Question 1

What is protectionism? List and describe four protectionist measures.

Accepted Answer

Protectionism is the practice of protecting domestic businesses at the expense of free market competition.Protectionist measures include quotas,embargoes,tariffs,subsidies,local content laws,and business practice laws.Quotas are restrictions on the number of a certain type of product that can be imported into a country.An embargo is a government order banning exportation and/or importation of a particular product or all products from a particular country.Tariffs are taxes on imported products.Subsidies are government payments to help domestic businesses compete with foreign firms.Local content laws require that products sold in a particular country be at least partly made there.Finally,business practice laws govern business practices in a given country.

Question 2

Marketing a specific product to two or more countries is relatively easy since the same marketing strategy will usually work for both countries.

Accepted Answer

A) True 
 B)False  False

Question 3

What are the advantages of forming a strategic alliance?

Accepted Answer

- gaining access to new markets or customers
- sharing costs and risks 
- obtaining financing to supplement a firm's debt capacity

Question 4

Imports are

Accepted Answer

A)  services that are created in Canada and sold abroad. 
B)  products that are made or grown abroad and sold in Canada; services cannot be imported. 
C)  goods and services that are made or grown in Canada and sold abroad. 
D)  products that are made or grown in Canada and sold abroad; services cannot be imported. 
E)  goods and services that are made or grown abroad and sold in Canada. 
A)  services that are created in Canada and sold abroad. 
B)  products that are made or grown abroad and sold in Canada; services cannot be imported. 
C)  goods and services that are made or grown in Canada and sold abroad. 
D)  products that are made or grown in Canada and sold abroad; services cannot be imported. 
E)  goods and services that are made or grown abroad and sold in Canada.

Question 5

The balance of merchandise trade that Canada has experienced has been

Accepted Answer

A)  changing between favourable and unfavourable with about a seven-year cycle. 
B)  unfavourable since Confederation. 
C)  favourable for most of the last thirty years. 
D)  unfavourable for the last thirty years. 
E)  favourable since Confederation. 
A)  changing between favourable and unfavourable with about a seven-year cycle. 
B)  unfavourable since Confederation. 
C)  favourable for most of the last thirty years. 
D)  unfavourable for the last thirty years. 
E)  favourable since Confederation.

Question 6

A company selling fashionable clothing in country X is very successful in its home country,but it wants to start selling its products worldwide.The CEO thinks that a fashion-oriented market segment already exists in many countries,and that consumers would be receptive to the company's product line.Which of the following would strengthen the CEO's position?

Accepted Answer

A)  People in different parts of the world tend to embrace their own clothing fashions. 
B)  Consumers in different parts of the world have varied spending power. 
C)  Clothing fashions that originate in country X tend to appeal to different places in the world. 
D)  The company has accumulated extensive market data on consumers in country X. 
E)  The company has been in business for just a few years. 
A)  People in different parts of the world tend to embrace their own clothing fashions. 
B)  Consumers in different parts of the world have varied spending power. 
C)  Clothing fashions that originate in country X tend to appeal to different places in the world. 
D)  The company has accumulated extensive market data on consumers in country X. 
E)  The company has been in business for just a few years.

Question 7

Which of the following is correct with respect to absolute and comparative advantage?

Accepted Answer

A)  Brazilian coffee beans are a good example of comparative advantage. 
B)  Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C)  A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all)other countries. 
D)  All countries have a comparative advantage in some products. 
E)  All of these. 
A)  Brazilian coffee beans are a good example of comparative advantage. 
B)  Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries. 
C)  A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all)other countries. 
D)  All countries have a comparative advantage in some products. 
E)  All of these.

Question 8

Increased international demand for a nation's products will tend to make its currency stronger and will drive down the price of foreign goods.

Accepted Answer

A) True 
 B)False

Question 9

Toyota's opening of a major manufacturing plant in Georgetown,Kentucky,Exxon's expansion of an oil refinery in Thailand,and Texas Instruments' building of a semiconductor plant in Italy are good examples of

Accepted Answer

A)  foreign direct investments. 
B)  independent agents. 
C)  strategic alliances. 
D)  licensing arrangements. 
E)  branch offices. 
A)  foreign direct investments. 
B)  independent agents. 
C)  strategic alliances. 
D)  licensing arrangements. 
E)  branch offices.

Question 10

According to the World Bank,low-income countries are those with per capita income of less than US$1,005.

Accepted Answer

A) True 
 B)False

Question 11

In the modern era,floating exchange rates are the norm.

Accepted Answer

A) True 
 B)False

Question 12

Companies with international operations are concerned about exchange rate fluctuations because

Accepted Answer

A)  they may change international demand. 
B)  they may change domestic demand. 
C)  profit margins of international sales may be changed. 
D)  the cost of overseas operations may be changed. 
E)  all of these. 
A)  they may change international demand. 
B)  they may change domestic demand. 
C)  profit margins of international sales may be changed. 
D)  the cost of overseas operations may be changed. 
E)  all of these.

Question 13

The granting of subsidies is a specific illustration of the more general issue of protectionism.

Accepted Answer

A) True 
 B)False

Question 14

Estee Lauder launched an Italian cosmetics line that failed due to lack of familiarization with that foreign market.This is a prime example of the risk involved in doing business internationally.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Accepted Answer

A)  That nation has multinational companies. 
B)  That nation has an absolute advantage. 
C)  That nation has a positive balance of trade. 
D)  That nation has a negative balance of trade. 
E)  All of these. 
A)  That nation has multinational companies. 
B)  That nation has an absolute advantage. 
C)  That nation has a positive balance of trade. 
D)  That nation has a negative balance of trade. 
E)  All of these.

Question 16

Licensing arrangements are arrangements

Accepted Answer

A)  by a creator of a musical or artistic work to allow another person to use,produce,distribute,or market it for a fee or royalty. 
B)  by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty. 
C)  by a general contractor to allow international subcontractors to build a building for a fee or royalty. 
D)  by an owner of a process or product to allow another business to produce,distribute,or market it for a fee or royalty. 
E)  by an owner of a patent to allow another business to produce,distribute,or market the product covered by the patent for a fee or royalty. 
A)  by a creator of a musical or artistic work to allow another person to use,produce,distribute,or market it for a fee or royalty. 
B)  by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty. 
C)  by a general contractor to allow international subcontractors to build a building for a fee or royalty. 
D)  by an owner of a process or product to allow another business to produce,distribute,or market it for a fee or royalty. 
E)  by an owner of a patent to allow another business to produce,distribute,or market the product covered by the patent for a fee or royalty.

Question 17

The World Bank,an agency of the United Nations,uses per capita income as a measure to divide countries into one of four groups.Distinguish among the four groups and identify the countries in each group.

Accepted Answer

- High-income countries are those with p

Question 18

According to the World Economic Forum's global competitiveness ranking,the top three countries in 2011-2012 were

Accepted Answer

A)  China,India,and Ireland. 
B)  Switzerland,Singapore,and Sweden. 
C)  the U.S.,Canada,and Australia. 
D)  Ireland,Iceland,and Sweden. 
E)  China,Singapore,and Japan. 
A)  China,India,and Ireland. 
B)  Switzerland,Singapore,and Sweden. 
C)  the U.S.,Canada,and Australia. 
D)  Ireland,Iceland,and Sweden. 
E)  China,Singapore,and Japan.

Question 19

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

Accepted Answer

A)  franchisee. 
B)  multinational firm. 
C)  branch office. 
D)  international firm. 
E)  independent agent. 
A)  franchisee. 
B)  multinational firm. 
C)  branch office. 
D)  international firm. 
E)  independent agent.

Question 20

On Transparency International's "Corruption Perceptions Index," the least corrupt countries are Denmark,New Zealand,and Singapore.

Accepted Answer

A) True 
 B)False

What is protectionism? List and describe four protectionist measures.

Marketing a specific product to two or more countries is relatively easy since the same marketing strategy will usually work for both countries.

What are the advantages of forming a strategic alliance?

Imports are

The balance of merchandise trade that Canada has experienced has been

Which of the following is correct with respect to absolute and comparative advantage?

Increased international demand for a nation's products will tend to make its currency stronger and will drive down the price of foreign goods.

Toyota's opening of a major manufacturing plant in Georgetown,Kentucky,Exxon's expansion of an oil refinery in Thailand,and Texas Instruments' building of a semiconductor plant in Italy are good examples of

According to the World Bank,low-income countries are those with per capita income of less than US$1,005.

In the modern era,floating exchange rates are the norm.

Companies with international operations are concerned about exchange rate fluctuations because

The granting of subsidies is a specific illustration of the more general issue of protectionism.

Estee Lauder launched an Italian cosmetics line that failed due to lack of familiarization with that foreign market.This is a prime example of the risk involved in doing business internationally.

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Licensing arrangements are arrangements

The World Bank,an agency of the United Nations,uses per capita income as a measure to divide countries into one of four groups.Distinguish among the four groups and identify the countries in each group.

According to the World Economic Forum's global competitiveness ranking,the top three countries in 2011-2012 were

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

On Transparency International's "Corruption Perceptions Index," the least corrupt countries are Denmark,New Zealand,and Singapore.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

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Exam 5: The Global Context of Business

What is protectionism? List and describe four protectionist measures.

Marketing a specific product to two or more countries is relatively easy since the same marketing strategy will usually work for both countries.

What are the advantages of forming a strategic alliance?

Imports are

The balance of merchandise trade that Canada has experienced has been

Which of the following is correct with respect to absolute and comparative advantage?

Increased international demand for a nation's products will tend to make its currency stronger and will drive down the price of foreign goods.

Toyota's opening of a major manufacturing plant in Georgetown,Kentucky,Exxon's expansion of an oil refinery in Thailand,and Texas Instruments' building of a semiconductor plant in Italy are good examples of

According to the World Bank,low-income countries are those with per capita income of less than US$1,005.

In the modern era,floating exchange rates are the norm.

Companies with international operations are concerned about exchange rate fluctuations because

The granting of subsidies is a specific illustration of the more general issue of protectionism.

Estee Lauder launched an Italian cosmetics line that failed due to lack of familiarization with that foreign market.This is a prime example of the risk involved in doing business internationally.

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?

Licensing arrangements are arrangements

The World Bank,an agency of the United Nations,uses per capita income as a measure to divide countries into one of four groups.Distinguish among the four groups and identify the countries in each group.

According to the World Economic Forum's global competitiveness ranking,the top three countries in 2011-2012 were

Michael is going to sell his baby products abroad,and he is interested in having someone in the foreign country sell the product for him.Michael is most interested in working with a(n)

On Transparency International's "Corruption Perceptions Index," the least corrupt countries are Denmark,New Zealand,and Singapore.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters