Question 1

Which of the following provides exclusive rights to produce a product for another firm?

Accepted Answer

A)  Licensing arrangement 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Independent agent 
E)  Branch office 
A)  Licensing arrangement 
B)  Strategic alliance 
C)  Foreign direct investment 
D)  Independent agent 
E)  Branch office

Question 2

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Accepted Answer

A)  Floating 
B)  Indexed 
C)  Fixed 
D)  Adjusted 
E)  Deflated 
A)  Floating 
B)  Indexed 
C)  Fixed 
D)  Adjusted 
E)  Deflated

Question 3

Cultural values and beliefs are often unspoken.

Accepted Answer

A) True 
 B)False

Question 4

How does globalization of business benefit shareholders of an organization?

Accepted Answer

A)  Through easier and faster international travel 
B)  Through the elimination of diseases in developing nations 
C)  Through increased and improved profitability 
D)  Through lower taxes between trade partners 
E)  Through more distinct cultural heritage 
A)  Through easier and faster international travel 
B)  Through the elimination of diseases in developing nations 
C)  Through increased and improved profitability 
D)  Through lower taxes between trade partners 
E)  Through more distinct cultural heritage

Question 5

A comparative advantage exists when a country can produce something more cost effectively and/or of higher quality than any other country.

Accepted Answer

A) True 
 B)False

Question 6

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

Accepted Answer

When the value of a country's currency r

Question 7

What is the common currency for nations who are members of the European Union?

Accepted Answer

A)  Deutsche Mark 
B)  Euro 
C)  Dollar 
D)  Lira 
E)  Franc 
A)  Deutsche Mark 
B)  Euro 
C)  Dollar 
D)  Lira 
E)  Franc

Question 8

Which country is the world's largest marketplace and most stable economy?

Accepted Answer

A)  The United States 
B)  Canada 
C)  Germany 
D)  Japan 
E)  China 
A)  The United States 
B)  Canada 
C)  Germany 
D)  Japan 
E)  China

Question 9

A subsidy is a tax designed to help companies who import products.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a government payment to help a domestic business compete with foreign firms?

Accepted Answer

A)  Revenue tariff 
B)  Protectionist tariff 
C)  Import buy-back 
D)  Export rebate 
E)  Subsidy 
A)  Revenue tariff 
B)  Protectionist tariff 
C)  Import buy-back 
D)  Export rebate 
E)  Subsidy

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following BEST describes a positive trade balance?

Accepted Answer

A)  The economic condition in which a country's exports exceed its imports 
B)  The economic condition in which a country's imports exceed its exports 
C)  The economic condition in which a country's inflow of money exceeds its outflow 
D)  The economic condition in which a country's outflow of money exceeds its inflow 
E)  The economic condition in which a country's natural resources exceed its human resources 
A)  The economic condition in which a country's exports exceed its imports 
B)  The economic condition in which a country's imports exceed its exports 
C)  The economic condition in which a country's inflow of money exceeds its outflow 
D)  The economic condition in which a country's outflow of money exceeds its inflow 
E)  The economic condition in which a country's natural resources exceed its human resources

Question 14

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas for most of the world's countries?

Accepted Answer

A)  United Nations Development Assistance Plan 
B)  North American Free Trade Agreement 
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 Assistance Plan 
B)  North American Free Trade Agreement 
C)  General Agreement on Tariffs and Trade 
D)  General Agreement on Trade in Services 
E)  European Union Stability and Growth Pact

Question 15

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

Accepted Answer

A)  A franchise 
B)  An independent agency 
C)  A licensing arrangement 
D)  A foreign direct investment 
E)  A strategic alliance 
A)  A franchise 
B)  An independent agency 
C)  A licensing arrangement 
D)  A foreign direct investment 
E)  A strategic alliance

Question 16

Which of the following goals is a primary purpose of tariffs on imports?

Accepted Answer

A)  Maintain domestic competitiveness 
B)  Decrease exports 
C)  Increase imports 
D)  Subsidize domestic industry 
E)  Promote free trade 
A)  Maintain domestic competitiveness 
B)  Decrease exports 
C)  Increase imports 
D)  Subsidize domestic industry 
E)  Promote free trade

Question 17

Which of the following buys products in foreign markets and then sells them for resale in its home country?

Accepted Answer

A)  Importer 
B)  Exporter 
C)  Multinational firm 
D)  International firm 
E)  Direct foreign investor 
A)  Importer 
B)  Exporter 
C)  Multinational firm 
D)  International firm 
E)  Direct foreign investor

Question 18

Today,fixed exchange rates are the norm for most major nations of the world.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following denotes the international organization strategy of finding a partner in the country in which a company would like to conduct business?

Accepted Answer

A)  Opening a branch office 
B)  Developing a strategic alliance 
C)  Forming an independent agency 
D)  Outsourcing 
E)  Investing directly in a foreign venture 
A)  Opening a branch office 
B)  Developing a strategic alliance 
C)  Forming an independent agency 
D)  Outsourcing 
E)  Investing directly in a foreign venture

Question 20

Which of the following types of firms design,produce,and manufacture products in many nations?

Accepted Answer

A)  Multinational firms 
B)  Importing firms 
C)  Domestic firms 
D)  International firms 
E)  Exporting firms 
A)  Multinational firms 
B)  Importing firms 
C)  Domestic firms 
D)  International firms 
E)  Exporting firms

Which of the following provides exclusive rights to produce a product for another firm?

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Cultural values and beliefs are often unspoken.

How does globalization of business benefit shareholders of an organization?

A comparative advantage exists when a country can produce something more cost effectively and/or of higher quality than any other country.

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

What is the common currency for nations who are members of the European Union?

Which country is the world's largest marketplace and most stable economy?

A subsidy is a tax designed to help companies who import products.

Which of the following is a government payment to help a domestic business compete with foreign firms?

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

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Which of the following BEST describes a positive trade balance?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas for most of the world's countries?

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

Which of the following goals is a primary purpose of tariffs on imports?

Which of the following buys products in foreign markets and then sells them for resale in its home country?

Today,fixed exchange rates are the norm for most major nations of the world.

Which of the following denotes the international organization strategy of finding a partner in the country in which a company would like to conduct business?

Which of the following types of firms design,produce,and manufacture products in many nations?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 4: Understanding the Global Context of Business

Which of the following provides exclusive rights to produce a product for another firm?

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Cultural values and beliefs are often unspoken.

How does globalization of business benefit shareholders of an organization?

A comparative advantage exists when a country can produce something more cost effectively and/or of higher quality than any other country.

Explain why fluctuations in exchange rates have significant influence on the balance of trade.

What is the common currency for nations who are members of the European Union?

Which country is the world's largest marketplace and most stable economy?

A subsidy is a tax designed to help companies who import products.

Which of the following is a government payment to help a domestic business compete with foreign firms?

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

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Which of the following BEST describes a positive trade balance?

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas for most of the world's countries?

Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?

Which of the following goals is a primary purpose of tariffs on imports?

Which of the following buys products in foreign markets and then sells them for resale in its home country?

Today,fixed exchange rates are the norm for most major nations of the world.

Which of the following denotes the international organization strategy of finding a partner in the country in which a company would like to conduct business?

Which of the following types of firms design,produce,and manufacture products in many nations?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters