Question 1

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A)  Former Soviet Republics Trade Agreement. 
B)  Organization of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States. 
A)  Former Soviet Republics Trade Agreement. 
B)  Organization of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States.

Question 2

After the sharp drop in oil prices, the U.S. Congress considered enacting a tariff on imported oil. According to proponents, such a tariff would do all of the following except

Accepted Answer

A)  help reduce the federal budget deficit. 
B)  help strengthen the foreign trade deficit. 
C)  prop up a sagging domestic oil industry. 
D)  help cut the foreign trade deficit. 
E)  create a trade restriction. 
A)  help reduce the federal budget deficit. 
B)  help strengthen the foreign trade deficit. 
C)  prop up a sagging domestic oil industry. 
D)  help cut the foreign trade deficit. 
E)  create a trade restriction.

Question 3

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

Accepted Answer

A)  The International Monetary Fund 
B)  The Ex-Im Bank 
C)  The United States 
D)  The Federal Reserve 
E)  The Export-Import Bank of the United States 
A)  The International Monetary Fund 
B)  The Ex-Im Bank 
C)  The United States 
D)  The Federal Reserve 
E)  The Export-Import Bank of the United States

Question 4

In addition to political considerations, all of the following are reasons for trade restrictions except

Accepted Answer

A)  equalizing a nation's balance of payments. 
B)  protecting new and weak industries. 
C)  protecting the health of citizens. 
D)  protecting national security. 
E)  all of the above are correct. 
A)  equalizing a nation's balance of payments. 
B)  protecting new and weak industries. 
C)  protecting the health of citizens. 
D)  protecting national security. 
E)  all of the above are correct.

Question 5

Which of the following federal governmental agencies provides domestic and overseas commercial officers, country experts, and industry experts?

Accepted Answer

A)  STAT-USA/Internet 
B)  International Trade Administration 
C)  Advocacy Center 
D)  Small Business Administration 
E)  U.S. Department of Commerce 
A)  STAT-USA/Internet 
B)  International Trade Administration 
C)  Advocacy Center 
D)  Small Business Administration 
E)  U.S. Department of Commerce

Question 6

If the United States exports $100 worth of timber to Nigeria and imports $80 worth of diamonds, the United States has a(n)

Accepted Answer

A)  unfavorable balance of trade. 
B)  trade deficit. 
C)  trade surplus. 
D)  negative cash flow. 
E)  export slide. 
A)  unfavorable balance of trade. 
B)  trade deficit. 
C)  trade surplus. 
D)  negative cash flow. 
E)  export slide.

Question 7

What is a strategic alliance? What is its major advantage?

Accepted Answer

A strategic alliance is a formal agreeme

Question 8

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes to expand overseas. The company managers have been contemplating the best way to enter the foreign market. At first, the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty. The managers recognized, however, that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market. As such, the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.
After all the research was completed, the senior managers realized that they wanted to export their product. The managers decided that the transport carrier would notify them when the merchandise was shipped. This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Lynn Bernerd, Inc. Initially, the managers believed that ____ would be the best option for entering the foreign market.

Accepted Answer

A)  exporting 
B)  creating a joint venture 
C)  licensing 
D)  establishing a strategic alliance 
E)  a merger 
A)  exporting 
B)  creating a joint venture 
C)  licensing 
D)  establishing a strategic alliance 
E)  a merger

Question 9

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

Accepted Answer

A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry. 
A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry.

Question 10

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Accepted Answer

A)  A multilateral development bank 
B)  The Ex-Im Bank 
C)  An international bank 
D)  The WTO 
E)  The International Monetary Fund 
A)  A multilateral development bank 
B)  The Ex-Im Bank 
C)  An international bank 
D)  The WTO 
E)  The International Monetary Fund

Question 11

A reduction of the value of a nation's currency relative to the currencies of other countries is called

Accepted Answer

A)  a currency devaluation. 
B)  a reduced exchange rate. 
C)  a deficit money market. 
D)  a compressed economy. 
E)  none of the above. 
A)  a currency devaluation. 
B)  a reduced exchange rate. 
C)  a deficit money market. 
D)  a compressed economy. 
E)  none of the above.

Question 12

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the

Accepted Answer

A)  General Agreement on Tariffs and Trade. 
B)  European Economic Area. 
C)  European Free Trade Agreement. 
D)  European Union. 
E)  Euro Economic Alliance. 
A)  General Agreement on Tariffs and Trade. 
B)  European Economic Area. 
C)  European Free Trade Agreement. 
D)  European Union. 
E)  Euro Economic Alliance.

Question 13

The Ex-Im Bank does all of the following except

Accepted Answer

A)  act as an independent agency of the U.S. government. 
B)  assist in financing the exports of American firms. 
C)  cooperates with banks to help exporters offer credit to overseas customers. 
D)  extend and guarantee credit to overseas buyers of American goods. 
E)  guarantee long-term financing for exports. 
A)  act as an independent agency of the U.S. government. 
B)  assist in financing the exports of American firms. 
C)  cooperates with banks to help exporters offer credit to overseas customers. 
D)  extend and guarantee credit to overseas buyers of American goods. 
E)  guarantee long-term financing for exports.

Question 14

Identify the role of the Export-Import Bank of the United States in fostering international business.

Accepted Answer

The Export-Import Bank of the United Sta

Question 15

Which of the following scenarios would not be considered international business?

Accepted Answer

A)  A Chinese manufacturer sells toys to a large toy retailer in the United States. 
B)  Intel sells its processors to a computer manufacturer in Korea. 
C)  A large jewelry store in England purchases its diamonds from DeBeers in South Africa. 
D)  A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky. 
E)  French companies purchase crude oil from Saudi Arabia. 
A)  A Chinese manufacturer sells toys to a large toy retailer in the United States. 
B)  Intel sells its processors to a computer manufacturer in Korea. 
C)  A large jewelry store in England purchases its diamonds from DeBeers in South Africa. 
D)  A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky. 
E)  French companies purchase crude oil from Saudi Arabia.

Question 16

Which of the following functions is not performed by a trading company?

Accepted Answer

A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country 
A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country

Question 17

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in

Accepted Answer

A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading. 
A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading.

Question 18

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

Accepted Answer

A)  Export/import merchant agreement 
B)  Export/import agent agreement 
C)  Joint venture 
D)  Licensing 
E)  Multinational agreement 
A)  Export/import merchant agreement 
B)  Export/import agent agreement 
C)  Joint venture 
D)  Licensing 
E)  Multinational agreement

Question 19

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

Accepted Answer

A)  a joint venture. 
B)  a licensing agreement. 
C)  totally owned facilities. 
D)  exporting. 
E)  sales offices. 
A)  a joint venture. 
B)  a licensing agreement. 
C)  totally owned facilities. 
D)  exporting. 
E)  sales offices.

Question 20

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc., of the United States, Sony made a(n)

Accepted Answer

A)  countertrade with Columbia Pictures. 
B)  indirect investment in the United States. 
C)  direct investment in the United States. 
D)  strategic alliance with Columbia Pictures. 
E)  exporting agreement with the United States. 
A)  countertrade with Columbia Pictures. 
B)  indirect investment in the United States. 
C)  direct investment in the United States. 
D)  strategic alliance with Columbia Pictures. 
E)  exporting agreement with the United States.

Exam 3: A: Exploring Global Business

Eleven republics of the former Soviet Union are members of the

After the sharp drop in oil prices, the U.S. Congress considered enacting a tariff on imported oil. According to proponents, such a tariff would do all of the following except

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

In addition to political considerations, all of the following are reasons for trade restrictions except

Which of the following federal governmental agencies provides domestic and overseas commercial officers, country experts, and industry experts?

If the United States exports $100 worth of timber to Nigeria and imports $80 worth of diamonds, the United States has a(n)

What is a strategic alliance? What is its major advantage?

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

____ is an internationally supported bank that provides loans to developing countries to help them grow.

A reduction of the value of a nation's currency relative to the currencies of other countries is called

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the

The Ex-Im Bank does all of the following except

Identify the role of the Export-Import Bank of the United States in fostering international business.

Which of the following scenarios would not be considered international business?

Which of the following functions is not performed by a trading company?

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc., of the United States, Sony made a(n)

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

Filters