Question 1

Culture is the complex set of values,behaviors,lifestyles,arts,beliefs,and institutions of a population that are passed on from generation to generation.

Accepted Answer

A) True 
 B)False  True

Question 2

The nations of Tweedle-dee and Tweedle-dum do not trust each other.Tweedle-dee is convinced that if it lowers its trade barriers,Tweedle-dum will not lower its barriers.Therefore,Tweedle-dee keeps its trade barriers high.This is an example of the ________ argument in favor of protectionism.

Accepted Answer

A)  threat of retaliation 
B)  infant-industry 
C)  national security 
D)  cheap foreign labor 
E)  absolute advantage 
A)  threat of retaliation 
B)  infant-industry 
C)  national security 
D)  cheap foreign labor 
E)  absolute advantage A

Question 3

Companies that sell a standardized product throughout the entire world follow a transnational strategy.

Accepted Answer

A) True 
 B)False  False

Question 4

Describe the theory of comparative advantage.

Accepted Answer

The theory of comparative advantage stat

Question 5

According to the theory of comparative advantage,if the U.S.and Mexico increase their trade with each other,the two countries will experience ________ standards of living.

Accepted Answer

A)  no change in 
B)  higher 
C)  rapidly decreasing 
D)  slightly lower 
E)  identical 
A)  no change in 
B)  higher 
C)  rapidly decreasing 
D)  slightly lower 
E)  identical

Question 6

GATT stands for ________ on Tariffs and Trade.

Accepted Answer

A)  General Agreement 
B)  General Argument 
C)  Global Agreement 
D)  Global Argument 
E)  Global Achievement 
A)  General Agreement 
B)  General Argument 
C)  Global Agreement 
D)  Global Argument 
E)  Global Achievement

Question 7

The U.S.total ban on importing Cuban cigars is an example of an embargo.

Accepted Answer

A) True 
 B)False

Question 8

Give an example of a subsidy used as a trade barrier.

Accepted Answer

Student answers will vary,but

Question 9

Aesthetics encompasses all of the following EXCEPT ________.

Accepted Answer

A)  etiquette 
B)  religion 
C)  language 
D)  protocol 
E)  customs 
A)  etiquette 
B)  religion 
C)  language 
D)  protocol 
E)  customs

Question 10

The cheap foreign labor argument for protectionism relates to ________.

Accepted Answer

A)  an undeveloped domestic industry's workers 
B)  a lower wage often earned by many foreign workers 
C)  a trading partner increasing trade barriers on work done by citizens 
D)  an industry critical to national security being protected from foreign workers 
E)  selling a product at a price below the price charged in the producing country 
A)  an undeveloped domestic industry's workers 
B)  a lower wage often earned by many foreign workers 
C)  a trading partner increasing trade barriers on work done by citizens 
D)  an industry critical to national security being protected from foreign workers 
E)  selling a product at a price below the price charged in the producing country

Question 11

What is the term for the sale of a domestically produced good in a foreign market?

Accepted Answer

A)  exporting 
B)  turnkey project 
C)  joint venture 
D)  licensing 
E)  franchising 
A)  exporting 
B)  turnkey project 
C)  joint venture 
D)  licensing 
E)  franchising

Question 12

A U.S.consumer electronics company has to shut down because it cannot compete against foreign manufacturers.For the U.S.,this is an example of a(n)________ of international trade.

Accepted Answer

A)  benefit 
B)  cost 
C)  theory 
D)  cause 
E)  incentive 
A)  benefit 
B)  cost 
C)  theory 
D)  cause 
E)  incentive

Question 13

The assigning of certain tasks,such as production or accounting,to an outside company or organization is called outsourcing.

Accepted Answer

A) True 
 B)False

Question 14

What is a valid explanation as to why some nations retain nonconvertible currency?

Accepted Answer

A)  desire to work with other countries 
B)  increased academic achievement 
C)  fear of capital flight 
D)  reliance on foreign loans 
E)  to avoid having to countertrade 
A)  desire to work with other countries 
B)  increased academic achievement 
C)  fear of capital flight 
D)  reliance on foreign loans 
E)  to avoid having to countertrade

Question 15

What are the effects of depreciation of the U.S.dollar?

Accepted Answer

Currency depreciation,a decrease in the

Question 16

The growing demand for biofuels in the U.S.that has led to a growing supply of soybeans from Brazil is an example of all of the following EXCEPT ________ economies.

Accepted Answer

A)  localized 
B)  globalized 
C)  interconnected 
D)  interdependent 
E)  international 
A)  localized 
B)  globalized 
C)  interconnected 
D)  interdependent 
E)  international

Question 17

The nation of North Xi has a ________ currency that cannot be exchanged in a foreign exchange market.

Accepted Answer

A)  countertrade 
B)  nonconvertible 
C)  flexible 
D)  fixed 
E)  freely floating 
A)  countertrade 
B)  nonconvertible 
C)  flexible 
D)  fixed 
E)  freely floating

Question 18

When Mu Manufacturing Co.exports their technological know-how in exchange for a fee,they are entering foreign markets through a ________.

Accepted Answer

A)  strategic alliance 
B)  turnkey project 
C)  franchise 
D)  wholly-owned subsidiary 
E)  licensing agreement 
A)  strategic alliance 
B)  turnkey project 
C)  franchise 
D)  wholly-owned subsidiary 
E)  licensing agreement

Question 19

A country's launching of a government-owned telecommunications satellite is an example of investing in ________.

Accepted Answer

A)  labor 
B)  natural resources 
C)  infrastructure 
D)  private capital 
E)  entrepreneurialism 
A)  labor 
B)  natural resources 
C)  infrastructure 
D)  private capital 
E)  entrepreneurialism

Question 20

U.S.farmers export canned sweet corn to Germany,which lowers the price to a German consumer by a few cents.The benefits to Germany of this international trade deal are ________.

Accepted Answer

A)  concentrated in the hands of a few German farmers 
B)  nonexistent 
C)  spread out among millions of German consumers 
D)  immeasurable 
E)  borne solely by the government 
A)  concentrated in the hands of a few German farmers 
B)  nonexistent 
C)  spread out among millions of German consumers 
D)  immeasurable 
E)  borne solely by the government

Exam 4: Business in a Global Economy

Culture is the complex set of values,behaviors,lifestyles,arts,beliefs,and institutions of a population that are passed on from generation to generation.

The nations of Tweedle-dee and Tweedle-dum do not trust each other.Tweedle-dee is convinced that if it lowers its trade barriers,Tweedle-dum will not lower its barriers.Therefore,Tweedle-dee keeps its trade barriers high.This is an example of the ________ argument in favor of protectionism.

Companies that sell a standardized product throughout the entire world follow a transnational strategy.

Describe the theory of comparative advantage.

According to the theory of comparative advantage,if the U.S.and Mexico increase their trade with each other,the two countries will experience ________ standards of living.

GATT stands for ________ on Tariffs and Trade.

The U.S.total ban on importing Cuban cigars is an example of an embargo.

Give an example of a subsidy used as a trade barrier.

Aesthetics encompasses all of the following EXCEPT ________.

The cheap foreign labor argument for protectionism relates to ________.

What is the term for the sale of a domestically produced good in a foreign market?

A U.S.consumer electronics company has to shut down because it cannot compete against foreign manufacturers.For the U.S.,this is an example of a(n)________ of international trade.

The assigning of certain tasks,such as production or accounting,to an outside company or organization is called outsourcing.

What is a valid explanation as to why some nations retain nonconvertible currency?

What are the effects of depreciation of the U.S.dollar?

The growing demand for biofuels in the U.S.that has led to a growing supply of soybeans from Brazil is an example of all of the following EXCEPT ________ economies.

The nation of North Xi has a ________ currency that cannot be exchanged in a foreign exchange market.

When Mu Manufacturing Co.exports their technological know-how in exchange for a fee,they are entering foreign markets through a ________.

A country's launching of a government-owned telecommunications satellite is an example of investing in ________.

U.S.farmers export canned sweet corn to Germany,which lowers the price to a German consumer by a few cents.The benefits to Germany of this international trade deal are ________.

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Economics and Banking

Ethics in Business

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Constructing an Effective Business Plan

Business Communications

Finding a Job

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