Question 1

Forming a joint venture with an existing foreign company offers all of the following advantages except

Accepted Answer

A) joining an established firm. 
B) requiring less commitment from all parties involved in the joint venture. 
C) providing immediate marketing knowledge. 
D) providing reduced risk. 
E) providing control over product attributes. 
A) joining an established firm. 
B) requiring less commitment from all parties involved in the joint venture. 
C) providing immediate marketing knowledge. 
D) providing reduced risk. 
E) providing control over product attributes.

Question 2

​While the global economy continued to grow robustly until 2007, economic performance ______.

Accepted Answer

A) ​was sluggish then stopped in 2009. 
B) ​was advancing at an equal pace. 
C) ​outstripped the global economy. 
D) ​continued gradually. 
A) ​was sluggish then stopped in 2009. 
B) ​was advancing at an equal pace. 
C) ​outstripped the global economy. 
D) ​continued gradually.

Question 3

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Accepted Answer

A) members of the Dow Jones Industrial Average. 
B) global trading companies. 
C) internationally owned facilities. 
D) multinational enterprises. 
E) foreign-domestic corporations. 
A) members of the Dow Jones Industrial Average. 
B) global trading companies. 
C) internationally owned facilities. 
D) multinational enterprises. 
E) foreign-domestic corporations.

Question 4

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 5

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 6

What is an embargo? When might it be used?

Accepted Answer

An embargo is a complete halt to trading

Question 7

Totally owned facilities overseas are an example of

Accepted Answer

A) indirect investment. 
B) direct investment. 
C) roundabout investment. 
D) licensing. 
E) joint venture. 
A) indirect investment. 
B) direct investment. 
C) roundabout investment. 
D) licensing. 
E) joint venture.

Question 8

If a country imports more than it exports, its balance of trade is said to be favorable.

Accepted Answer

A) True 
 B)False

Question 9

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Alberto would probably argue

Accepted Answer

A) against trade restrictions. 
B) for the trade deficit. 
C) for exports. 
D) for tourism. 
E) against international free trade associations. 
A) against trade restrictions. 
B) for the trade deficit. 
C) for exports. 
D) for tourism. 
E) against international free trade associations.

Question 10

The United States sells industrial supplies and materials to many nations around the world. The United States thus engages in

Accepted Answer

A) dumping. 
B) tariffing. 
C) importing. 
D) exporting. 
E) deficit trading. 
A) dumping. 
B) tariffing. 
C) importing. 
D) exporting. 
E) deficit trading.

Question 11

A tax that is levied on a foreign product entering a country is called an export tariff.

Accepted Answer

A) True 
 B)False

Question 12

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 13

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Accepted Answer

A) shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B) makes the china less attractive to foreigner purchasers. 
C) makes the china more attractive to foreign purchasers. 
D) is irrelevant to foreign purchasers. 
E) proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars. 
A) shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B) makes the china less attractive to foreigner purchasers. 
C) makes the china more attractive to foreign purchasers. 
D) is irrelevant to foreign purchasers. 
E) proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars.

Question 14

Landing Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come clos
-Refer to Landing Service. The Landing Service does mostly

Accepted Answer

A) mediating. 
B) domestic sales. 
C) importing. 
D) exporting. 
E) currency devaluation. 
A) mediating. 
B) domestic sales. 
C) importing. 
D) exporting. 
E) currency devaluation.

Question 15

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Accepted Answer

A) World Bank. 
B) Export-Import Bank of the World. 
C) African Development Bank. 
D) International Monetary Fund. 
E) Multilateral Development Bank of Central and South America. 
A) World Bank. 
B) Export-Import Bank of the World. 
C) African Development Bank. 
D) International Monetary Fund. 
E) Multilateral Development Bank of Central and South America.

Question 16

By definition, every country has a(n) ____ advantage in some product.

Accepted Answer

A) relative 
B) absolute 
C) comparative 
D) superior 
E) inferior 
A) relative 
B) absolute 
C) comparative 
D) superior 
E) inferior

Question 17

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

Accepted Answer

A) The International Monetary Fund 
B) The Inter-American Development Bank 
C) The United States 
D) The Federal Reserve 
E) The Development Bank for Emerging Economies 
A) The International Monetary Fund 
B) The Inter-American Development Bank 
C) The United States 
D) The Federal Reserve 
E) The Development Bank for Emerging Economies

Question 18

When a country exports more than it imports, it has a(n)

Accepted Answer

A) trade deficit. 
B) favorable balance of trade. 
C) unfavorable exchange rate. 
D) unfavorable balance of trade. 
E) unfavorable balance of payments. 
A) trade deficit. 
B) favorable balance of trade. 
C) unfavorable exchange rate. 
D) unfavorable balance of trade. 
E) unfavorable balance of payments.

Question 19

What are some of the major sources of export assistance from the federal government?

Accepted Answer

Answers will vary. Some of the U.S. gove

Question 20

The Export-Import Bank of the United States

Accepted Answer

A) is owned and operated by Fortune 500 companies. 
B) is an independent agency of the U.S.government. 
C) aids foreign nations experiencing balance-of-payments problems. 
D) guarantees credit to American buyers of foreign goods. 
E) closed its operations in 1991. 
A) is owned and operated by Fortune 500 companies. 
B) is an independent agency of the U.S.government. 
C) aids foreign nations experiencing balance-of-payments problems. 
D) guarantees credit to American buyers of foreign goods. 
E) closed its operations in 1991.

Forming a joint venture with an existing foreign company offers all of the following advantages except

While the global economy continued to grow robustly until 2007, economic performance ______.

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

What is an embargo? When might it be used?

Totally owned facilities overseas are an example of

If a country imports more than it exports, its balance of trade is said to be favorable.

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Alberto would probably argue

The United States sells industrial supplies and materials to many nations around the world. The United States thus engages in

A tax that is levied on a foreign product entering a country is called an export tariff.

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

By definition, every country has a(n) ____ advantage in some product.

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

When a country exports more than it imports, it has a(n)

What are some of the major sources of export assistance from the federal government?

The Export-Import Bank of the United States

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

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Exam 3: Exploring Global Business

Forming a joint venture with an existing foreign company offers all of the following advantages except

​While the global economy continued to grow robustly until 2007, economic performance ______.

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

What is an embargo? When might it be used?

Totally owned facilities overseas are an example of

If a country imports more than it exports, its balance of trade is said to be favorable.

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Alberto would probably argue

The United States sells industrial supplies and materials to many nations around the world. The United States thus engages in

A tax that is levied on a foreign product entering a country is called an export tariff.

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

By definition, every country has a(n) ____ advantage in some product.

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

When a country exports more than it imports, it has a(n)

What are some of the major sources of export assistance from the federal government?

The Export-Import Bank of the United States

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

While the global economy continued to grow robustly until 2007, economic performance ______.