Question 1

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

Accepted Answer

A) True 
 B)False  True

Question 2

The primary problem with a trade deficit is

Accepted Answer

A)  that a country is exporting more than it is importing. 
B)  that more cash is leaving the country than is entering. 
C)  that a country is spending more than saving. 
D)  that a country is saving more than spending. 
E)  the large amount of export taxes. 
A)  that a country is exporting more than it is importing. 
B)  that more cash is leaving the country than is entering. 
C)  that a country is spending more than saving. 
D)  that a country is saving more than spending. 
E)  the large amount of export taxes. B

Question 3

When a nation imports more than it exports,it has a positive balance of trade.

Accepted Answer

A) True 
 B)False  False

Question 4

An absolute advantage exists when a country has a monopoly on a natural resource.

Accepted Answer

A) True 
 B)False

Question 5

Only small firms are mobile enough to engage in international business.

Accepted Answer

A) True 
 B)False

Question 6

Direct investment is the least risky and least expensive way to participate in foreign trade.

Accepted Answer

A) True 
 B)False

Question 7

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Accepted Answer

A) True 
 B)False

Question 8

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

Accepted Answer

A)  currency. 
B)  gold. 
C)  the metric system. 
D)  bartering. 
E)  color coding. 
A)  currency. 
B)  gold. 
C)  the metric system. 
D)  bartering. 
E)  color coding.

Question 9

The balance of payments includes all the following except

Accepted Answer

A)  a country's balance of trade. 
B)  foreign investments. 
C)  domestic investments. 
D)  tourist expenditures. 
E)  foreign aid and military expenditures. 
A)  a country's balance of trade. 
B)  foreign investments. 
C)  domestic investments. 
D)  tourist expenditures. 
E)  foreign aid and military expenditures.

Question 10

Which countries were merged into one market by NAFTA?

Accepted Answer

A)  Canada,the U.S. ,and Mexico 
B)  North America and South America 
C)  Mexico,the U.S. ,and Brazil 
D)  Canada and the U.S. 
E)  Canada and Mexico 
A)  Canada,the U.S. ,and Mexico 
B)  North America and South America 
C)  Mexico,the U.S. ,and Brazil 
D)  Canada and the U.S. 
E)  Canada and Mexico

Question 11

When a country devalues its currency,this encourages the sale of its

Accepted Answer

A)  imports. 
B)  domestic goods to foreign countries. 
C)  international goods. 
D)  international services. 
E)  debts. 
A)  imports. 
B)  domestic goods to foreign countries. 
C)  international goods. 
D)  international services. 
E)  debts.

Question 12

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

Accepted Answer

A)  quota. 
B)  exchange control. 
C)  trade deficit. 
D)  embargo. 
E)  free trade zone. 
A)  quota. 
B)  exchange control. 
C)  trade deficit. 
D)  embargo. 
E)  free trade zone.

Question 13

What are the key issues that need to be considered in determining global expansion?

Accepted Answer

Audiotech needs to assess whether there

Question 14

A major advantage of utilizing an export agent is that the company does not have to deal with

Accepted Answer

A)  a middleman. 
B)  raising prices. 
C)  foreign currencies and red tape. 
D)  discounts. 
E)  increasing volume. 
A)  a middleman. 
B)  raising prices. 
C)  foreign currencies and red tape. 
D)  discounts. 
E)  increasing volume.

Question 15

The difference between the flow of money into and out of a country is called its

Accepted Answer

A)  balance of trade. 
B)  imbalance of trade. 
C)  balance of payments. 
D)  trade payment balance. 
E)  exchange rate. 
A)  balance of trade. 
B)  imbalance of trade. 
C)  balance of payments. 
D)  trade payment balance. 
E)  exchange rate.

Question 16

Which of the following is not something that the International Monetary Fund does?

Accepted Answer

A)  Provides short-term loans to member countries 
B)  Functions as a world central bank 
C)  Eliminates trade barriers between nations 
D)  Fosters international financial cooperation 
E)  Provides individual home and auto loans 
A)  Provides short-term loans to member countries 
B)  Functions as a world central bank 
C)  Eliminates trade barriers between nations 
D)  Fosters international financial cooperation 
E)  Provides individual home and auto loans

Question 17

McDonald's had to adapt its menus to reflect local preferences in India because

Accepted Answer

A)  Indians do not like hamburgers. 
B)  all Indians are vegetarians. 
C)  Indians only like to eat diet food. 
D)  cows are sacred to many Indians,and many are vegetarians. 
E)  McDonald's had a bad reputation before opening franchises in India. 
A)  Indians do not like hamburgers. 
B)  all Indians are vegetarians. 
C)  Indians only like to eat diet food. 
D)  cows are sacred to many Indians,and many are vegetarians. 
E)  McDonald's had a bad reputation before opening franchises in India.

Question 18

Globalization involves standardizing products for the whole world as if it were a single entity.

Accepted Answer

A) True 
 B)False

Question 19

What is the primary reason that the owners of Audiotech are considering global expansion?

Accepted Answer

A)  No local interest in the company's products 
B)  Stagnating growth 
C)  The family is moving abroad 
D)  Cheaper labor 
E)  Declining sales 
A)  No local interest in the company's products 
B)  Stagnating growth 
C)  The family is moving abroad 
D)  Cheaper labor 
E)  Declining sales

Question 20

Why does direct investment have a greater degree of commitment than a countertrade agreement?

Accepted Answer

Countertrade agreements merely involve b

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

The primary problem with a trade deficit is

When a nation imports more than it exports,it has a positive balance of trade.

An absolute advantage exists when a country has a monopoly on a natural resource.

Only small firms are mobile enough to engage in international business.

Direct investment is the least risky and least expensive way to participate in foreign trade.

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

The balance of payments includes all the following except

Which countries were merged into one market by NAFTA?

When a country devalues its currency,this encourages the sale of its

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

What are the key issues that need to be considered in determining global expansion?

A major advantage of utilizing an export agent is that the company does not have to deal with

The difference between the flow of money into and out of a country is called its

Which of the following is not something that the International Monetary Fund does?

McDonald's had to adapt its menus to reflect local preferences in India because

Globalization involves standardizing products for the whole world as if it were a single entity.

What is the primary reason that the owners of Audiotech are considering global expansion?

Why does direct investment have a greater degree of commitment than a countertrade agreement?

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 3: Business in a Borderless World

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

The primary problem with a trade deficit is

When a nation imports more than it exports,it has a positive balance of trade.

An absolute advantage exists when a country has a monopoly on a natural resource.

Only small firms are mobile enough to engage in international business.

Direct investment is the least risky and least expensive way to participate in foreign trade.

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

The balance of payments includes all the following except

Which countries were merged into one market by NAFTA?

When a country devalues its currency,this encourages the sale of its

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

What are the key issues that need to be considered in determining global expansion?

A major advantage of utilizing an export agent is that the company does not have to deal with

The difference between the flow of money into and out of a country is called its

Which of the following is not something that the International Monetary Fund does?

McDonald's had to adapt its menus to reflect local preferences in India because

Globalization involves standardizing products for the whole world as if it were a single entity.

What is the primary reason that the owners of Audiotech are considering global expansion?

Why does direct investment have a greater degree of commitment than a countertrade agreement?

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters