Question 1

Sometimes foreign companies have problems complying with stringent and often changing regulations and bureaucratic obstacles known as

Accepted Answer

A)  business practice laws. 
B)  cartels. 
C)  dumping. 
D)  local content laws. 
E)  local practices. 
A)  business practice laws. 
B)  cartels. 
C)  dumping. 
D)  local content laws. 
E)  local practices.

Question 2

When the value of one country's currency relative to that of another varies with market conditions,it has a(n)

Accepted Answer

A)  international exchange rate. 
B)  pegged exchange rate. 
C)  floating exchange rate. 
D)  various exchange rate. 
E)  fixed exchange rate. 
A)  international exchange rate. 
B)  pegged exchange rate. 
C)  floating exchange rate. 
D)  various exchange rate. 
E)  fixed exchange rate.

Question 3

Local-content laws cannot exist within a single country.

Accepted Answer

A) True 
 B)False

Question 4

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

Accepted Answer

A)  the target country's balance of trade. 
B)  demand for the wine. 
C)  legal aspects of the target country. 
D)  cultural aspects of the target country. 
E)  economic road blocks. 
A)  the target country's balance of trade. 
B)  demand for the wine. 
C)  legal aspects of the target country. 
D)  cultural aspects of the target country. 
E)  economic road blocks.

Question 5

If Trinidad could produce mangos that were cheaper and better tasting than any other country due to its climate,then it would have an absolute advantage over any other country.

Accepted Answer

A) True 
 B)False

Question 6

Local-content laws require that products sold in a particular country must be completely made in that country.

Accepted Answer

A) True 
 B)False

Question 7

What is a tariff?

Accepted Answer

A tariff i

Question 8

The major reasons why Mexico is a major manufacturing centre is

Accepted Answer

A)  cheap labour and low transportation costs. 
B)  elimination of quotas and tariffs and low tax rates. 
C)  low tax rates and cheap labour. 
D)  cheap labour and elimination of quotas and tariffs. 
E)  low transportation costs and low tax rates. 
A)  cheap labour and low transportation costs. 
B)  elimination of quotas and tariffs and low tax rates. 
C)  low tax rates and cheap labour. 
D)  cheap labour and elimination of quotas and tariffs. 
E)  low transportation costs and low tax rates.

Question 9

The world economy is fast becoming a single interdependent system.This process is called

Accepted Answer

A)  multinational exchange. 
B)  globalization. 
C)  international exchange. 
D)  balance of trade. 
E)  privatization. 
A)  multinational exchange. 
B)  globalization. 
C)  international exchange. 
D)  balance of trade. 
E)  privatization.

Question 10

"All this talk about a global economy is relevant only for big firms.My company is too small for that type of thinking." Agree or disagree with this statement,and support your position.

Accepted Answer

varies but should include a di

Question 11

What are the advantages and disadvantages associated with a multinational corporation?

Accepted Answer

- advantages: encouraged economic growth

Question 12

Other things being equal,an increase in Canadian foreign investment in other countries will improve Canada's balance of payments situation.

Accepted Answer

A) True 
 B)False

Question 13

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

Accepted Answer

A)  Determine if the company has the skills necessary to do business abroad 
B)  Determine if there is international demand for the product 
C)  Assess the business climate for receptivity to imports 
D)  Determine if the product needs to be modified to fit the foreign market 
E)  Conduct market research to determine potential sales 
A)  Determine if the company has the skills necessary to do business abroad 
B)  Determine if there is international demand for the product 
C)  Assess the business climate for receptivity to imports 
D)  Determine if the product needs to be modified to fit the foreign market 
E)  Conduct market research to determine potential sales

Question 14

When a country imports more than it exports it has a favourable balance of trade.

Accepted Answer

A) True 
 B)False

Question 15

Herald Inc.,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Accepted Answer

A)  multinational firm. 
B)  exporter. 
C)  independent agent. 
D)  purely domestic firm. 
E)  customs broker. 
A)  multinational firm. 
B)  exporter. 
C)  independent agent. 
D)  purely domestic firm. 
E)  customs broker.

Question 16

Algoma Treasures,a gift-wrap manufacturer,is considering expanding its business into the international market.What key question must have a positive answer before it begins international operations?

Accepted Answer

A)  Is there a demand for its products abroad? 
B)  Is there a favourable balance of trade? 
C)  What is the currency exchange rate? 
D)  Is there a favourable balance of payments? 
E)  Is local culture compatible? 
A)  Is there a demand for its products abroad? 
B)  Is there a favourable balance of trade? 
C)  What is the currency exchange rate? 
D)  Is there a favourable balance of payments? 
E)  Is local culture compatible?

Question 17

Why does the contemporary world economy revolve around three major marketplaces: North America,Europe,and Asia-Pacific?

Accepted Answer

These three geographic regions

Question 18

What is foreign direct investment?

Accepted Answer

Foreign direct investment is a

Question 19

Comparative advantage focuses on differences within one country,while absolute advantage focuses on differences between countries.

Accepted Answer

A) True 
 B)False

Question 20

What is an independent agent?

Accepted Answer

An independent agent is a fore

Sometimes foreign companies have problems complying with stringent and often changing regulations and bureaucratic obstacles known as

When the value of one country's currency relative to that of another varies with market conditions,it has a(n)

Local-content laws cannot exist within a single country.

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

If Trinidad could produce mangos that were cheaper and better tasting than any other country due to its climate,then it would have an absolute advantage over any other country.

Local-content laws require that products sold in a particular country must be completely made in that country.

What is a tariff?

The major reasons why Mexico is a major manufacturing centre is

The world economy is fast becoming a single interdependent system.This process is called

"All this talk about a global economy is relevant only for big firms.My company is too small for that type of thinking." Agree or disagree with this statement,and support your position.

What are the advantages and disadvantages associated with a multinational corporation?

Other things being equal,an increase in Canadian foreign investment in other countries will improve Canada's balance of payments situation.

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

When a country imports more than it exports it has a favourable balance of trade.

Herald Inc.,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Algoma Treasures,a gift-wrap manufacturer,is considering expanding its business into the international market.What key question must have a positive answer before it begins international operations?

Why does the contemporary world economy revolve around three major marketplaces: North America,Europe,and Asia-Pacific?

What is foreign direct investment?

Comparative advantage focuses on differences within one country,while absolute advantage focuses on differences between countries.

What is an independent agent?

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

Sometimes foreign companies have problems complying with stringent and often changing regulations and bureaucratic obstacles known as

When the value of one country's currency relative to that of another varies with market conditions,it has a(n)

Local-content laws cannot exist within a single country.

Clement is the owner of Dills Distillery,which makes and bottles fruit wine.In his planning to export the wine,Clement should consider all of the following except

If Trinidad could produce mangos that were cheaper and better tasting than any other country due to its climate,then it would have an absolute advantage over any other country.

Local-content laws require that products sold in a particular country must be completely made in that country.

What is a tariff?

The major reasons why Mexico is a major manufacturing centre is

The world economy is fast becoming a single interdependent system.This process is called

"All this talk about a global economy is relevant only for big firms.My company is too small for that type of thinking." Agree or disagree with this statement,and support your position.

What are the advantages and disadvantages associated with a multinational corporation?

Other things being equal,an increase in Canadian foreign investment in other countries will improve Canada's balance of payments situation.

Biltmore Corp.is involved in a planning process for doing business internationally.They have already determined that their product can be modified to fit foreign markets.What should they do next?

When a country imports more than it exports it has a favourable balance of trade.

Herald Inc.,a French newsprint manufacturer,is geared towards international markets but does not have specific domestic and international divisions.This firm is a(n)

Algoma Treasures,a gift-wrap manufacturer,is considering expanding its business into the international market.What key question must have a positive answer before it begins international operations?

Why does the contemporary world economy revolve around three major marketplaces: North America,Europe,and Asia-Pacific?

What is foreign direct investment?

Comparative advantage focuses on differences within one country,while absolute advantage focuses on differences between countries.

What is an independent agent?

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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