Question 1

Over 95 percent of the exporters in the U.S.are very large businesses.

Accepted Answer

A) True 
 B)False

Question 2

Global trade only includes the trade of manufactured goods.

Accepted Answer

A) True 
 B)False

Question 3

A tariff is a tax on imported goods.

Accepted Answer

A) True 
 B)False

Question 4

One advantage of engaging in business globally is the businesses have entirely new markets in which to sell their products.

Accepted Answer

A) True 
 B)False

Question 5

The difference between a joint venture and a strategic alliance is that typically a joint venture does not involve sharing costs,risks,management or even profits.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Franchising differs from licensing in that where franchising is for a single product,licensing allows the use of an entire concept including the label,how the good is manufactured or made and the look and feel of the business.

Accepted Answer

A) True 
 B)False

Question 8

__________ exists when products are sold in a country below what it cost to produce the product.

Accepted Answer

A)  Perfect competition 
B)  Monopolistic competition 
C)  A gray market 
D)  Dumping

Question 9

Global business is far easier than domestic business.

Accepted Answer

A) True 
 B)False

Question 10

Why is the exchange rate important in global markets?

Accepted Answer

A)  If the value of the dollar is high, the products of foreign producers are more expensive because it takes more dollars to buy them 
B)  To earn the highest amount of profit the trading currency must remain low and stable 
C)  Labor costs can vary considerably as currency values shift 
D)  The exchange rate is unimportant in global markets

Question 11

One benefit of a joint venture is that the firms involved can share technology.

Accepted Answer

A) True 
 B)False

Question 12

__________ trade is the movement of goods and services among nations without political or economic trade barriers.

Accepted Answer

The answer of __________ trade is the movement of goods...

Question 13

Mercosur is an example of a common market.

Accepted Answer

A) True 
 B)False

Question 14

Contract manufacturing involves a foreign company's production of private label goods to which a domestic company then attaches its own brand name or trademark.

Accepted Answer

A) True 
 B)False

Question 15

Bartering is the exchange of merchandise for other merchandise or service for money.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Most absolute advantage situations involve __________ that one country has and others do not have.

Accepted Answer

A)  Natural resources 
B)  Monopolistic competition 
C)  Inexpensive labor 
D)  Brain drain

Question 18

__________ advantage theory states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products it cannot produce as effectively or efficiently.

Accepted Answer

The answer of __________ advantage theory states that a country...

Question 19

A foreign subsidiary is a company that is owned in the home country by a foreign company.

Accepted Answer

A) True 
 B)False

Question 20

List the six different strategies for reaching global markets.

Accepted Answer

The answer of List the six different strategies for reaching...

Exam 11: Creating Products and Pricing Strategies to Meet Customers Needs

Over 95 percent of the exporters in the U.S.are very large businesses.

Global trade only includes the trade of manufactured goods.

A tariff is a tax on imported goods.

One advantage of engaging in business globally is the businesses have entirely new markets in which to sell their products.

The difference between a joint venture and a strategic alliance is that typically a joint venture does not involve sharing costs,risks,management or even profits.

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

Franchising differs from licensing in that where franchising is for a single product,licensing allows the use of an entire concept including the label,how the good is manufactured or made and the look and feel of the business.

__________ exists when products are sold in a country below what it cost to produce the product.

Global business is far easier than domestic business.

Why is the exchange rate important in global markets?

One benefit of a joint venture is that the firms involved can share technology.

__________ trade is the movement of goods and services among nations without political or economic trade barriers.

Mercosur is an example of a common market.

Contract manufacturing involves a foreign company's production of private label goods to which a domestic company then attaches its own brand name or trademark.

Bartering is the exchange of merchandise for other merchandise or service for money.

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

Most absolute advantage situations involve __________ that one country has and others do not have.

__________ advantage theory states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products it cannot produce as effectively or efficiently.

A foreign subsidiary is a company that is owned in the home country by a foreign company.

List the six different strategies for reaching global markets.