Question 1

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Accepted Answer

A) True 
 B)False

Question 2

Which organization created the classification of countries based on per capita income?

Accepted Answer

A)  the World Bank 
B)  the World Trade Organization 
C)  the International Monetary Fund 
D)  the European Union 
E)  the United Nations Economic and Social Council 
A)  the World Bank 
B)  the World Trade Organization 
C)  the International Monetary Fund 
D)  the European Union 
E)  the United Nations Economic and Social Council

Question 3

Which of the following refers to the situation when a country's imports exceed its exports?

Accepted Answer

A)  balance of payments 
B)  balance of trade 
C)  trade deficit 
D)  trade surplus 
E)  trade advantage 
A)  balance of payments 
B)  balance of trade 
C)  trade deficit 
D)  trade surplus 
E)  trade advantage

Question 4

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

Accepted Answer

A)  United Nations Development Assistant Plan 
B)  Fair Labor Standards Act 
C)  General Agreement on Tariffs and Trade 
D)  General Agreement on Trade in Services 
E)  European Union Stability and Growth Pact 
A)  United Nations Development Assistant Plan 
B)  Fair Labor Standards Act 
C)  General Agreement on Tariffs and Trade 
D)  General Agreement on Trade in Services 
E)  European Union Stability and Growth Pact

Question 5

How might the imposition of a tariff on cell phones impact Nokia's exportation of cell phones to the United States?

Accepted Answer

A tariff is a tax on imported products.

Question 6

Which of the following statements, if True, would support the president's argument for the global expansion of Fembooks through the Internet?

Accepted Answer

A)  Payment preferences vary from country to country. Europeans prefer using debit cards over using credit cards due to the high rate of credit card theft. 
B)  Demographic targeting is more easily accomplished on the Internet than in other forms of advertising. 
C)  The exchange rate for different currencies can be an issue for global businesses. The use of local currency may increase rates of purchase, but presents challenges for exchange and shipping. 
D)  Advertising and sales laws (and accompanying taxes) vary from country to country. 
E)  Local import and export laws would need to be researched and followed. 
A)  Payment preferences vary from country to country. Europeans prefer using debit cards over using credit cards due to the high rate of credit card theft. 
B)  Demographic targeting is more easily accomplished on the Internet than in other forms of advertising. 
C)  The exchange rate for different currencies can be an issue for global businesses. The use of local currency may increase rates of purchase, but presents challenges for exchange and shipping. 
D)  Advertising and sales laws (and accompanying taxes) vary from country to country. 
E)  Local import and export laws would need to be researched and followed.

Question 7

Suppose that the United States requires that products sold here be at least 51 percent made here. Which of the following denotes this type of policy?

Accepted Answer

A)  business practice law 
B)  deregulation law 
C)  business practice law. 
D)  strategic alliance 
E)  local content law 
A)  business practice law 
B)  deregulation law 
C)  business practice law. 
D)  strategic alliance 
E)  local content law

Question 8

Discuss the differences between absolute advantage and comparative advantage.

Accepted Answer

An absolute advantage exists when a coun

Question 9

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Accepted Answer

A) True 
 B)False

Question 10

What typically happens to a country's balance of trade as the value of its currency falls?

Accepted Answer

A)  It improves. 
B)  It declines. 
C)  It remains the same. 
D)  It fluctuates drastically. 
E)  It fluctuates moderately. 
A)  It improves. 
B)  It declines. 
C)  It remains the same. 
D)  It fluctuates drastically. 
E)  It fluctuates moderately.

Question 11

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

Accepted Answer

A)  fair trade 
B)  balanced trade 
C)  free trade 
D)  market liberalism 
E)  protectionism 
A)  fair trade 
B)  balanced trade 
C)  free trade 
D)  market liberalism 
E)  protectionism

Question 12

Why should companies conducting international operations be concerned about exchange rate fluctuations?

Accepted Answer

Changes in exchange rates affect oversea

Question 13

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

Accepted Answer

A)  absolute advantage 
B)  national competitive advantage 
C)  comparative advantage 
D)  monopolistic advantage 
E)  resource advantage 
A)  absolute advantage 
B)  national competitive advantage 
C)  comparative advantage 
D)  monopolistic advantage 
E)  resource advantage

Question 14

Citronel's CEO thinks that a market segment already exists worldwide that will be receptive to Citronel's product line. Which of the following, if True, would strengthen the CEO's position?

Accepted Answer

A)  People in different parts of the world tend to embrace their own clothing fashions. 
B)  Consumers in different parts of the world have varied spending power. 
C)  Clothing fashions that originate in France tend to appeal to different places in the world. 
D)  Citronel has accumulated extensive market data on French consumers. 
E)  Citronel has been in business for only a few years. 
A)  People in different parts of the world tend to embrace their own clothing fashions. 
B)  Consumers in different parts of the world have varied spending power. 
C)  Clothing fashions that originate in France tend to appeal to different places in the world. 
D)  Citronel has accumulated extensive market data on French consumers. 
E)  Citronel has been in business for only a few years.

Question 15

How might the international market specifically affect the success of a local coffee shop in Cleveland, Ohio?

Accepted Answer

The price and availability of coffee bea

Question 16

Which of the following resulted from NAFTA?

Accepted Answer

A)  Companies from other countries, such as Japan, have made fewer business investments in North America. 
B)  U.S. exports to Mexico have decreased. 
C)  U.S. exports to Mexico have increased. 
D)  More jobs have been created than what was originally predicted. 
E)  More U.S. jobs were eliminated than what was originally predicted. 
A)  Companies from other countries, such as Japan, have made fewer business investments in North America. 
B)  U.S. exports to Mexico have decreased. 
C)  U.S. exports to Mexico have increased. 
D)  More jobs have been created than what was originally predicted. 
E)  More U.S. jobs were eliminated than what was originally predicted.

Question 17

What is a difference between an international firm and a multinational firm?

Accepted Answer

A)  Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation. 
B)  International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation. 
C)  International and multinational firms are the same thing. 
D)  Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market. 
E)  International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market. 
A)  Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation. 
B)  International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation. 
C)  International and multinational firms are the same thing. 
D)  Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market. 
E)  International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market.

Question 18

How has globalization affected the potential for higher standards of living within the world?

Accepted Answer

By bringing new jobs and hence more mone

Question 19

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling, plastics-based paint. Both companies intend to share the research costs and any profits. What is 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 20

Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market, and goes on to argue that this will be advantageous to the company. Which of the following, if True, would strengthen this argument?

Accepted Answer

A)  Consumers in many countries have limited resources with which they can purchase entertainment. 
B)  Consumers in many countries are wary of what they perceive as American cultural imperialism. 
C)  Contractual agreements usually require the foreign partner to display the originating firm's brand as prominently as possible. 
D)  Contractual agreements initiated by an American company often make for contentious relationships with the foreign partner. 
E)  Foreign consumers briefly resist cultural imperialism but then quickly embrace American cultural products. 
A)  Consumers in many countries have limited resources with which they can purchase entertainment. 
B)  Consumers in many countries are wary of what they perceive as American cultural imperialism. 
C)  Contractual agreements usually require the foreign partner to display the originating firm's brand as prominently as possible. 
D)  Contractual agreements initiated by an American company often make for contentious relationships with the foreign partner. 
E)  Foreign consumers briefly resist cultural imperialism but then quickly embrace American cultural products.

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Which organization created the classification of countries based on per capita income?

Which of the following refers to the situation when a country's imports exceed its exports?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

How might the imposition of a tariff on cell phones impact Nokia's exportation of cell phones to the United States?

Which of the following statements, if True, would support the president's argument for the global expansion of Fembooks through the Internet?

Suppose that the United States requires that products sold here be at least 51 percent made here. Which of the following denotes this type of policy?

Discuss the differences between absolute advantage and comparative advantage.

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

What typically happens to a country's balance of trade as the value of its currency falls?

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

Why should companies conducting international operations be concerned about exchange rate fluctuations?

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

Citronel's CEO thinks that a market segment already exists worldwide that will be receptive to Citronel's product line. Which of the following, if True, would strengthen the CEO's position?

How might the international market specifically affect the success of a local coffee shop in Cleveland, Ohio?

Which of the following resulted from NAFTA?

What is a difference between an international firm and a multinational firm?

How has globalization affected the potential for higher standards of living within the world?

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling, plastics-based paint. Both companies intend to share the research costs and any profits. What is this an example of?

Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market, and goes on to argue that this will be advantageous to the company. Which of the following, if True, would strengthen this argument?

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

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Which organization created the classification of countries based on per capita income?

Which of the following refers to the situation when a country's imports exceed its exports?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

How might the imposition of a tariff on cell phones impact Nokia's exportation of cell phones to the United States?

Which of the following statements, if True, would support the president's argument for the global expansion of Fembooks through the Internet?

Suppose that the United States requires that products sold here be at least 51 percent made here. Which of the following denotes this type of policy?

Discuss the differences between absolute advantage and comparative advantage.

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

What typically happens to a country's balance of trade as the value of its currency falls?

Which of the following denotes the practice of protecting domestic business at the expense of free market competition?

Why should companies conducting international operations be concerned about exchange rate fluctuations?

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

Citronel's CEO thinks that a market segment already exists worldwide that will be receptive to Citronel's product line. Which of the following, if True, would strengthen the CEO's position?

How might the international market specifically affect the success of a local coffee shop in Cleveland, Ohio?

Which of the following resulted from NAFTA?

What is a difference between an international firm and a multinational firm?

How has globalization affected the potential for higher standards of living within the world?

The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics Company in Italy to create a nonpeeling, plastics-based paint. Both companies intend to share the research costs and any profits. What is this an example of?

Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market, and goes on to argue that this will be advantageous to the company. Which of the following, if True, would strengthen this argument?

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