Question 1

Forming a joint venture with an existing foreign company offers all of the following advantages except

Accepted Answer

A)  joining an established firm. 
B)  requiring less commitment from all parties involved in the joint venture. 
C)  providing immediate marketing knowledge. 
D)  providing reduced risk. 
E)  providing control over product attributes. 
A)  joining an established firm. 
B)  requiring less commitment from all parties involved in the joint venture. 
C)  providing immediate marketing knowledge. 
D)  providing reduced risk. 
E)  providing control over product attributes.

Question 2

Landfall Service Landfall Service is a lawn furniture company that has been around for many years.It is known for its ability to produce furniture more efficiently than any other company in the nation.In truth,no other companies in any other nation come close.Landfall Service has shipped many of its products internationally.In fact,80 percent of its profits come from international sales.However,the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government,on the other hand,has imposed taxes on Landfall Service products due to the government wanting a piece of the pie.Landfall Service initially thought that these taxes were unfair because it was being singled out.However,after Landfall Service contacted the organization that had the power to mediate this situation,the furniture company realized that the taxation it was subjected to was legal and that there was nothing it could do about it.
-Refer to Landfall Service.What type of tax has the Brazilian government imposed on the company?

Accepted Answer

A)  Import duty 
B)  Embargo 
C)  Revenue tariff 
D)  Protective tariff 
E)  Nontariff barrier 
A)  Import duty 
B)  Embargo 
C)  Revenue tariff 
D)  Protective tariff 
E)  Nontariff barrier

Question 3

XYZ 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 XYZ 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 4

The International Trade Administration (ITA)offers assistance and information to help exporters.

Accepted Answer

A) True 
 B)False

Question 5

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Accepted Answer

A)  devalues 
B)  increases 
C)  balances 
D)  decreases 
E)  restricts 
A)  devalues 
B)  increases 
C)  balances 
D)  decreases 
E)  restricts

Question 6

What are some of the major sources of export assistance from the federal government?

Accepted Answer

Answers will vary.Some of the U.S.govern

Question 7

All of the following are reasons against having trade restrictions except

Accepted Answer

A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens. 
A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens.

Question 8

The Tokyo Round

Accepted Answer

A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports. 
A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports.

Question 9

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)  They will be faced with the highest demand ever. 
B)  They will become more competitive. 
C)  They will be put out of business because they cannot compete with the prices. 
D)  They will try to dump their toys in other countries. 
E)  Their revenues will decrease,but their long-term success will not be affected. 
A)  They will be faced with the highest demand ever. 
B)  They will become more competitive. 
C)  They will be put out of business because they cannot compete with the prices. 
D)  They will try to dump their toys in other countries. 
E)  Their revenues will decrease,but their long-term success will not be affected.

Question 10

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Accepted Answer

A)  monetary export control. 
B)  nontariff barrier. 
C)  currency devaluation. 
D)  currency control. 
E)  foreign-exchange control. 
A)  monetary export control. 
B)  nontariff barrier. 
C)  currency devaluation. 
D)  currency control. 
E)  foreign-exchange control.

Question 11

Why is balance of payments a much broader concept than balance of trade?

Accepted Answer

A nation's balance of payments is the to

Question 12

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion,it had a trade deficit.

Accepted Answer

A) True 
 B)False

Question 13

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

Accepted Answer

A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the answer choices. 
A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the answer choices.

Question 14

If Procter & Gamble and Reckitt & Colman,makers of Lysol,form a partnership to develop and distribute a disinfectant line of laundry detergent,the partnership would be a(n)

Accepted Answer

A)  corporation. 
B)  joint venture. 
C)  monopoly. 
D)  licensing agreement. 
E)  international alliance. 
A)  corporation. 
B)  joint venture. 
C)  monopoly. 
D)  licensing agreement. 
E)  international alliance.

Question 15

What are the Kennedy Round,the Tokyo Round,and the Uruguay Round?

Accepted Answer

A)  Amendments to the General Agreement on Tariffs and Trade 
B)  Negotiations sponsored by GATT to reduce trade restrictions 
C)  A series of disagreements among the members of GATT 
D)  World Trade Organization meetings to encourage trade 
E)  Political negotiations among many of the world's nations 
A)  Amendments to the General Agreement on Tariffs and Trade 
B)  Negotiations sponsored by GATT to reduce trade restrictions 
C)  A series of disagreements among the members of GATT 
D)  World Trade Organization meetings to encourage trade 
E)  Political negotiations among many of the world's nations

Question 16

​NAFTA member nations include those located in

Accepted Answer

A)  ​North America. 
B)  ​North Atlantic. 
C)  ​North Africa. 
D)  ​Northern Europe. 
A)  ​North America. 
B)  ​North Atlantic. 
C)  ​North Africa. 
D)  ​Northern Europe.

Question 17

Nordstrom sells designer suits made in Italy in its stores in the United States.Nordstrom is ____ suits.

Accepted Answer

A)  exporting 
B)  importing 
C)  trading 
D)  dumping 
E)  taxing 
A)  exporting 
B)  importing 
C)  trading 
D)  dumping 
E)  taxing

Question 18

Strategic alliances and ____ are very similar.

Accepted Answer

A)  trading companies 
B)  most-favored-nation status 
C)  licensing agreements 
D)  joint ventures 
E)  corporate mergers 
A)  trading companies 
B)  most-favored-nation status 
C)  licensing agreements 
D)  joint ventures 
E)  corporate mergers

Question 19

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

Accepted Answer

A)  trade deficit. 
B)  balance of payments. 
C)  unfavorable balance. 
D)  balance of trade. 
E)  favorable balance. 
A)  trade deficit. 
B)  balance of payments. 
C)  unfavorable balance. 
D)  balance of trade. 
E)  favorable balance.

Question 20

Terrance operates a very successful cold storage business in the United States and would like to establish a similar business in a foreign country so he is able to offer shipping between the United States and the other country with storage for the goods once shipped.He has studied several countries and has a few possibilities,but would like to work in one that will most likely result in the success of his business there.Which country has the most efficient,integrated,and dynamic economic relationship with the United States?

Accepted Answer

A)  Vietnam 
B)  China 
C)  Mexico 
D)  Canada 
A)  Vietnam 
B)  China 
C)  Mexico 
D)  Canada

Forming a joint venture with an existing foreign company offers all of the following advantages except

XYZ 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 XYZ Company is

The International Trade Administration (ITA)offers assistance and information to help exporters.

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

What are some of the major sources of export assistance from the federal government?

All of the following are reasons against having trade restrictions except

The Tokyo Round

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Why is balance of payments a much broader concept than balance of trade?

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion,it had a trade deficit.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

If Procter & Gamble and Reckitt & Colman,makers of Lysol,form a partnership to develop and distribute a disinfectant line of laundry detergent,the partnership would be a(n)

What are the Kennedy Round,the Tokyo Round,and the Uruguay Round?

NAFTA member nations include those located in

Nordstrom sells designer suits made in Italy in its stores in the United States.Nordstrom is ____ suits.

Strategic alliances and ____ are very similar.

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

Exploring the World of Business and Economics

Ethics and Social Responsibility in 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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

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Exam 3: Global Business

Forming a joint venture with an existing foreign company offers all of the following advantages except

XYZ 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 XYZ Company is

The International Trade Administration (ITA)offers assistance and information to help exporters.

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

What are some of the major sources of export assistance from the federal government?

All of the following are reasons against having trade restrictions except

The Tokyo Round

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Why is balance of payments a much broader concept than balance of trade?

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion,it had a trade deficit.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

If Procter & Gamble and Reckitt & Colman,makers of Lysol,form a partnership to develop and distribute a disinfectant line of laundry detergent,the partnership would be a(n)

What are the Kennedy Round,the Tokyo Round,and the Uruguay Round?

​NAFTA member nations include those located in

Nordstrom sells designer suits made in Italy in its stores in the United States.Nordstrom is ____ suits.

Strategic alliances and ____ are very similar.

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

Exploring the World of Business and Economics

Ethics and Social Responsibility in 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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters

NAFTA member nations include those located in