Question 1

International trade improves peoples' standard of living,yet countries often put up trade barriers? Why is this?

Accepted Answer

A)  Goods that are imported compete with domestic products and put pressure on domestic businesses. 
B)  The quality of imported products is usually lower than the quality of domestically produced products. 
C)  Generating government revenue is often more economically valuable than free trade. 
D)  To keep a country's currency strong 
E)  International trade causes political tensions to develop. 
A)  Goods that are imported compete with domestic products and put pressure on domestic businesses. 
B)  The quality of imported products is usually lower than the quality of domestically produced products. 
C)  Generating government revenue is often more economically valuable than free trade. 
D)  To keep a country's currency strong 
E)  International trade causes political tensions to develop.

Question 2

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

Accepted Answer

A)  Modify the product to meet the standards of different countries 
B)  Deal with independent agents 
C)  Delay international operations until the currency exchange rate is favourable 
D)  Drop the idea of international operation 
E)  None of these 
A)  Modify the product to meet the standards of different countries 
B)  Deal with independent agents 
C)  Delay international operations until the currency exchange rate is favourable 
D)  Drop the idea of international operation 
E)  None of these

Question 3

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

Accepted Answer

A)  an importer. 
B)  an international firm. 
C)  mininational. 
D)  an exporter. 
E)  a multinational firm. 
A)  an importer. 
B)  an international firm. 
C)  mininational. 
D)  an exporter. 
E)  a multinational firm.

Question 4

With regard to the BRIC countries,it is correct to say that

Accepted Answer

A)  they all emphasize the export of raw materials. 
B)  they all have a low level of industrialization at the moment,but are progressing rapidly. 
C)  Russia is the strongest in terms of manufacturing. 
D)  Brazil is at the front of the pack in terms of optimism and opportunity. 
E)  all of these statements are correct. 
A)  they all emphasize the export of raw materials. 
B)  they all have a low level of industrialization at the moment,but are progressing rapidly. 
C)  Russia is the strongest in terms of manufacturing. 
D)  Brazil is at the front of the pack in terms of optimism and opportunity. 
E)  all of these statements are correct.

Question 5

In 2011-2012,the top three countries in the World Economic Forum's global competitiveness ranking were Switzerland,Finland,and Iceland.

Accepted Answer

A) True 
 B)False

Question 6

If there is a favourable balance of payments,it means that

Accepted Answer

A)  a country exports manufactured goods and imports raw materials. 
B)  a country imports more than it exports for each country with which it trades. 
C)  a country exports more than it imports for each country with which it trades. 
D)  the country has more money flowing into it than out as a result of trade and other transactions. 
E)  a country exports raw materials and imports manufactured goods. 
A)  a country exports manufactured goods and imports raw materials. 
B)  a country imports more than it exports for each country with which it trades. 
C)  a country exports more than it imports for each country with which it trades. 
D)  the country has more money flowing into it than out as a result of trade and other transactions. 
E)  a country exports raw materials and imports manufactured goods.

Question 7

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Accepted Answer

- share the costs and risks of

Question 8

Canadians who were opposed to free trade feared all of the following except

Accepted Answer

A)  Canadian cultural sovereignty would be lost. 
B)  the U.S.might take our natural resources. 
C)  Canada would lose the right to control its own environmental standards. 
D)  jobs would be lost to other countries. 
E)  Canada would have to peg the Canadian dollar to the U.S.dollar 
A)  Canadian cultural sovereignty would be lost. 
B)  the U.S.might take our natural resources. 
C)  Canada would lose the right to control its own environmental standards. 
D)  jobs would be lost to other countries. 
E)  Canada would have to peg the Canadian dollar to the U.S.dollar

Question 9

Walmart is an example of a(n)

Accepted Answer

A)  exporter. 
B)  international firm. 
C)  government agency. 
D)  multinational firm. 
E)  strategic alliance. 
A)  exporter. 
B)  international firm. 
C)  government agency. 
D)  multinational firm. 
E)  strategic alliance.

Question 10

Mega Computers has decided to expand operations overseas.In order to give foreign customers a sense of security,Mega has chosen to send several of its own managers and technicians to the country as part of the start-up operations.In addition,this will give Mega more control over making sure that top quality service is given to the new customers.Mega has chosen the organizational strategy known as

Accepted Answer

A)  independent agent. 
B)  strategic alliance. 
C)  direct investment. 
D)  branch office. 
E)  licensing arrangement. 
A)  independent agent. 
B)  strategic alliance. 
C)  direct investment. 
D)  branch office. 
E)  licensing arrangement.

Question 11

Different levels of involvement in international business require different kinds of organizational structure.Identify and explain the spectrum of international organizational strategies.

Accepted Answer

- Independent agent - foreign individual

Question 12

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting its products to China.Which of the following would be the strongest argument against exporting to China?

Accepted Answer

A)  The Chinese government gives subsidies and tax incentives to Chinese manufacturers who want to export their products. 
B)  Steamed dough,noodles,fruits,and eggs are what the typical Chinese consumer eats for breakfast. 
C)  It would take a lot of time to establish operations in China because of regulatory hurdles put up by the government of China. 
D)  Best Food executives know of several companies that failed in China because they didn't understand local requirements. 
E)  To successfully penetrate the Chinese market will require extensive use of local employees who know all the nuances of the Chinese culture. 
A)  The Chinese government gives subsidies and tax incentives to Chinese manufacturers who want to export their products. 
B)  Steamed dough,noodles,fruits,and eggs are what the typical Chinese consumer eats for breakfast. 
C)  It would take a lot of time to establish operations in China because of regulatory hurdles put up by the government of China. 
D)  Best Food executives know of several companies that failed in China because they didn't understand local requirements. 
E)  To successfully penetrate the Chinese market will require extensive use of local employees who know all the nuances of the Chinese culture.

Question 13

If the Mexican government put a limit on the ounces of tequila being imported into Mexico,what has occurred?

Accepted Answer

A)  The government has installed a protection plan for its own tequila producers and is encouraging imports. 
B)  The government has installed both a protection plan for its own tequila producers and a quota. 
C)  The government has installed a quota and an embargo. 
D)  The government is encouraging imports and installed an embargo. 
E)  The government installed an embargo and a protection plan. 
A)  The government has installed a protection plan for its own tequila producers and is encouraging imports. 
B)  The government has installed both a protection plan for its own tequila producers and a quota. 
C)  The government has installed a quota and an embargo. 
D)  The government is encouraging imports and installed an embargo. 
E)  The government installed an embargo and a protection plan.

Question 14

Explain what the term exchange rate means.

Accepted Answer

An exchange rate is

Question 15

Which of the following is not included in the balance of payments?

Accepted Answer

A)  Money paid for imports 
B)  Money paid by domestic corporations for taxes 
C)  Money spent by tourists 
D)  Money spent on foreign aid 
E)  Money paid for exports 
A)  Money paid for imports 
B)  Money paid by domestic corporations for taxes 
C)  Money spent by tourists 
D)  Money spent on foreign aid 
E)  Money paid for exports

Question 16

An embargo is really a quota of zero.

Accepted Answer

A) True 
 B)False

Question 17

Among the BRIC countries,Russia has encountered the most trouble while Brazil is at the front of the pack.

Accepted Answer

A) True 
 B)False

Question 18

The absolute advantage form of competitive advantage means

Accepted Answer

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

Question 19

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Accepted Answer

A) True 
 B)False

Question 20

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to begin exporting its products to China.Which of the following would strengthen the argument for exporting to the Chinese market?

Accepted Answer

A)  The middle class is growing rapidly in China and members of this class are quick to adopt western lifestyles and product preferences. 
B)  Growth in the Canadian cereal market continues to be strong. 
C)  A stronger Chinese currency would affect Chinese exports. 
D)  Chinese food preferences evolve slowly. 
E)  China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN). 
A)  The middle class is growing rapidly in China and members of this class are quick to adopt western lifestyles and product preferences. 
B)  Growth in the Canadian cereal market continues to be strong. 
C)  A stronger Chinese currency would affect Chinese exports. 
D)  Chinese food preferences evolve slowly. 
E)  China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN).

International trade improves peoples' standard of living,yet countries often put up trade barriers? Why is this?

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

With regard to the BRIC countries,it is correct to say that

In 2011-2012,the top three countries in the World Economic Forum's global competitiveness ranking were Switzerland,Finland,and Iceland.

If there is a favourable balance of payments,it means that

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Canadians who were opposed to free trade feared all of the following except

Walmart is an example of a(n)

Different levels of involvement in international business require different kinds of organizational structure.Identify and explain the spectrum of international organizational strategies.

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting its products to China.Which of the following would be the strongest argument against exporting to China?

If the Mexican government put a limit on the ounces of tequila being imported into Mexico,what has occurred?

Explain what the term exchange rate means.

Which of the following is not included in the balance of payments?

An embargo is really a quota of zero.

Among the BRIC countries,Russia has encountered the most trouble while Brazil is at the front of the pack.

The absolute advantage form of competitive advantage means

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to begin exporting its products to China.Which of the following would strengthen the argument for exporting to the Chinese market?

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

International trade improves peoples' standard of living,yet countries often put up trade barriers? Why is this?

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?

A firm that conducts a significant portion of its business abroad,that has some facilities overseas,and that imports a significant portion of goods from other countries is best described as

With regard to the BRIC countries,it is correct to say that

In 2011-2012,the top three countries in the World Economic Forum's global competitiveness ranking were Switzerland,Finland,and Iceland.

If there is a favourable balance of payments,it means that

Why would two companies,both earning large profits and expanding into Japan,form a strategic alliance?

Canadians who were opposed to free trade feared all of the following except

Walmart is an example of a(n)

Different levels of involvement in international business require different kinds of organizational structure.Identify and explain the spectrum of international organizational strategies.

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to start exporting its products to China.Which of the following would be the strongest argument against exporting to China?

If the Mexican government put a limit on the ounces of tequila being imported into Mexico,what has occurred?

Explain what the term exchange rate means.

Which of the following is not included in the balance of payments?

An embargo is really a quota of zero.

Among the BRIC countries,Russia has encountered the most trouble while Brazil is at the front of the pack.

The absolute advantage form of competitive advantage means

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

Executives at Best Foods,a successful Canadian company that produces cold breakfast cereal,are undecided about whether to begin exporting its products to China.Which of the following would strengthen the argument for exporting to the Chinese market?

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