Deck 3: The Global Marketplace

Question 1

Approximately how many people live in the "Emerging Markets"?

A) 5 + billion
B) 2 + billion
C) 3 + billion
D) 1 + billion
E) 4 + billion

Answer 1

C

Question 2

Why are a variety of Canadian organizations realizing new market potential in emerging developing economies of the world?

A) Cost Reduction
B) Resource Base Control
C) Closeness to Market
D) Rapid growth
E) Economies of Scale

Answer 2

D

Question 3

___________ strategy.

A) Import
B) Export
C) Price-focused
D) Competitive
E) Trade

Answer 3

B

Question 4

The __________ represents the first attempt to establish a truly global mediation centre to resolve international trade disputes.

A) International Trade Court
B) World Trade Organization
C) Global Trade Commission
D) United Nations Arbitration Centre

Question 5

What is happening to the standard of living for the billions of people in the "Emerging Markets"?

A) stagnating
B) improving
C) decreasing
D) uplifting
E) none of the above

Question 6

____________ is an example of a successful Canadian business which started out as a small local player,and has evolved into an international organization with retail store locations in the U.S.and Australia.

A) Lululemon Athletica
B) Magna International
C) Research in Motion
D) Sinopec
E) The Hudson's Bay Company

Question 7

A ________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

A) protective
B) restrictive
C) progressive
D) revenue

Question 8

Canadian natural resources include which of the following?

A) mining
B) agriculture
C) energy
D) manufacturing
E) a), b) and c)

Question 9

What is happening to the standard of living for the billions of people in the "Emerging Markets"?

A) stagnating
B) improving
C) decreasing
D) uplifting
E) none of the above

Question 10

Where do Canadian companies naturally look first for potential growth opportunities?

A) Asia
B) South America
C) Britain
D) U.S.
E) Mexico

Question 11

What type of investment is currently under way within the emerging market countries?

A) sovereign
B) capital
C) infrastructure
D) foreign direct
E) foreign development

Question 12

With respect to the global marketplace,what did the meltdown of the financial services sector in the fall of 2008,and the accompanying recession of 2009 bring to the forefront?

A) liquidity and solvency issues
B) interdependency and connectivity
C) growth and development issues
D) regulatory policies
E) spending issues

Question 13

___________ is the use of government regulations to limit the import of goods and services.

A) Trade protectionism
B) Fiscal policy
C) Countertrade policy
D) Monetary policy

Question 14

United States has stopped some Canadian goods from entering the country because it said that the information on the labels was too small.This is an example of a(n): :

A) tariff
B) import quota
C) nontariff barrier
D) embargo

Question 15

The search for new markets is not __________,with developing economy companies also looking to export to fully-developed economies,such as the U.S.and Canada.

A) A closed system
B) A one-way focus
C) A two-way street
D) An exclusive endeavour
E) A limited effort

Question 16

Which of the following government policies creates an environment of restrictive standards intended to make it difficult for foreign firms to successfully sell their products?

A) Monetary tariffs
B) Countertrade policies
C) Nontariff barriers
D) Export constraint policies

Question 17

In terms of global competitiveness,companies are attracted to countries where _______ costs are relatively low and __________ are relatively high.

A) occupational skills; labour
B) workforce; occupational skills
C) labour; professional skills
D) occupational skills; workforce
E) labour; occupational skills

Question 18

Many countries use ________________ policies as a way to protect their domestic industries from unfair foreign competition.

A) export limitation
B) global marketing
C) trade protectionism
D) import enhancement

Question 19

____________ is the selling of goods and services to other countries.

A) In-trading
B) Exporting
C) Importing
D) Dumping

Question 20

Why do companies look beyond their domestic markets to expand?

A) Cost Reduction Opportunity
B) New Market Opportunities
C) Resource Base Control
D) Closeness to Market
E) All of the above

Question 21

What surprised many analysts was the _______ in which a recession,initially focused in the United States,turned into a global recession with economic contraction occurring worldwide.

A) severity
B) insignificance
C) speed
D) harshness
E) Slowness

Question 22

Hennessy Hardware,a Canadian retailer,buys much of its inventory from Asian countries.Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports.

A) rose
B) fell
C) remained constant
D) floated unpredictably

Question 23

The outlook for growth in global trade appears to be:

A) less optimistic than in the past.
B) brighter every day.
C) unclear and lacking focus.
D) nonexistent.

Question 24

Which of the following factors does not influence the value of a nation's currency?

A) The movement in the GDP of the country in question
B) The movement in the domestic level of income
C) The competitiveness of the country in question
D) The ability of the country to maintain its rate of inflation within acceptable target ranges
E) The ability of the country to operate within an acceptable balance of trade range

Question 25

Many economists and business experts contend that ________ will likely be the growth market of the future.

A) Asia
B) Africa
C) South America
D) the Middle East

Question 26

At approximately what rate are the emerging economies expect to grow compared to the fully-developed economies of the world?

A) 2X
B) 3X
C) 1X
D) 5X
E) 0.5X

Question 27

What is Protectionism?

A) economic policies put in place to protect and/or improve the competitiveness of domestic industries
B) impeding or restricting the openness of a market or markets to foreign competitors
C) the use of tariffs, trade restrictions, or other related activities
D) the use of quotas, artificial control of currency values, or other related activities
E) all of the above

Question 28

What sectors prices are expected to continue to have a strong influence on the cost base of many businesses?

A) labour
B) energy
C) raw materials
D) goods
E) services

Question 29

_______ refers to the need for developing economies to maintain a focus on the core elements of an open economy -those being the law of supply and demand,encouragement of entrepreneurship and wealth creation,and the willingness to encourage and support private ownership.

A) Commitment to an International Trade System
B) Absence of Protectionism
C) Fundamentals of Fair Trade
D) Market Openness
E) Balanced Economic Development

Question 30

How many countries in The European Union use the Euro as a common currency?

A) 6
B) 27
C) 16
D) 10
E) 17

Question 31

What organization played a key role in the development of a solution to the sovereign debt issues challenging the governments of a number of European Union members in 2010 and 2011?

A) WTO
B) IMF
C) U.S. government
D) ECB
E) World Bank

Question 32

Which of the following statements best describes the possibilities for small businesses in global markets?

A) Small businesses have little chance of competing against giant multinational corporations in global markets.
B) Small businesses already dominate global business. In fact, most multinational corporations are actually quite small.
C) Small businesses are often better prepared to enter global markets than large, bureaucratic corporations.
D) The main problem faced by small businesses in global markets is that franchise arrangements favoured by small business owners are illegal in most countries.

Question 33

What has allowed trade to flourish?

A) individualization
B) departmentalization
C) specialization
D) division of labour
E) manufacturing

Question 34

Which of the following are NOT considered part of the BRIC countries leading emerging economy impact on the global marketplace?

A) Russia
B) Brazil
C) Italy
D) India
E) China

Question 35

When a country devalues its currency,this encourages the sale of its

A) imports.
B) domestic goods to foreign countries.
C) international goods.
D) international services.
E) debts.

Question 36

For firms interested in global markets,investments in China are considered to be:

A) too risky and not worth the effort.
B) illegal based on World Trade Organization (WTO) rulings.
C) an emerging business opportunity.
D) dependent on Yao Ming's success in the National Basketball Association.

Question 37

Trade occurs between _________.

A) countries
B) organizations
C) individuals
D) a) and b)
E) b) and c)

Question 38

Which of the following represents the value of one nation's currency relative to the currencies of another country?

A) Euro rate
B) Currency rate
C) Exchange rate
D) Standard of living

Question 39

The ability of governments and their central banks to manage monetary and credit policy _______,will have significant bearing on inflationary pressures in the years to come.

A) separately
B) individually
C) jointly
D) a) and b)
E) b) and c)

Question 40

Which of the following is NOT one of the six fundamentals which governments globally need to commit to,are the following:

A) Commitment to an International Trade System
B) Market Openness
C) Protectionism
D) Fundamentals of Fair Trade
E) Balanced Economic Development

Question 41

been?

A) 12
B) 2
C) 17
D) 5
E) 8

Question 42

Which of the following is NOT a requirement for competing in today's global economy?

A) efficient and effective production and manufacturing systems
B) well-organized and expertly-supported trade facilitation processes
C) efficient and effective resource allocation
D) well-organized and expertly-supported distribution logistics
E) solid network of financial intermediation and support.

Question 43

Which of the following in NOT part of the whole new set of employment and organizational structure requirements and challenges?

A) Cultural and social issues relating to staffing
B) Cultural and social issues, relating to customer attitudes
C) Cultural and social issues, relating to foreign market needs
D) Protectionist attitudes within some governments
E) Issues related to foreign market needs

Question 44

Which of the following is NOT a reason that the United States dollar remains the benchmark currency?

A) The size of the U.S. economy
B) The position of the U.S. as the predominant purchaser of goods and services globally
C) The historical strong U.S. economic growth
D) The political flexibility of the U.S.
E) The U.S. sovereign debt

Question 45

In expanding internationally,what issues will managers find demand more and more of their time?

A) liquidity and solvency
B) risk management (market, financial, intellectual property)
C) global technology-based connectivity
D) sovereign debt
E) b) and c)

Question 46

In expanding internationally,what issues will managers find demand more and more of their time?

A) liquidity and solvency
B) risk management (market, financial, intellectual property)
C) global technology-based connectivity
D) sovereign debt
E) b) and c)

Question 47

If Canada wanted to reduce the cost of its goods in foreign markets,it could

A) revalue its currency.
B) devalue its currency.
C) pay off its trade deficit.
D) borrow from the Exim bank.
E) sell more goods abroad.

Question 48

been?

A) 12
B) 2
C) 17
D) 5
E) 8

Question 49

Franchising is popular both domestically and internationally.

Question 50

Which of the following is NOT a core component behind the rise of the developing economies of the world?

A) concept of trade
B) capital investment
C) enhanced purchasing power for consumers
D) seeking the most productive and cost-effective systems for the manufacturing of goods and services
E) seeking the most productive and cost-effective systems for the delivery of goods and services

Question 51

Small businesses are less involved in global trade today than in the past.

Question 52

If your business has an outstanding product,exporting offers an easy way to improve your profitability.

Question 53

When competing in global markets,business organizations can choose among a variety of ways to reach foreign buyers.

Question 54

Which of the following terms describes the set of values,beliefs,rules,language,and institutions held by a specific group of people?

A) Culture
B) Ethnocentricity
C) Institutional society
D) Social myopia

Question 55

Paula,a Canadian businessperson who closely follows international business conditions,recently read a newspaper article predicting that the value of the dollar will soon fall.If this article is correct,Paula should expect:

A) prices of imported goods to rise, and prices of Canadian goods sold overseas to rise as well.
B) prices of imported goods to rise, but prices of Canadian goods sold overseas to fall.
C) prices of imported goods to fall, and prices of Canadian goods sold overseas to fall as well.
D) prices of imported goods to fall, but prices of Canadian goods sold overseas to rise.

Question 56

Exporting is the purchase of products from another nation.

Question 57

Just about anything that can be sold in Canada can also be sold to buyers in other countries.

Question 58

Exporting is available only to large corporations.

Question 59

What is a one tenth of one percentage point increase in imports growth of the Chinese economy worth to Canada?

A) $250 billion
B) $20 billion
C) $10 billion
D) $100 billion
E) $5 billion

Question 60

Which of the following is NOT a requirement for competing in today's global economy?

A) efficient and effective production and manufacturing systems
B) well-organized and expertly-supported trade facilitation processes
C) efficient and effective resource allocation
D) well-organized and expertly-supported distribution logistics
E) solid network of financial intermediation and support.

Question 61

The main purpose of a protective tariff is to increase the tax revenue of the government.

Question 62

Free trade results in a mutually beneficial exchange for the countries involved.

Question 63

While China presents an important source of Canadian imports,few export opportunities exist for Canadian firms to sell goods and services to Asian consumers.

Question 64

An import quota is a complete ban on the import or export of certain products.

Question 65

Profitable opportunities in the global markets are diminishing for small and medium sized businesses.

Question 66

Non-tariff barriers can be just as detrimental to free trade as tariffs.

Question 67

An increase in the exchange rate value of the dollar causes the dollar price of foreign made goods to decrease.

Question 68

Free trade is the movement of goods and services among nations without political or economic obstruction.

Question 69

was established to mediate trade disputes and oversee global business practices.

Question 70

As a market for Canadian exports,China represents the only major business opportunity for Canadian firms in Asia today.

Question 71

Protective tariffs are designed to raise money for the government.

Question 72

is to increase national subsidies on agricultural products.

Question 73

Only large firms have the resources needed to successfully compete in the global environment.

Question 74

China presents enormous trade opportunities.However,due to political risks in that country,little progress on trade has been made.

Question 75

An exchange rate is the value of one nation's currency relative to the currencies of other nations.

Question 76

Countries often used trade protectionism measures to protect their domestic industries from foreign competition.

Question 77

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Question 78

Trade protectionism is the use of government regulations to encourage the import of goods and services.

Question 79

Direct investment is the least risky and least expensive way to participate in foreign trade.

Question 80

Currency fluctuations can be an advantage to firms trading in the global market.