Question 1

Explain why foreign direct investment is often the riskiest, most complex, and most involved of the various types of international involvement.

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Question 2

KFC's dishes in China come with a side order of rice and soy milk. This is an example of
over-expansion without support for repairing the product.
adapting to customer needs.
misreading demand for the product.
overpricing caused by exchange rate changes.
a poor business environment for foreign goods.

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The answer of KFC's dishes in China come with a...

Question 3

The results for Canada from the North American Free Trade Agreement include all of the following except
Canada has become an exporting powerhouse.
direct foreign investment increased.
Canada now exports 40 percent of its GDP.
U.S. imports from (and exports) to Mexico increased.
Canada is the least trade-intensive country in the G7 group.

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The answer of The results for Canada from the North...

Question 4

The major reasons why Mexico has recently become a major manufacturing centre are
cheap labour and low transportation costs.
elimination of quotas and tariffs and low tax rates.
low tax rates and cheap labour.
cheap labour and elimination of quotas and tariffs.
low transportation costs and low tax rates.

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Question 5

Herald Inc., a French newsprint manufacturer, is geared towards international markets but does not have specific domestic and international divisions. This firm is a(n)
multinational firm.
exporter.
independent agent.
purely domestic firm.
customs broker.

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The answer of Herald Inc., a French newsprint manufacturer, is...

Question 6

Examples of true absolute advantage are rare.

Accepted Answer

A) True 
 B)False

Question 7

What is the implication for a manufacturer of electrically powered equipment contemplating international operation upon learning of the wide variety of electric outlets around the world?
Modify the product to meet the standards of different countries
Deal with independent agents
Delay international operations until the currency exchange rate is favourable
Drop the idea of international operation
None of these

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The answer of What is the implication for a manufacturer...

Question 8

A firm that produces goods in one country and distributes and sells them in other countries is
a multinational firm.
an exporter.
an international firm.
a joint venture.
an importer.

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The answer of A firm that produces goods in one...

Question 9

Dumping involves selling products at
less than fair value.
less than what domestic producers charge.
less than what is reasonable.
a lower price than competitors.
less in one country than another.

Accepted Answer

The answer of Dumping involves selling products at
less than fair...

Question 10

When Manulife Financial entered the Chinese market, it made an agreement with Sinochem, a state-owned trading company. This is an example of
a strategic alliance.
world product mandating.
a licensing arrangement.
a branch office.
an independent agent.

Accepted Answer

The answer of When Manulife Financial entered the Chinese market,...

Question 11

Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?

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The answer of Why would two companies, both earning large...

Question 12

A nation's balance of trade is
the relative difference between money flowing into and out of a country.
the difference in value between a country's total exports and its total imports.
the relative difference in value between a country's total exports and its total imports.
the difference between money flowing into and out of a country.
the difference in exchange rates between two countries.

Accepted Answer

The answer of A nation's balance of trade is
the relative...

Question 13

What are the three basic levels of involvement in international business?

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Exam 5: The Global Context of Business

Explain why foreign direct investment is often the riskiest, most complex, and most involved of the various types of international involvement.

Herald Inc., a French newsprint manufacturer, is geared towards international markets but does not have specific domestic and international divisions. This firm is a(n) multinational firm. exporter. independent agent. purely domestic firm. customs broker.

Examples of true absolute advantage are rare.

A firm that produces goods in one country and distributes and sells them in other countries is a multinational firm. an exporter. an international firm. a joint venture. an importer.

Dumping involves selling products at less than fair value. less than what domestic producers charge. less than what is reasonable. a lower price than competitors. less in one country than another.

When Manulife Financial entered the Chinese market, it made an agreement with Sinochem, a state-owned trading company. This is an example of a strategic alliance. world product mandating. a licensing arrangement. a branch office. an independent agent.

Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?

What are the three basic levels of involvement in international business?