances 
D)  multinational firms 
E)  trade monopolies

Question 8

Which of the following, if True, would weaken the argument for exporting the company's products to China?

Accepted Answer

A)  Lite Foods will have to make significant investments if it decides to enter a joint venture in China. 
B)  Lite Foods would have to hire sales personnel from the host country if it opts for direct export. 
C)  Lite Foods is a risk-averse organization. 
D)  Lite Foods lacks Chinese market expertise and has not found reliable intermediaries with expertise in the market. 
E)  Lite Foods will export its products as is, as more and more Chinese consumers are adopting breakfast cereals. 
A)  Lite Foods will have to make significant investments if it decides to enter a joint venture in China. 
B)  Lite Foods would have to hire sales personnel from the host country if it opts for direct export. 
C)  Lite Foods is a risk-averse organization. 
D)  Lite Foods lacks Chinese market expertise and has not found reliable intermediaries with expertise in the market. 
E)  Lite Foods will export its products as is, as more and more Chinese consumers are adopting breakfast cereals.

Question 9

If 1 euro = $1.35 on June 4 and $1.40 on June 5, the value of the dollar has risen.

Accepted Answer

A) True 
 B)False

Question 10

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

Accepted Answer

Success in international trade will depe

Question 11

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

Accepted Answer

Balance of trade is the difference betwe

Question 12

In assessing a country's national competitive advantage, what is meant by factor conditions?

Accepted Answer

Factor conditions, also known as factors

Question 13

The number of strategic alliances among major companies has decreased significantly over the last decade.

Accepted Answer

A) True 
 B)False

Question 14

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue. Which of the following, if True, would strengthen this argument?

Accepted Answer

A)  Contractual relationships with foreign companies usually involve many rounds of negotiations. 
B)  Contractual relationships are less expensive to enter into than direct investment. 
C)  Compared to direct investment, contractual relationships make business less subject to unpredictable changes. 
D)  Compared to other forms of entry into international markets, contractual relationships tend to be risky. 
E)  Foreign companies in contractual relationships may behave unpredictably at future points in time. 
A)  Contractual relationships with foreign companies usually involve many rounds of negotiations. 
B)  Contractual relationships are less expensive to enter into than direct investment. 
C)  Compared to direct investment, contractual relationships make business less subject to unpredictable changes. 
D)  Compared to other forms of entry into international markets, contractual relationships tend to be risky. 
E)  Foreign companies in contractual relationships may behave unpredictably at future points in time.

Question 15

NAFTA regulates trade between the United States, Europe, and Japan.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

The three goals are 1) to encourage memb

Question 18

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

Accepted Answer

A) True 
 B)False

Question 19

The single largest trading partner of the United States is China.

Accepted Answer

A) True 
 B)False

Question 20

Transportation costs have relatively little impact on a domestic firm's decision to go international, compared to other possible factors.

Accepted Answer

A) True 
 B)False

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

If the United States exports more to the Netherlands than it imports from the Netherlands, the United States has a trade deficit with the Netherlands.

The U.S. government forbids the importation of cigars from Cuba. What is this practice called?

Bridget wants to buy some English tea priced at 10 pounds from an online seller. The current exchange rate is 1.5 dollars to the pound. How much she will pay for the tea (excluding any upfront exchange fees)?

What is a cartel? Use an example to clarify your response.

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Which of the following refers to associations of producers that control supply and prices?

Which of the following, if True, would weaken the argument for exporting the company's products to China?

If 1 euro = $1.35 on June 4 and $1.40 on June 5, the value of the dollar has risen.

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

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

In assessing a country's national competitive advantage, what is meant by factor conditions?

The number of strategic alliances among major companies has decreased significantly over the last decade.

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue. Which of the following, if True, would strengthen this argument?

NAFTA regulates trade between the United States, Europe, and Japan.

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?

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

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

The single largest trading partner of the United States is China.

Transportation costs have relatively little impact on a domestic firm's decision to go international, compared to other possible factors.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 4: The Global Context of Business

Many governments require that products sold in their particular country be at least partly made there. This policy involves what type of laws?

If the United States exports more to the Netherlands than it imports from the Netherlands, the United States has a trade deficit with the Netherlands.

The U.S. government forbids the importation of cigars from Cuba. What is this practice called?

Bridget wants to buy some English tea priced at 10 pounds from an online seller. The current exchange rate is 1.5 dollars to the pound. How much she will pay for the tea (excluding any upfront exchange fees)?

What is a cartel? Use an example to clarify your response.

Under U.S. antidumping legislation, what conditions must be met to prove that dumping is being practiced?

Which of the following refers to associations of producers that control supply and prices?

Which of the following, if True, would weaken the argument for exporting the company's products to China?

If 1 euro = $1.35 on June 4 and $1.40 on June 5, the value of the dollar has risen.

How can a local content law in Japan act as a barrier to a U.S.-based automobile manufacturing company that is interested in setting up a branch office in Tokyo?

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

In assessing a country's national competitive advantage, what is meant by factor conditions?

The number of strategic alliances among major companies has decreased significantly over the last decade.

Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue. Which of the following, if True, would strengthen this argument?

NAFTA regulates trade between the United States, Europe, and Japan.

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?

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

Strategic alliances give firms greater control over foreign activities than do agents and licensees.

The single largest trading partner of the United States is China.

Transportation costs have relatively little impact on a domestic firm's decision to go international, compared to other possible factors.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters