Question 1

Why was the World Bank formed?

Accepted Answer

A)  Because developed nations realized that developing nations do not have any banks 
B)  Because national banks sometimes lack sufficient cash reserves 
C)  To act as a global policing service 
D)  To loan money to underdeveloped and developing countries 
E)  To help developed nations obtain money to start businesses 
A)  Because developed nations realized that developing nations do not have any banks 
B)  Because national banks sometimes lack sufficient cash reserves 
C)  To act as a global policing service 
D)  To loan money to underdeveloped and developing countries 
E)  To help developed nations obtain money to start businesses

Question 2

If Peru wants to purchase machine parts from a German company but does not have any euros,it will probably borrow the euros from which of the following institutions?

Accepted Answer

A)  International Monetary Fund 
B)  World Bank 
C)  Citicorp Bank 
D)  International Bank 
E)  World Trade Organization 
A)  International Monetary Fund 
B)  World Bank 
C)  Citicorp Bank 
D)  International Bank 
E)  World Trade Organization

Question 3

Define the terms "balance of trade" and "balance of payments." What is the difference between these terms? Why are they important measures?

Accepted Answer

A nation's balance of trade is the diffe

Question 4

A specific amount of money levied on each unit of a product brought into the country is a(n)

Accepted Answer

A)  ad valorem tariff. 
B)  value-added tariff. 
C)  fixed tariff. 
D)  protective tariff. 
E)  duty-free tariff. 
A)  ad valorem tariff. 
B)  value-added tariff. 
C)  fixed tariff. 
D)  protective tariff. 
E)  duty-free tariff.

Question 5

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

Accepted Answer

A) True 
 B)False

Question 6

The purchase of overseas production and marketing facilities is

Accepted Answer

A)  licensing. 
B)  contract manufacturing. 
C)  using an export agent. 
D)  a direct investment. 
E)  exporting. 
A)  licensing. 
B)  contract manufacturing. 
C)  using an export agent. 
D)  a direct investment. 
E)  exporting.

Question 7

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

Accepted Answer

A) True 
 B)False

Question 8

The effective translation of product names can be crucial to the success of a foreign marketing effort because of

Accepted Answer

A)  political barriers. 
B)  cultural barriers. 
C)  legal barriers. 
D)  export quotas. 
E)  body language. 
A)  political barriers. 
B)  cultural barriers. 
C)  legal barriers. 
D)  export quotas. 
E)  body language.

Question 9

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits,this is an example of a

Accepted Answer

A)  globalization strategy. 
B)  marketing strategy. 
C)  strategic alliance. 
D)  multinational strategy. 
E)  joint venture. 
A)  globalization strategy. 
B)  marketing strategy. 
C)  strategic alliance. 
D)  multinational strategy. 
E)  joint venture.

Question 10

Exporting is available only to large corporations.

Accepted Answer

A) True 
 B)False

Question 11

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

Accepted Answer

A)  Legal 
B)  Political 
C)  Cultural 
D)  Economic 
E)  Scientific 
A)  Legal 
B)  Political 
C)  Cultural 
D)  Economic 
E)  Scientific

Question 12

A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by the

Accepted Answer

A)  General Agreement on Tariffs and Trade. 
B)  North American Free Trade Agreement. 
C)  the World Bank. 
D)  the Eximbank. 
E)  the International Monetary Fund. 
A)  General Agreement on Tariffs and Trade. 
B)  North American Free Trade Agreement. 
C)  the World Bank. 
D)  the Eximbank. 
E)  the International Monetary Fund.

Question 13

Because many countries do not permit foreign companies to purchase and operate facilities in their countries,a company wishing to do business in such a country may share the business costs with a firm from the host country by forming a

Accepted Answer

A)  direct investment. 
B)  contract manufacturing arrangement. 
C)  corporation. 
D)  joint venture. 
E)  sole proprietorship. 
A)  direct investment. 
B)  contract manufacturing arrangement. 
C)  corporation. 
D)  joint venture. 
E)  sole proprietorship.

Question 14

The World Trade Organization agreements are the optional ground rules for international commerce.

Accepted Answer

A) True 
 B)False

Question 15

When Solar Tech,Inc. ,of Taos,New Mexico,sells thin film solar panels to a firm in Tokyo,Japan,Solar Tech

Accepted Answer

A)  is importing the panels. 
B)  is exporting the panels. 
C)  has an absolute advantage. 
D)  is increasing the trade deficit. 
E)  is making a big mistake. 
A)  is importing the panels. 
B)  is exporting the panels. 
C)  has an absolute advantage. 
D)  is increasing the trade deficit. 
E)  is making a big mistake.

Why was the World Bank formed?

If Peru wants to purchase machine parts from a German company but does not have any euros,it will probably borrow the euros from which of the following institutions?

Define the terms "balance of trade" and "balance of payments." What is the difference between these terms? Why are they important measures?

A specific amount of money levied on each unit of a product brought into the country is a(n)

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

The purchase of overseas production and marketing facilities is

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

The effective translation of product names can be crucial to the success of a foreign marketing effort because of

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits,this is an example of a

Exporting is available only to large corporations.

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by the

Because many countries do not permit foreign companies to purchase and operate facilities in their countries,a company wishing to do business in such a country may share the business costs with a firm from the host country by forming a

The World Trade Organization agreements are the optional ground rules for international commerce.

When Solar Tech,Inc. ,of Taos,New Mexico,sells thin film solar panels to a firm in Tokyo,Japan,Solar Tech

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

Why was the World Bank formed?

If Peru wants to purchase machine parts from a German company but does not have any euros,it will probably borrow the euros from which of the following institutions?

Define the terms "balance of trade" and "balance of payments." What is the difference between these terms? Why are they important measures?

A specific amount of money levied on each unit of a product brought into the country is a(n)

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

The purchase of overseas production and marketing facilities is

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

The effective translation of product names can be crucial to the success of a foreign marketing effort because of

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits,this is an example of a

Exporting is available only to large corporations.

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by the

Because many countries do not permit foreign companies to purchase and operate facilities in their countries,a company wishing to do business in such a country may share the business costs with a firm from the host country by forming a

The World Trade Organization agreements are the optional ground rules for international commerce.

When Solar Tech,Inc. ,of Taos,New Mexico,sells thin film solar panels to a firm in Tokyo,Japan,Solar Tech

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