Question 1

The major purposes of the General Agreement on Tariffs and Trade (GATT) include encouraging free trade, regulating and reducing tariffs, and providing a forum for resolving trade disputes.

Accepted Answer

A) True 
 B)False

Question 2

Under NAFTA, (North American Free Trade Association) the United States, Canada, and Mexico are free to produce what each country produces best and trade its goods and services without devaluing its currency.

Accepted Answer

A) True 
 B)False

Question 3

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.?made products in its own country, using your name and your processes and perhaps your intellectual property.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is among possible advantages of membership in the European Union (EU)?

Accepted Answer

A) The EU allows unrestricted trade among member nations. 
B) The EU permits anyone with an EU passport to work in any EU nation. 
C) The EU guarantees starting salaries for government workers in any EU nation. 
D) The EU enhances political and social cooperation among its members.

Question 5

High domestic ____ costs have made international contract manufacturing, or outsourcing, attractive to many U.S.companies.

Accepted Answer

A) building 
B) material 
C) labor 
D) marketing

Question 6

If a country is the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries we say that the country has an absolute advantage in economic terms.

Accepted Answer

A) True 
 B)False

Question 7

What purposes can a strategic alliance serve?

Accepted Answer

The answer of What purposes can a strategic alliance serve?...

Question 8

Women's bathing suits can be produced in foreign countries at a lower cost than in the U.S.When women's bathing suits are shipped into the U.S., their price is raised about 14% to allow the U.S.bathing suit industry to remain competitive.This is accomplished through a(n) _______

Accepted Answer

A) tariff 
B) quota 
C) embargo 
D) subsidy

Question 9

The U.S.government may try to keep Yokahama's prices more competitive with those of American?made goods by placing a tax, called an embargo, on Yokahama imports.

Accepted Answer

A) True 
 B)False

Question 10

When communicating with other countries, you should regard cultural _____ as inappropriate and treat businesspeople as _____.

Accepted Answer

A) mores / group members 
B) prejudices / individuals 
C) stereotypes / individuals 
D) stereotypes / free agents

Question 11

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n) ____ advantage.

Accepted Answer

A) comparative 
B) resource/input 
C) absolute 
D) hard core technological

Question 12

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Accepted Answer

A) True 
 B)False

Question 13

Scenario-Based
Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States.Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries.Thus far, research has shown that the rights to use many of the firm's recipes can be sold to other restaurants, cafeterias, and food stores.Cajun can also sell prepackaged food products, complete with spices, to other markets.At this point, whether to start by opening company-owned outlets or selling franchises is still a toss?up.In any case, the long-term picture looks good.
-In selling recipe rights to buyers in foreign markets, Cajun would be engaged in _____.

Accepted Answer

A) licensing 
B) franchising 
C) exporting 
D) outsourcing

Question 14

It is parents' weekend and your parents will arrive at your dorm in an hour.There are two tasks left to be done: washing the dishes and vacuuming.You and your roommate have agreed to divide up the work.In the past, you have been able to do the dishes in 30 minutes and vacuum in 15 minutes.Your roommate takes 40 minutes to do the dishes and 60 minutes to vacuum.Based on this scenario:

Accepted Answer

A) you have an absolute advantage in both jobs and a comparative advantage in doing dishes. 
B) your roommate has an absolute advantage in doing dishes and a comparative advantage in vacuuming. 
C) you have an absolute advantage in both jobs and a comparative advantage in vacuuming. 
D) neither of you has an absolute advantage in either tasks, and you have a comparative advantage in vacuuming.

Question 15

The United States is currently experiencing an international trade _____.

Accepted Answer

A) balance 
B) surplus 
C) equilibrium 
D) deficit

Question 16

If the U.S.dollar goes up relative to a foreign currency, buyers using that currency pay ____ for American goods and services.

Accepted Answer

A) less 
B) more 
C) in American currency 
D) exorbitant prices

Question 17

Under NAFTA (North American Free Trade Association), the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.

Accepted Answer

A) restrictions 
B) taxes 
C) job losses 
D) currency devaluation

Question 18

The United States currently enjoys an international trade equilibrium.

Accepted Answer

A) True 
 B)False

Question 19

In economic terms, "balance of payments" refers to the difference between a country's total outflows and inflows of money over a period of time.

Accepted Answer

A) True 
 B)False

Question 20

While importing is widely practiced throughout the world, exporting is not.

Accepted Answer

A) True 
 B)False

Exam 9: Business in a Global Environment

The major purposes of the General Agreement on Tariffs and Trade (GATT) include encouraging free trade, regulating and reducing tariffs, and providing a forum for resolving trade disputes.

Under NAFTA, (North American Free Trade Association) the United States, Canada, and Mexico are free to produce what each country produces best and trade its goods and services without devaluing its currency.

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.?made products in its own country, using your name and your processes and perhaps your intellectual property.

Which of the following is among possible advantages of membership in the European Union (EU) ?

High domestic ____ costs have made international contract manufacturing, or outsourcing, attractive to many U.S.companies.

If a country is the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries we say that the country has an absolute advantage in economic terms.

What purposes can a strategic alliance serve?

Women's bathing suits can be produced in foreign countries at a lower cost than in the U.S.When women's bathing suits are shipped into the U.S., their price is raised about 14% to allow the U.S.bathing suit industry to remain competitive.This is accomplished through a(n) _______

The U.S.government may try to keep Yokahama's prices more competitive with those of American?made goods by placing a tax, called an embargo, on Yokahama imports.

When communicating with other countries, you should regard cultural _ as inappropriate and treat businesspeople as _.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n) ____ advantage.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

The United States is currently experiencing an international trade _____.

If the U.S.dollar goes up relative to a foreign currency, buyers using that currency pay ____ for American goods and services.

Under NAFTA (North American Free Trade Association) , the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.

The United States currently enjoys an international trade equilibrium.

In economic terms, "balance of payments" refers to the difference between a country's total outflows and inflows of money over a period of time.

While importing is widely practiced throughout the world, exporting is not.