Question 1

Clement has found that there is definitely overseas demand for his fruit wine.Now he must consider

Accepted Answer

A)  when he can travel overseas to assess his competition in person. 
B)  the balance of payments in the overseas market. 
C)  how other Canadian firms have done in the overseas market. 
D)  how to adapt the product to meet the special demands of foreigners. 
E)  the amount of royalty fees. 
A)  when he can travel overseas to assess his competition in person. 
B)  the balance of payments in the overseas market. 
C)  how other Canadian firms have done in the overseas market. 
D)  how to adapt the product to meet the special demands of foreigners. 
E)  the amount of royalty fees.

Question 2

As the value of a country's currency rises,

Accepted Answer

A)  domestic companies will have a harder time selling their products in foreign markets. 
B)  foreign companies will find it harder to sell their products in local markets. 
C)  imports and exports will remain relatively constant. 
D)  domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E)  all of these will happen. 
A)  domestic companies will have a harder time selling their products in foreign markets. 
B)  foreign companies will find it harder to sell their products in local markets. 
C)  imports and exports will remain relatively constant. 
D)  domestic companies will shift from the production of consumer goods to the production of industrial goods. 
E)  all of these will happen.

Question 3

When the value of the Canadian dollar rises,

Accepted Answer

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

Question 4

What are the various levels of involvement in international business?

Accepted Answer

- exporting goods and services

Question 5

What is product dumping?

Accepted Answer

Selling a product ab

Question 6

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries.It has a

Accepted Answer

A)  negative balance of payments. 
B)  comparative advantage. 
C)  positive balance of payments. 
D)  trade surplus. 
E)  trade deficit. 
A)  negative balance of payments. 
B)  comparative advantage. 
C)  positive balance of payments. 
D)  trade surplus. 
E)  trade deficit.

Question 7

McCain Foods developed single-sized portions of frozen vegetables to serve customers in South Africa that do not have proper refrigeration.This is an example of

Accepted Answer

A)  determining whether there is international demand for a product. 
B)  modifying a product to fit a foreign market. 
C)  determining the receptivity of a foreign market for a company's product. 
D)  acquiring the necessary skills to do business abroad. 
E)  bootstrapping. 
A)  determining whether there is international demand for a product. 
B)  modifying a product to fit a foreign market. 
C)  determining the receptivity of a foreign market for a company's product. 
D)  acquiring the necessary skills to do business abroad. 
E)  bootstrapping.

Question 8

China is now the world's second-largest economy.

Accepted Answer

A) True 
 B)False

Question 9

The theory of national competitive advantage derives from all of the following conditions except

Accepted Answer

A)  demand conditions. 
B)  supply conditions. 
C)  strategies,structures,and rivalries. 
D)  related and supporting industries. 
E)  factor conditions. 
A)  demand conditions. 
B)  supply conditions. 
C)  strategies,structures,and rivalries. 
D)  related and supporting industries. 
E)  factor conditions.

Question 10

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?

Accepted Answer

A)  Independent agent 
B)  Licensing agreement 
C)  Foreign direct investment 
D)  Branch office 
E)  Strategic alliance 
A)  Independent agent 
B)  Licensing agreement 
C)  Foreign direct investment 
D)  Branch office 
E)  Strategic alliance

Question 11

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a protectionist tariff.

Accepted Answer

A) True 
 B)False

Question 12

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably

Accepted Answer

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

Question 13

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 weaken the argument for exporting to China?

Accepted Answer

A)  Best Foods will have to put out a lot of money if it decides to enter a joint venture in China. 
B)  Best Foods will have to hire sales personnel in China. 
C)  The executives at Best Foods are risk-averse. 
D)  Best Foods does not have expertise in the Chinese market and the company has not found reliable intermediaries with expertise in that market. 
E)  Best Foods can export its products pretty much as they are,since more and more Chinese consumers are eating breakfast cereals. 
A)  Best Foods will have to put out a lot of money if it decides to enter a joint venture in China. 
B)  Best Foods will have to hire sales personnel in China. 
C)  The executives at Best Foods are risk-averse. 
D)  Best Foods does not have expertise in the Chinese market and the company has not found reliable intermediaries with expertise in that market. 
E)  Best Foods can export its products pretty much as they are,since more and more Chinese consumers are eating breakfast cereals.

Question 14

Farmer Sal grows strawberries.The berries are shipped to a local processing plant where they are made into jam,labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas.This product of Ontario is also referred to as a(n)

Accepted Answer

A)  export. 
B)  import. 
C)  trade product. 
D)  absolute product. 
E)  competitive advantage. 
A)  export. 
B)  import. 
C)  trade product. 
D)  absolute product. 
E)  competitive advantage.

Question 15

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)

Accepted Answer

A)  subsidy. 
B)  local content law. 
C)  quota. 
D)  embargo. 
E)  tariff. 
A)  subsidy. 
B)  local content law. 
C)  quota. 
D)  embargo. 
E)  tariff.

Question 16

Franchising is a special form of licensing.

Accepted Answer

A) True 
 B)False

Question 17

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the CEO's position?

Accepted Answer

A)  People in different countries have different preferences with regard to how they make payment for products. 
B)  Demographic targeting of consumers is more easily accomplished on the internet than in other forms of advertising. 
C)  If the local currency is used,that may increase demand,but there are challenges with respect to currency exchange and shipping. 
D)  Advertising laws vary from country to country. 
E)  Import and export laws in various countries would need to be understood. 
A)  People in different countries have different preferences with regard to how they make payment for products. 
B)  Demographic targeting of consumers is more easily accomplished on the internet than in other forms of advertising. 
C)  If the local currency is used,that may increase demand,but there are challenges with respect to currency exchange and shipping. 
D)  Advertising laws vary from country to country. 
E)  Import and export laws in various countries would need to be understood.

Question 18

The CEOs of Companies A and B are investigating expansion into new markets.Which of the following describes a situation that is most suitable for an importing-exporting opportunity?

Accepted Answer

A)  Country X is strong in the production of textiles,while Country Y is good at producing high-yield crops. 
B)  Company A will provide parts used in the production of equipment by Company B if company B will give discounts on the manufacturing equipment. 
C)  The southern region of Country X over-produces a wide range of produce,while few crops can be efficiently grown in the northern region. 
D)  Companies A and B in country Y are talking about forming a joint venture to provide goods to Country X. 
E)  Country X wants to invest in foreign markets while Country Y currently has a large trade deficit. 
A)  Country X is strong in the production of textiles,while Country Y is good at producing high-yield crops. 
B)  Company A will provide parts used in the production of equipment by Company B if company B will give discounts on the manufacturing equipment. 
C)  The southern region of Country X over-produces a wide range of produce,while few crops can be efficiently grown in the northern region. 
D)  Companies A and B in country Y are talking about forming a joint venture to provide goods to Country X. 
E)  Country X wants to invest in foreign markets while Country Y currently has a large trade deficit.

Question 19

Greencorp Ltd.sold the rights for production of 4 Star Soil to Soil X of Italy who now produces the special mix of fertilized soil and sells it in Italy.This arrangement is called a(n)

Accepted Answer

A)  independent agent. 
B)  licensing arrangement. 
C)  strategic alliance. 
D)  branch office. 
E)  equality relationship. 
A)  independent agent. 
B)  licensing arrangement. 
C)  strategic alliance. 
D)  branch office. 
E)  equality relationship.

Question 20

Exporters and importers tend to do most of their business in their home nations.

Accepted Answer

A) True 
 B)False

Clement has found that there is definitely overseas demand for his fruit wine.Now he must consider

As the value of a country's currency rises,

When the value of the Canadian dollar rises,

What are the various levels of involvement in international business?

What is product dumping?

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries.It has a

McCain Foods developed single-sized portions of frozen vegetables to serve customers in South Africa that do not have proper refrigeration.This is an example of

China is now the world's second-largest economy.

The theory of national competitive advantage derives from all of the following conditions except

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a protectionist tariff.

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably

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 weaken the argument for exporting to China?

Farmer Sal grows strawberries.The berries are shipped to a local processing plant where they are made into jam,labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas.This product of Ontario is also referred to as a(n)

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)

Franchising is a special form of licensing.

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the CEO's position?

The CEOs of Companies A and B are investigating expansion into new markets.Which of the following describes a situation that is most suitable for an importing-exporting opportunity?

Greencorp Ltd.sold the rights for production of 4 Star Soil to Soil X of Italy who now produces the special mix of fertilized soil and sells it in Italy.This arrangement is called a(n)

Exporters and importers tend to do most of their business in their home nations.

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

Clement has found that there is definitely overseas demand for his fruit wine.Now he must consider

As the value of a country's currency rises,

When the value of the Canadian dollar rises,

What are the various levels of involvement in international business?

What is product dumping?

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries.It has a

McCain Foods developed single-sized portions of frozen vegetables to serve customers in South Africa that do not have proper refrigeration.This is an example of

China is now the world's second-largest economy.

The theory of national competitive advantage derives from all of the following conditions except

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?

When Canada placed a tariff on barbecues made in China because of complaints that the Chinese government was subsidizing their manufacture,this was an example of a protectionist tariff.

Laura's Lights,Inc.has decided to expand business into Vietnam.Laura is looking for help with funding the operation and to share in the risk.She knows little about the customs and how to get things done in Vietnam.The best international structure for her is probably

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 weaken the argument for exporting to China?

Farmer Sal grows strawberries.The berries are shipped to a local processing plant where they are made into jam,labeled "Country Recipe Strawberry Jam," and boxed for shipment overseas.This product of Ontario is also referred to as a(n)

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)

Franchising is a special form of licensing.

The CEO of Charter Books thinks that the company should "go global" by using the internet,but the vice president thinks that too many problems would be encountered.Which of the following statements would support the CEO's position?

The CEOs of Companies A and B are investigating expansion into new markets.Which of the following describes a situation that is most suitable for an importing-exporting opportunity?

Greencorp Ltd.sold the rights for production of 4 Star Soil to Soil X of Italy who now produces the special mix of fertilized soil and sells it in Italy.This arrangement is called a(n)

Exporters and importers tend to do most of their business in their home nations.

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