Question 1

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

Accepted Answer

A)  members of the Dow Jones Industrial Average. 
B)  global trading companies. 
C)  internationally owned facilities. 
D)  multinational enterprises. 
E)  foreign-domestic corporations. 
A)  members of the Dow Jones Industrial Average. 
B)  global trading companies. 
C)  internationally owned facilities. 
D)  multinational enterprises. 
E)  foreign-domestic corporations.

Question 2

U.S.exports to developing and newly industrialized countries

Accepted Answer

A)  have remained stable. 
B)  have declined in recent years. 
C)  are on the rise. 
D)  are prohibited by the U.S.government. 
E)  were scheduled to begin in 2009. 
A)  have remained stable. 
B)  have declined in recent years. 
C)  are on the rise. 
D)  are prohibited by the U.S.government. 
E)  were scheduled to begin in 2009.

Question 3

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 4

​Apple is an example of a company that makes products using international resources.This company is an example of international

Accepted Answer

A)  ​interconnectedness and independence. 
B)  ​cooperation. 
C)  ​friction. 
D)  ​economic derailing. 
A)  ​interconnectedness and independence. 
B)  ​cooperation. 
C)  ​friction. 
D)  ​economic derailing.

Question 5

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

Accepted Answer

A)  A multilateral development bank 
B)  The International Development Bank 
C)  An international bank 
D)  The Federal Reserve 
E)  The International Monetary Fund 
A)  A multilateral development bank 
B)  The International Development Bank 
C)  An international bank 
D)  The Federal Reserve 
E)  The International Monetary Fund

Question 6

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Accepted Answer

A)  exporting. 
B)  shipping. 
C)  importing. 
D)  expelling. 
E)  dumping. 
A)  exporting. 
B)  shipping. 
C)  importing. 
D)  expelling. 
E)  dumping.

Question 7

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 8

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Accepted Answer

A)  infant-industry argument. 
B)  goal of equalizing the nation's balance of payments. 
C)  national self-sufficiency argument. 
D)  goal of protecting the health of citizens. 
E)  goals of retaliating for another nation's trade restrictions. 
A)  infant-industry argument. 
B)  goal of equalizing the nation's balance of payments. 
C)  national self-sufficiency argument. 
D)  goal of protecting the health of citizens. 
E)  goals of retaliating for another nation's trade restrictions.

Question 9

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 10

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

Accepted Answer

A)  strategic alliance. 
B)  licensing agreement. 
C)  exporting agency. 
D)  trading company. 
E)  countertrade. 
A)  strategic alliance. 
B)  licensing agreement. 
C)  exporting agency. 
D)  trading company. 
E)  countertrade.

Question 11

Thomas Bernerd,Inc.Thomas 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 Thomas Bernerd,Inc.Which of the following options is not one of the steps needed for entering an international market?

Accepted Answer

A)  Contact local government to see if taxes on trade can be waived. 
B)  Establish an overseas distribution network. 
C)  Set export prices and payment terms,methods,and techniques. 
D)  Identify key foreign markets for the product. 
E)  Identify exportable products. 
A)  Contact local government to see if taxes on trade can be waived. 
B)  Establish an overseas distribution network. 
C)  Set export prices and payment terms,methods,and techniques. 
D)  Identify key foreign markets for the product. 
E)  Identify exportable products.

Question 12

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

Accepted Answer

A)  an overall favorable balance of trade. 
B)  an overall unfavorable balance of trade. 
C)  a favorable balance of trade with Jamaica. 
D)  neither a favorable nor an unfavorable balance of trade with Jamaica. 
E)  an unfavorable balance of trade with Jamaica. 
A)  an overall favorable balance of trade. 
B)  an overall unfavorable balance of trade. 
C)  a favorable balance of trade with Jamaica. 
D)  neither a favorable nor an unfavorable balance of trade with Jamaica. 
E)  an unfavorable balance of trade with Jamaica.

Question 13

How was the World Trade Organization (WTO)created? Why was it established?

Accepted Answer

The World Trade Organization (WTO)was cr

Question 14

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

Accepted Answer

A)  He would argue that by encouraging competition with trade restrictions,prices are likely to decrease. 
B)  He would argue that restrictions would cause greater competition and therefore lead to higher prices. 
C)  He would say that trade restrictions have no impact on prices,but they do restrict consumers' choices. 
D)  He would say that restrictions reduce competition and therefore cause an increase in prices. 
E)  He would argue that trade restrictions increase prices because they break up domestic monopolies. 
A)  He would argue that by encouraging competition with trade restrictions,prices are likely to decrease. 
B)  He would argue that restrictions would cause greater competition and therefore lead to higher prices. 
C)  He would say that trade restrictions have no impact on prices,but they do restrict consumers' choices. 
D)  He would say that restrictions reduce competition and therefore cause an increase in prices. 
E)  He would argue that trade restrictions increase prices because they break up domestic monopolies.

Question 15

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)  embargo. 
B)  stoppage. 
C)  stay. 
D)  closure. 
E)  barricade. 
A)  embargo. 
B)  stoppage. 
C)  stay. 
D)  closure. 
E)  barricade.

Question 16

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Accepted Answer

A)  License the company's brand name and products to foreign manufacturers. 
B)  Contact Sears World Trade to find foreign consumers. 
C)  Open new facilities around the world. 
D)  Form a joint venture with a complementary company in a foreign country. 
E)  Sell the company's products to an export-import merchant. 
A)  License the company's brand name and products to foreign manufacturers. 
B)  Contact Sears World Trade to find foreign consumers. 
C)  Open new facilities around the world. 
D)  Form a joint venture with a complementary company in a foreign country. 
E)  Sell the company's products to an export-import merchant.

Question 17

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Accepted Answer

A) True 
 B)False

Question 18

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A)  Strategic alliance 
B)  Totally owned facilities 
C)  Multinational firm 
D)  Joint ventures 
E)  Exporting 
A)  Strategic alliance 
B)  Totally owned facilities 
C)  Multinational firm 
D)  Joint ventures 
E)  Exporting

Question 20

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n)____ agreement.

Accepted Answer

A)  exporting 
B)  strategic alliance 
C)  licensing 
D)  countertrade 
E)  bill of lading 
A)  exporting 
B)  strategic alliance 
C)  licensing 
D)  countertrade 
E)  bill of lading

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

U.S.exports to developing and newly industrialized countries

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Apple is an example of a company that makes products using international resources.This company is an example of international

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

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

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

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

How was the World Trade Organization (WTO)created? Why was it established?

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

A complete halt to trading with a particular nation or in a particular product is called a(n)

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Which of the following represents the highest level of involvement in international business?

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n)____ agreement.

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

Exam 3: Global Business

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

U.S.exports to developing and newly industrialized countries

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

​Apple is an example of a company that makes products using international resources.This company is an example of international

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

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

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

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

How was the World Trade Organization (WTO)created? Why was it established?

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

A complete halt to trading with a particular nation or in a particular product is called a(n)

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Which of the following represents the highest level of involvement in international business?

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n)____ agreement.

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

Apple is an example of a company that makes products using international resources.This company is an example of international