Question 1

In which international organization structure does a firm have greatest control over foreign activities?

Accepted Answer

A)  exporting arrangements 
B)  strategic alliances 
C)  importing arrangements 
D)  licensing arrangements 
E)  independent agents

Question 2

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following BEST describes a positive trade balance?

Accepted Answer

A)  the economic condition in which a country's exports exceed its imports 
B)  the economic condition in which a country's imports exceed its exports 
C)  the economic condition in which a country's inflow of money exceeds its outflow 
D)  the economic condition in which a country's outflow of money exceeds its inflow 
E)  the economic condition in which a country's natural resources exceed its human resources

Question 4

Which of the following is a government payment to help a domestic business compete with foreign firms?

Accepted Answer

A)  revenue tariff 
B)  protectionist tariff 
C)  import buy-back 
D)  export rebate 
E)  subsidy

Question 5

Bridget wants to buy some English tea priced at 10 pounds from an online seller.The current exchange rate is 1.5 dollars to the pound.How much she will pay for the tea (excluding any upfront exchange fees)?

Accepted Answer

A)  $15.00 
B)  $12.50 
C)  $11.50 
D)  $8.50 
E)  $6.67

Question 6

Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy,because the company might want to choose a more advanced entry strategy later.Which of the following,if true,would strengthen this position?

Accepted Answer

A)  Foreign partners usually want to enter into contractual agreements with American companies for a long-term period. 
B)  A contractual agreement should spell out as many expectations of the foreign partner as possible. 
C)  Contractual agreements should be entered into only if the foreign partner is extremely reliable. 
D)  Contractual agreements require approval by legal specialists from all countries involved. 
E)  Contractual agreements allow a company to provide for open, flexible terms of operation.

Question 7

Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?

Accepted Answer

A)  tariff 
B)  embargo 
C)  subsidy 
D)  local content law 
E)  business practice law

Question 8

NAFTA regulates trade between the United States,Europe,and Japan.

Accepted Answer

A) True 
 B)False

Question 9

Other than a quota,embargo,or tariff,what legal barriers might the United States use to discourage the importation of cell phones?

Accepted Answer

The answer of Other than a quota,embargo,or tariff,what legal barriers...

Question 10

Which statement is true regarding independent agents?

Accepted Answer

A)  They represent one firm at a time. 
B)  They usually specialize in a particular product. 
C)  They act as sales representatives. 
D)  They are usually based at domestic offices. 
E)  They do not monitor or address customer satisfaction.

Question 11

What are two specific reasons why a company might decide NOT to conduct business internationally?

Accepted Answer

The answer of What are two specific reasons why a...

Question 12

Critics of protectionism charge that it drives up prices by reducing competition.

Accepted Answer

A) True 
 B)False

Question 13

Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market,and goes on to argue that this will be advantageous to the company.Which of the following,if true,would strengthen this argument?

Accepted Answer

A)  Consumers in many countries have limited resources with which they can purchase entertainment. 
B)  Consumers in many countries are wary of what they perceive as American cultural imperialism. 
C)  Contractual agreements usually require the foreign partner to display the originating firm's brand as prominently as possible. 
D)  Contractual agreements initiated by an American company often make for contentious relationships with the foreign partner. 
E)  Foreign consumers briefly resist cultural imperialism but then quickly embrace American cultural products.

Question 14

Which of the following,if true,would weaken the argument for exporting the company's products to China?

Accepted Answer

A)  Lite Foods will have to make significant investments if it decides to enter a joint venture in China. 
B)  Lite Foods would have to hire sales personnel from the host country if it opts for direct export. 
C)  Lite Foods is a risk-averse organization. 
D)  Lite Foods lacks Chinese market expertise and has not found reliable intermediaries with expertise in the market. 
E)  Lite Foods will export its products as is, as more and more Chinese consumers are adopting breakfast cereals.

Question 15

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Accepted Answer

A)  floating 
B)  indexed 
C)  fixed 
D)  adjusted 
E)  deflated

Question 16

Which of the following nations is NOT contained within a major world economic marketplace?

Accepted Answer

A)  Canada 
B)  Greece 
C)  Taiwan 
D)  Singapore 
E)  Honduras

Question 17

Which organization MOST likely has the greatest impact on Asian countries?

Accepted Answer

A)  ASEAN 
B)  UAS 
C)  EU 
D)  NAFTA 
E)  ECOWAS

Question 18

Which of the following,if true,would strengthen the argument for exporting the company's products to China?

Accepted Answer

A)  Lite Foods has a large budget set aside for foreign direct investments. 
B)  Lite Foods wants to have strict control over its international operations. 
C)  Lite Foods has to modify its product line to suit Chinese tastes and preferences. 
D)  Lite Foods' products do not have a "healthy" reputation in the United States. 
E)  Lite Foods has significant excess capacity that results in production overruns.

Question 19

Which country is the world's largest marketplace and most stable economy?

Accepted Answer

A)  the United States 
B)  Canada 
C)  Germany 
D)  Japan 
E)  China

Question 20

Which of the following countries is the world's third largest economy,behind that of the United States and European Union?

Accepted Answer

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

Exam 4: Understanding the Global Context of Business

In which international organization structure does a firm have greatest control over foreign activities?

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

Which of the following BEST describes a positive trade balance?

Which of the following is a government payment to help a domestic business compete with foreign firms?

Bridget wants to buy some English tea priced at 10 pounds from an online seller.The current exchange rate is 1.5 dollars to the pound.How much she will pay for the tea (excluding any upfront exchange fees) ?

Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy,because the company might want to choose a more advanced entry strategy later.Which of the following,if true,would strengthen this position?

Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?

NAFTA regulates trade between the United States,Europe,and Japan.

Other than a quota,embargo,or tariff,what legal barriers might the United States use to discourage the importation of cell phones?

Which statement is true regarding independent agents?

What are two specific reasons why a company might decide NOT to conduct business internationally?

Critics of protectionism charge that it drives up prices by reducing competition.

Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market,and goes on to argue that this will be advantageous to the company.Which of the following,if true,would strengthen this argument?

Which of the following,if true,would weaken the argument for exporting the company's products to China?

With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?

Which of the following nations is NOT contained within a major world economic marketplace?

Which organization MOST likely has the greatest impact on Asian countries?

Which of the following,if true,would strengthen the argument for exporting the company's products to China?

Which country is the world's largest marketplace and most stable economy?

Which of the following countries is the world's third largest economy,behind that of the United States and European Union?