Question 1

When Walmart was forced to stop refunding price differences on items sold for less by other stores because the practice is illegal in Germany,Walmart discovered the effect of

Accepted Answer

A)  revenue tariffs. 
B)  embargoes. 
C)  business practice laws. 
D)  protectionist tariffs. 
E)  world product mandating.

Question 2

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ________,and the most corrupt countries are ________.

Accepted Answer

A)  Denmark,New Zealand,and Sweden; Chad and Somalia 
B)  Iceland,Denmark,and New Zealand; Haiti and Myanmar 
C)  Canada,the U.S.,and New Zealand; Myanmar and Chad 
D)  Denmark,New Zealand,and Singapore; Myanmar,Afghanistan,and Somalia 
E)  Ireland,the U.S.,and Canada; Zambia and Libya

Question 3

Supporters of free trade in Canada argued all of the following except

Accepted Answer

A)  Canadian imports would increase because of free trade. 
B)  there is nothing in the free trade agreements that threatens Canada's control over its energy resources. 
C)  access to U.S.markets is guaranteed by free trade and is therefore crucial to protecting Canadian employment. 
D)  the environment is not covered in free trade agreements. 
E)  the free trade agreements are about trade and tariffs,not cultural sovereignty.

Question 4

Other things being equal,an increase in our exports to the rest of the world will improve Canada's balance of payments situation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

Accepted Answer

A)  Consumers shop on a daily basis. 
B)  The average age of the population is younger. 
C)  The average age of the population is older. 
D)  Adjusted menus,ingredients,and hours of operation 
E)  Foreign consumers are shorter and slimmer than Canadian consumers.

Question 6

Your television set,your shoes,even the roast lamb on your dinner table is likely to be the result of

Accepted Answer

A)  importing. 
B)  subsidies. 
C)  foreign exchange. 
D)  a trade deficit. 
E)  exporting.

Question 7

Due to its capital-intensive and efficient land use,Canada has a(n)________ in farming.

Accepted Answer

A)  export advantage 
B)  import advantage 
C)  comparative advantage 
D)  relative advantage 
E)  absolute advantage

Question 8

In some South American countries,it may be legal to bribe businesses and government officials,but this practice is illegal in Canada.This barrier to international trade is known as

Accepted Answer

A)  imposing tariffs. 
B)  quotas. 
C)  local content laws. 
D)  business practice laws. 
E)  cartelling.

Question 9

A nation's balance of trade is

Accepted Answer

A)  the relative difference between money flowing into and out of a country. 
B)  the difference in value between a country's total exports and its total imports. 
C)  the relative difference in value between a country's total exports and its total imports. 
D)  the absolute difference between money flowing into and out of a country. 
E)  the difference in exchange rates between two countries.

Question 10

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

Accepted Answer

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

Question 11

If a Canadian architect designs a house in Brazil,this is an example of an import of a service.

Accepted Answer

A) True 
 B)False

Question 12

When Bob began exporting his famous barbecue beef he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)

Accepted Answer

A)  embargo. 
B)  local content law. 
C)  quota. 
D)  tariff. 
E)  subsidy.

Question 13

A licensing arrangement exists when the owner of a product or process allows another business to produce,distribute,or market it for a fee or royalty.

Accepted Answer

A) True 
 B)False

Question 14

Importing and exporting represent the lowest level of involvement in international operations.

Accepted Answer

A) True 
 B)False

Question 15

With regard to exchange rates,it is correct to say that

Accepted Answer

A)  they affect trade balances. 
B)  they typically vary substantially on a daily basis. 
C)  they do not vary with market conditions. 
D)  changes affect only narrow product lines,not all products. 
E)  as the value of a country's currency falls,foreign companies have less incentive to ship products into that country.

Question 16

Because it improves the economies to such a great extent,governments generally encourage unrestricted trade with foreign countries.

Accepted Answer

A) True 
 B)False

Question 17

Canada ranks first among the G8 countries in the proportion of its production that is exported.

Accepted Answer

A) True 
 B)False

Question 18

Countries tend to export products that they can produce better or less expensively than other countries,and import products they cannot produce as effectively.

Accepted Answer

A) True 
 B)False

Question 19

According to the World Bank,high-income countries include all of the following except

Accepted Answer

A)  Japan. 
B)  U.S. 
C)  Canada. 
D)  South Korea. 
E)  Poland.

Question 20

________ 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 camera made in Japan 
E)  A Canadian tourist having a camera repaired in Egypt

Exam 5: The Global Context of Business

When Walmart was forced to stop refunding price differences on items sold for less by other stores because the practice is illegal in Germany,Walmart discovered the effect of

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ,and the most corrupt countries are .

Supporters of free trade in Canada argued all of the following except

Other things being equal,an increase in our exports to the rest of the world will improve Canada's balance of payments situation.

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

Your television set,your shoes,even the roast lamb on your dinner table is likely to be the result of

Due to its capital-intensive and efficient land use,Canada has a(n) ________ in farming.

In some South American countries,it may be legal to bribe businesses and government officials,but this practice is illegal in Canada.This barrier to international trade is known as

A nation's balance of trade is

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

If a Canadian architect designs a house in Brazil,this is an example of an import of a service.

When Bob began exporting his famous barbecue beef he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)

A licensing arrangement exists when the owner of a product or process allows another business to produce,distribute,or market it for a fee or royalty.

Importing and exporting represent the lowest level of involvement in international operations.

With regard to exchange rates,it is correct to say that

Because it improves the economies to such a great extent,governments generally encourage unrestricted trade with foreign countries.

Canada ranks first among the G8 countries in the proportion of its production that is exported.

Countries tend to export products that they can produce better or less expensively than other countries,and import products they cannot produce as effectively.

According to the World Bank,high-income countries include all of the following except

________ is an example of an export of a service.