Question 1

What are the BRICS countries,and why have they become important?

Accepted Answer

The answer of What are the BRICS countries,and why have...

Question 2

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 a(n)

Accepted Answer

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

Question 3

In the World Economic Forum's 2018 global competitiveness ranking,Canada ranked

Accepted Answer

A) first. 
B) second. 
C) fourth. 
D) sixth. 
E) fifteenth.

Question 4

Derrido is an American firm that has produced several successful animated TV series in the United States.It is considering contracting with one or more international companies to market its products overseas. 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 concerned with 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 5

International firms conduct a significant portion of their business abroad,but their primary focus remains on the domestic market.

Accepted Answer

A) True 
 B)False

Question 6

Country Z can produce pig iron (an intermediate product in the iron industry which is also called crude iron)more efficiently than any other country.Which type of advantage in pig iron does Country Z have?

Accepted Answer

A) Absolute advantage 
B) National competitive advantage 
C) Comparative advantage 
D) Trade balance advantage 
E) Resource advantage

Question 7

The first decision in determining whether a company should go international is to determine if the company's products can be modified to fit a foreign market.

Accepted Answer

A) True 
 B)False

Question 8

What are the three goals of the World Trade Organization (WTO)?

Accepted Answer

The answer of What are the three goals of the...

Question 9

What is product dumping?

Accepted Answer

The answer of What is product dumping?...

Question 10

Which of the following is correct regarding the barriers to international trade?

Accepted Answer

A) Research clearly demonstrates that differences in culture are the most important barrier. 
B) The two general categories where barriers exist are in command and market economies. 
C) An embargo is an extreme form of a tariff. 
D) Local content laws apply only to situations across international borders. 
E) When Google agreed to pay $500 million to settle a case with the U.S.government over advertising revenue earned from Canadian online pharmacies,this was an example of business practice laws being violated.

Question 11

What are the three major marketplaces in the contemporary world economy?

Accepted Answer

The answer of What are the three major marketplaces in...

Question 12

Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

Accepted Answer

A) True 
 B)False

Question 13

A foreign individual or organization that agrees to represent an exporter's interests is which of the following?

Accepted Answer

A) Foreign representative 
B) International broker 
C) Global intermediary 
D) Independent agent 
E) Corporate officer

Question 14

________ is an example of an export of a service.

Accepted Answer

A) An advertising agency in Montreal making a TV commercial for a company in France 
B) Obtaining information from a foreign database 
C) Vacations taken by Canadians in a foreign country 
D) Purchasing a smartphone made in China 
E) A Canadian tourist having a camera repaired in Egypt

Question 15

Derrido is an American firm that has produced several successful animated TV series in the United States.It is considering contracting with one or more international companies to market its products overseas. One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally.Which of the following,if true,would strengthen this position?

Accepted Answer

A) Contractual relationships allow an originating firm to make the most use of local talent. 
B) Contractual relationships cannot capture unpredictable future contingencies. 
C) Contractual relationships are often cross-culturally contentious. 
D) Derrido would not be undertaking large-scale production or shipping operations. 
E) Derrido is a large company with ample staff and resources at its disposal.

Question 16

Why might social and cultural differences prevent a firm in one country from exporting their products to another country?

Accepted Answer

The answer of Why might social and cultural differences prevent...

Question 17

Which of the following is a product made or grown domestically but shipped and sold abroad?

Accepted Answer

A) Local commodity 
B) National brand 
C) Export 
D) Import 
E) Internal item

Question 18

Why have the number of strategic alliances among major companies increased significantly over the last decade?

Accepted Answer

The answer of Why have the number of strategic alliances...

Question 19

There is no practical difference between an embargo and a quota if the quota is zero.

Accepted Answer

A) True 
 B)False

Question 20

The World Bank,an agency of the United Nations,uses per capita income as a measure to divide countries into one of four groups.Distinguish among the four groups and identify the countries in each group.

Accepted Answer

The answer of The World Bank,an agency of the United...

Exam 5: The Global Context of Business

What are the BRICS countries,and why have they become important?

In the World Economic Forum's 2018 global competitiveness ranking,Canada ranked

International firms conduct a significant portion of their business abroad,but their primary focus remains on the domestic market.

Country Z can produce pig iron (an intermediate product in the iron industry which is also called crude iron) more efficiently than any other country.Which type of advantage in pig iron does Country Z have?

The first decision in determining whether a company should go international is to determine if the company's products can be modified to fit a foreign market.

What are the three goals of the World Trade Organization (WTO)?

What is product dumping?

Which of the following is correct regarding the barriers to international trade?

What are the three major marketplaces in the contemporary world economy?

Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

A foreign individual or organization that agrees to represent an exporter's interests is which of the following?

________ is an example of an export of a service.

Why might social and cultural differences prevent a firm in one country from exporting their products to another country?

Which of the following is a product made or grown domestically but shipped and sold abroad?

Why have the number of strategic alliances among major companies increased significantly over the last decade?

There is no practical difference between an embargo and a quota if the quota is zero.

The World Bank,an agency of the United Nations,uses per capita income as a measure to divide countries into one of four groups.Distinguish among the four groups and identify the countries in each group.