Question 1

Lack of knowledge of foreign customs has lead most Canadian companies doing business in Japan to select what form of international organization?

Accepted Answer

A)  Strategic alliances 
B)  Licensing arrangements 
C)  Independent agents 
D)  Direct investments 
E)  Branch offices 
A)  Strategic alliances 
B)  Licensing arrangements 
C)  Independent agents 
D)  Direct investments 
E)  Branch offices

Question 2

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

Accepted Answer

A)  Independent agency 
B)  Opening branch offices 
C)  Providing licensing arrangements 
D)  Forming strategic alliances 
E)  Foreign direct investment 
A)  Independent agency 
B)  Opening branch offices 
C)  Providing licensing arrangements 
D)  Forming strategic alliances 
E)  Foreign direct investment

Question 3

When the value of the Canadian dollar drops,

Accepted Answer

A)  both our imports and our exports become more expensive. 
B)  our imports become cheaper and our exports become more expensive. 
C)  our imports become more expensive and our exports become cheaper. 
D)  both our imports and our exports become cheaper. 
E)  there is no change in the price of our imports and our exports. 
A)  both our imports and our exports become more expensive. 
B)  our imports become cheaper and our exports become more expensive. 
C)  our imports become more expensive and our exports become cheaper. 
D)  both our imports and our exports become cheaper. 
E)  there is no change in the price of our imports and our exports.

Question 4

Give an example of an absolute advantage.

Accepted Answer

(Answers will vary.)Saudi oil,

Question 5

Identify some of the free trade agreements located outside of the Americas and the countries involved in them.

Accepted Answer

- ASEAN Free TradeArea-Brunei,Indonesia,

Question 6

A Canadian fast food restaurant chain,which has loyal customers and strong demand for its products,is thinking about expanding its operations to China.Which of the following would favour the expansion?

Accepted Answer

A)  Fluctuating exchange rates affect the value of sales made in different countries. 
B)  Even companies with global brands usually have to tailor their product offerings to accommodate the differing tastes of consumers in different countries. 
C)  The most costly item on the chain's menu is not its biggest profit contributor. 
D)  Market research shows that reaching additional customers in Canada will cost more than expanding into China. 
E)  Chinese companies don't usually use franchising when they try to expand into other countries. 
A)  Fluctuating exchange rates affect the value of sales made in different countries. 
B)  Even companies with global brands usually have to tailor their product offerings to accommodate the differing tastes of consumers in different countries. 
C)  The most costly item on the chain's menu is not its biggest profit contributor. 
D)  Market research shows that reaching additional customers in Canada will cost more than expanding into China. 
E)  Chinese companies don't usually use franchising when they try to expand into other countries.

Question 7

Asia-Pacific is a growing force in the world economy and a major source of competition for North American companies.

Accepted Answer

A) True 
 B)False

Question 8

If the Canadian dollar becomes stronger in relation to the Japanese yen

Accepted Answer

A)  the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would fall in Canada. 
B)  there would be no effect on the prices of Canadian-made products sold in Japan. 
C)  the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would rise in Canada. 
D)  the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would fall in Canada. 
E)  the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would rise in Canada. 
A)  the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would fall in Canada. 
B)  there would be no effect on the prices of Canadian-made products sold in Japan. 
C)  the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would rise in Canada. 
D)  the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would fall in Canada. 
E)  the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would rise in Canada.

Question 9

Which of the following is correct with regard to the balance of trade and the balance of payments?

Accepted Answer

A)  If a country has a favourable balance of trade,it will also have a favourable balance of payments. 
B)  The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year. 
C)  A country that imports more than it exports has a favourable balance of trade. 
D)  Countries used to strive to have a favourable balance of trade,but governments no longer worry about that issue because of globalization. 
E)  Canada has had a favourable balance of trade for most of the last 30 years. 
A)  If a country has a favourable balance of trade,it will also have a favourable balance of payments. 
B)  The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year. 
C)  A country that imports more than it exports has a favourable balance of trade. 
D)  Countries used to strive to have a favourable balance of trade,but governments no longer worry about that issue because of globalization. 
E)  Canada has had a favourable balance of trade for most of the last 30 years.

Question 10

The World Trade Organization has been largely successful in dealing with the issue of agricultural subsidies.

Accepted Answer

A) True 
 B)False

Question 11

Associations of producers that control supply and prices are called

Accepted Answer

A)  cartels. 
B)  foreign direct investments. 
C)  business offices. 
D)  quotas. 
E)  independent agents. 
A)  cartels. 
B)  foreign direct investments. 
C)  business offices. 
D)  quotas. 
E)  independent agents.

Question 12

Royalties would likely be paid to the exporter

Accepted Answer

A)  by a branch office. 
B)  under a licensing arrangement. 
C)  by a subsidiary manufacturing plant. 
D)  in a joint venture. 
E)  in a strategic alliance. 
A)  by a branch office. 
B)  under a licensing arrangement. 
C)  by a subsidiary manufacturing plant. 
D)  in a joint venture. 
E)  in a strategic alliance.

Question 13

Define the term globalization.

Accepted Answer

Globalization refers to the pr

Question 14

The balance of payments that Canada has experienced has been

Accepted Answer

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

Question 15

Which of the following is likely to happen if the demand for Canadian goods increases?

Accepted Answer

A)  The value of the dollar will decrease. 
B)  The demand for the dollar will decrease. 
C)  The demand for goods will have little or no effect on the dollar. 
D)  The demand for the dollar will increase. 
E)  It is not possible to say. 
A)  The value of the dollar will decrease. 
B)  The demand for the dollar will decrease. 
C)  The demand for goods will have little or no effect on the dollar. 
D)  The demand for the dollar will increase. 
E)  It is not possible to say.

Question 16

Canada typically has a favourable balance of trade with the U.S.and an unfavourable balance of trade with Japan and the EU.

Accepted Answer

A) True 
 B)False

Question 17

The benefits of NAFTA are slowly being eroded by ever-increasing delays at border crossings.

Accepted Answer

A) True 
 B)False

Question 18

What are the four steps that firms should go through when deciding whether or not to go international?

Accepted Answer

- Is there international demand for the

Question 19

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would lend the most support to the idea of exporting to China?

Accepted Answer

A)  Best Foods has a large budget to pursue investments in foreign countries. 
B)  Best Foods must have strict control over its international operations. 
C)  Best Foods will have to modify its product line to suit Chinese tastes and preferences. 
D)  Best Foods' products do not have a particularly "healthy" reputation in Canada. 
E)  Best Foods has significant excess capacity. 
A)  Best Foods has a large budget to pursue investments in foreign countries. 
B)  Best Foods must have strict control over its international operations. 
C)  Best Foods will have to modify its product line to suit Chinese tastes and preferences. 
D)  Best Foods' products do not have a particularly "healthy" reputation in Canada. 
E)  Best Foods has significant excess capacity.

Question 20

The comparative advantage form of competitive advantage means

Accepted Answer

A)  that a country does not belong to any free trade agreements. 
B)  that a country is the sole supplier of a product or service. 
C)  that a country can produce everything better or more cheaply than any other country. 
D)  that a country can produce some products better or more cheaply than it can other products. 
E)  that a country can produce something better or more cheaply than any other country. 
A)  that a country does not belong to any free trade agreements. 
B)  that a country is the sole supplier of a product or service. 
C)  that a country can produce everything better or more cheaply than any other country. 
D)  that a country can produce some products better or more cheaply than it can other products. 
E)  that a country can produce something better or more cheaply than any other country.

Lack of knowledge of foreign customs has lead most Canadian companies doing business in Japan to select what form of international organization?

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

When the value of the Canadian dollar drops,

Give an example of an absolute advantage.

Identify some of the free trade agreements located outside of the Americas and the countries involved in them.

A Canadian fast food restaurant chain,which has loyal customers and strong demand for its products,is thinking about expanding its operations to China.Which of the following would favour the expansion?

Asia-Pacific is a growing force in the world economy and a major source of competition for North American companies.

If the Canadian dollar becomes stronger in relation to the Japanese yen

Which of the following is correct with regard to the balance of trade and the balance of payments?

The World Trade Organization has been largely successful in dealing with the issue of agricultural subsidies.

Associations of producers that control supply and prices are called

Royalties would likely be paid to the exporter

Define the term globalization.

The balance of payments that Canada has experienced has been

Which of the following is likely to happen if the demand for Canadian goods increases?

Canada typically has a favourable balance of trade with the U.S.and an unfavourable balance of trade with Japan and the EU.

The benefits of NAFTA are slowly being eroded by ever-increasing delays at border crossings.

What are the four steps that firms should go through when deciding whether or not to go international?

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would lend the most support to the idea of exporting to China?

The comparative advantage form of competitive advantage means

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

Exam 5: The Global Context of Business

Lack of knowledge of foreign customs has lead most Canadian companies doing business in Japan to select what form of international organization?

Which of the following international organizational strategies means buying or establishing tangible assets in another country?

When the value of the Canadian dollar drops,

Give an example of an absolute advantage.

Identify some of the free trade agreements located outside of the Americas and the countries involved in them.

A Canadian fast food restaurant chain,which has loyal customers and strong demand for its products,is thinking about expanding its operations to China.Which of the following would favour the expansion?

Asia-Pacific is a growing force in the world economy and a major source of competition for North American companies.

If the Canadian dollar becomes stronger in relation to the Japanese yen

Which of the following is correct with regard to the balance of trade and the balance of payments?

The World Trade Organization has been largely successful in dealing with the issue of agricultural subsidies.

Associations of producers that control supply and prices are called

Royalties would likely be paid to the exporter

Define the term globalization.

The balance of payments that Canada has experienced has been

Which of the following is likely to happen if the demand for Canadian goods increases?

Canada typically has a favourable balance of trade with the U.S.and an unfavourable balance of trade with Japan and the EU.

The benefits of NAFTA are slowly being eroded by ever-increasing delays at border crossings.

What are the four steps that firms should go through when deciding whether or not to go international?

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting to China.Which of the following would lend the most support to the idea of exporting to China?

The comparative advantage form of competitive advantage means

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