Question 1

Which of the following statements best describes decisions of the World Trade Organization in settling trade disputes?

Accepted Answer

A)  They are binding on all parties involved in the dispute. 
B)  They are only relevant to issues involving the World Bank. 
C)  They are applied only in cases where the WTO can show that both parties will benefit. 
D)  They are applied only on a voluntary basis. 
A)  They are binding on all parties involved in the dispute. 
B)  They are only relevant to issues involving the World Bank. 
C)  They are applied only in cases where the WTO can show that both parties will benefit. 
D)  They are applied only on a voluntary basis. A

Question 2

Global competition can keep prices low, which restrains the impact of inflation.

Accepted Answer

A) True 
 B)False  True

Question 3

One of the disadvantages of free trade is that there may be a loss of jobs in one country as jobs move to the country with the lowest paid workers.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following would be the most likely result if trade restrictions among nations were eliminated?

Accepted Answer

A)  Competition would increase, resulting in lower prices and increased choices for consumers. 
B)  The total volume of trade would decline. 
C)  All nations would experience an increase in their foreign debt. 
D)  Revenues from tariffs would increase. 
A)  Competition would increase, resulting in lower prices and increased choices for consumers. 
B)  The total volume of trade would decline. 
C)  All nations would experience an increase in their foreign debt. 
D)  Revenues from tariffs would increase.

Question 5

Which of the following strategies does McDonald's use to build its corporate presence worldwide?

Accepted Answer

A)  direct investment 
B)  outsourcing 
C)  franchising 
D)  licensing 
A)  direct investment 
B)  outsourcing 
C)  franchising 
D)  licensing

Question 6

As more people get the chance to get connected, better communication will likely feed economic growth.

Accepted Answer

A) True 
 B)False

Question 7

Governments tend to use protective tariffs to raise funds for their countries.

Accepted Answer

A) True 
 B)False

Question 8

What term is used when the total value of a country's exports is higher than the total value of its imports?

Accepted Answer

A)  countertrade 
B)  trade surplus 
C)  trade exchange 
D)  trade deficit 
A)  countertrade 
B)  trade surplus 
C)  trade exchange 
D)  trade deficit

Question 9

Many Canadian firms want to expand their sales in nations with high populations. What challenges will they face in dealing with these nations?

Accepted Answer

A)  Their governments strongly favour socialist economic policies. 
B)  Their citizens aren't as interested in material goods as Canadian citizens are. 
C)  The purchasing power of most citizens is very low. 
D)  The rate of economic growth is much slower than that of less populous nations. 
A)  Their governments strongly favour socialist economic policies. 
B)  Their citizens aren't as interested in material goods as Canadian citizens are. 
C)  The purchasing power of most citizens is very low. 
D)  The rate of economic growth is much slower than that of less populous nations.

Question 10

McDonald's is recognized as a universal brand having worldwide appeal. Which statement best describes how their franchises operate in different countries?

Accepted Answer

A)  They differ in terms of menu, but otherwise look and operate almost exactly like American franchises. 
B)  They are classic examples of strategic alliances. 
C)  They take local cultural differences into account in terms of their menu and other aspects of their operations. 
D)  They operate in much the same manner as franchises in the United States. 
A)  They differ in terms of menu, but otherwise look and operate almost exactly like American franchises. 
B)  They are classic examples of strategic alliances. 
C)  They take local cultural differences into account in terms of their menu and other aspects of their operations. 
D)  They operate in much the same manner as franchises in the United States.

Question 11

Describe the significant risks to a business of not maintaining quality control and social responsibility as it affects foreign outsourcing. Give an example of how that may or may not affect consumer purchasing.

Accepted Answer

Foreign outsourcing is contracting with

Question 12

Voluntary export restraints are the most popular way to protect domestic firms from foreign competition.

Accepted Answer

A) True 
 B)False

Question 13

Define countertrade and explain its impact on a nation's economy.

Accepted Answer

Companies typically engage in countertra

Question 14

Which of the following is an area of concern for ministers of the World Trade Organization (WTO)?

Accepted Answer

A)  the needs of farmers in Africa 
B)  maintaining the status quo 
C)  interest rates at the World Bank 
D)  piracy of intellectual property 
A)  the needs of farmers in Africa 
B)  maintaining the status quo 
C)  interest rates at the World Bank 
D)  piracy of intellectual property

Question 15

The World Bank influences the global economy by providing financial and technical advice to the governments of developing countries.

Accepted Answer

A) True 
 B)False

Question 16

A franchisor grants the rights for another firm to produce and market its products as long as the business agrees to specific operating requirements.

Accepted Answer

A) True 
 B)False

Question 17

When companies do business in developing nations and lack access to hard currencies, which of the following tools are these companies most likely to make extensive use of?

Accepted Answer

A)  foreign exchange 
B)  goodwill payment schedules 
C)  countertrade 
D)  accumulated bank reserves 
A)  foreign exchange 
B)  goodwill payment schedules 
C)  countertrade 
D)  accumulated bank reserves

Question 18

Many Canadian firms locate facilities in foreign markets in order to attract employees at lower wages.

Accepted Answer

A) True 
 B)False

Question 19

Joint ventures, as partnerships, allow companies to share the risks of new business development.

Accepted Answer

A) True 
 B)False

Question 20

When the American dollar began to show strength against a variety of world currencies, what effect did it have on American companies with a strong international presence?

Accepted Answer

A)  significant earnings increase 
B)  significant increase in American exports 
C)  significant earnings decrease 
D)  significant increase in trade surplus 
A)  significant earnings increase 
B)  significant increase in American exports 
C)  significant earnings decrease 
D)  significant increase in trade surplus

Which of the following statements best describes decisions of the World Trade Organization in settling trade disputes?

Global competition can keep prices low, which restrains the impact of inflation.

One of the disadvantages of free trade is that there may be a loss of jobs in one country as jobs move to the country with the lowest paid workers.

Which of the following would be the most likely result if trade restrictions among nations were eliminated?

Which of the following strategies does McDonald's use to build its corporate presence worldwide?

As more people get the chance to get connected, better communication will likely feed economic growth.

Governments tend to use protective tariffs to raise funds for their countries.

What term is used when the total value of a country's exports is higher than the total value of its imports?

Many Canadian firms want to expand their sales in nations with high populations. What challenges will they face in dealing with these nations?

McDonald's is recognized as a universal brand having worldwide appeal. Which statement best describes how their franchises operate in different countries?

Describe the significant risks to a business of not maintaining quality control and social responsibility as it affects foreign outsourcing. Give an example of how that may or may not affect consumer purchasing.

Voluntary export restraints are the most popular way to protect domestic firms from foreign competition.

Define countertrade and explain its impact on a nation's economy.

Which of the following is an area of concern for ministers of the World Trade Organization (WTO)?

The World Bank influences the global economy by providing financial and technical advice to the governments of developing countries.

A franchisor grants the rights for another firm to produce and market its products as long as the business agrees to specific operating requirements.

When companies do business in developing nations and lack access to hard currencies, which of the following tools are these companies most likely to make extensive use of?

Many Canadian firms locate facilities in foreign markets in order to attract employees at lower wages.

Joint ventures, as partnerships, allow companies to share the risks of new business development.

When the American dollar began to show strength against a variety of world currencies, what effect did it have on American companies with a strong international presence?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top-Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

Filters

Exam 4: The World Market-Place: Business Without Borders

Which of the following statements best describes decisions of the World Trade Organization in settling trade disputes?

Global competition can keep prices low, which restrains the impact of inflation.

One of the disadvantages of free trade is that there may be a loss of jobs in one country as jobs move to the country with the lowest paid workers.

Which of the following would be the most likely result if trade restrictions among nations were eliminated?

Which of the following strategies does McDonald's use to build its corporate presence worldwide?

As more people get the chance to get connected, better communication will likely feed economic growth.

Governments tend to use protective tariffs to raise funds for their countries.

What term is used when the total value of a country's exports is higher than the total value of its imports?

Many Canadian firms want to expand their sales in nations with high populations. What challenges will they face in dealing with these nations?

McDonald's is recognized as a universal brand having worldwide appeal. Which statement best describes how their franchises operate in different countries?

Describe the significant risks to a business of not maintaining quality control and social responsibility as it affects foreign outsourcing. Give an example of how that may or may not affect consumer purchasing.

Voluntary export restraints are the most popular way to protect domestic firms from foreign competition.

Define countertrade and explain its impact on a nation's economy.

Which of the following is an area of concern for ministers of the World Trade Organization (WTO)?

The World Bank influences the global economy by providing financial and technical advice to the governments of developing countries.

A franchisor grants the rights for another firm to produce and market its products as long as the business agrees to specific operating requirements.

When companies do business in developing nations and lack access to hard currencies, which of the following tools are these companies most likely to make extensive use of?

Many Canadian firms locate facilities in foreign markets in order to attract employees at lower wages.

Joint ventures, as partnerships, allow companies to share the risks of new business development.

When the American dollar began to show strength against a variety of world currencies, what effect did it have on American companies with a strong international presence?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top-Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

Filters