Question 1

The Foreign Corrupt Practices Act, which prohibits the distribution of bribes, can put American businesspeople at a competitive disadvantage.

Accepted Answer

A) True 
 B)False

Question 2

Describe the common methods that nations use to control trade across their borders.

Accepted Answer

The answer of Describe the common methods that nations use...

Question 3

When a Chinese company sells digital cameras in the U.S. below the price of domestically produced digital cameras, the company is following a practice called dumping.

Accepted Answer

A) True 
 B)False

Question 4

Ben Franklin's adage "Time is money" is now an accepted principle _____.

Accepted Answer

A)  in the United States 
B)  in Englishspeaking countries 
C)  in the Western world 
D)  around the world

Question 5

Compare international licensing with international contract manufacturing (or outsourcing).

Accepted Answer

The answer of Compare international licensing with international contract manufacturing...

Question 6

To offset the dumping of goods on its soil, a country will usually _____.

Accepted Answer

A)  cut off diplomatic relations with the offending country 
B)  impose punitive tariffs on dumped goods 
C)  impose quotas on competing goods 
D)  force domestic businesses to boycott dumped goods

Question 7

As a U.S. farmer who receives a subsidy, you're guaranteed a certain price for your output regardless of the market price.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

In _____ cultures, personal and work relationships tend to be compartmentalized.

Accepted Answer

A)  low-context 
B)  high -context 
C)  contextually disparate 
D)  homogeneous

Question 11

According to the independent organization Transparency International, _____ suffers less business corruption than any other country.

Accepted Answer

A)  the United States 
B)  Denmark 
C)  Finland 
D)  Sweden

Question 12

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

Accepted Answer

A) True 
 B)False

Question 13

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Accepted Answer

A) True 
 B)False

Question 14

The World Bank annually loans approximately $70 billion to poor and developing nations, which can use the money for health, nutrition, and education.

Accepted Answer

A) True 
 B)False

Question 15

The largest factors in a country's balance of payments consist of revenues from tourism and welfare benefits paid to citizens and immigrants.

Accepted Answer

A) True 
 B)False

Question 16

Under a(n) _____ between a U.S.based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model.

Accepted Answer

A)  international franchising agreement 
B)  international licensing agreement 
C)  strategic alliance 
D)  outsourcing contract

Question 17

Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico

Accepted Answer

A)  EU (European Union) 
B)  MERCOSUR (for Mercado Commun del Sur) 
C)  NAFTA (North American Free Trade Association) 
D)  ASEAN (the Association of Southeast Asian Nations)

Question 18

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy

Accepted Answer

The answer of What role do balance of trade, trade...

Question 19

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 20

Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S. company's products, using your name and processes and perhaps your intellectual property.

Accepted Answer

A)  international franchising agreement 
B)  international licensing agreement 
C)  strategic alliance 
D)  outsourcing contract

Exam 3: Business in a Global Environment

The Foreign Corrupt Practices Act, which prohibits the distribution of bribes, can put American businesspeople at a competitive disadvantage.

Describe the common methods that nations use to control trade across their borders.

When a Chinese company sells digital cameras in the U.S. below the price of domestically produced digital cameras, the company is following a practice called dumping.

Ben Franklin's adage "Time is money" is now an accepted principle _____.

Compare international licensing with international contract manufacturing (or outsourcing).

To offset the dumping of goods on its soil, a country will usually _____.

As a U.S. farmer who receives a subsidy, you're guaranteed a certain price for your output regardless of the market price.

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.

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.

In _____ cultures, personal and work relationships tend to be compartmentalized.

According to the independent organization Transparency International, _____ suffers less business corruption than any other country.

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

The World Bank annually loans approximately $70 billion to poor and developing nations, which can use the money for health, nutrition, and education.

The largest factors in a country's balance of payments consist of revenues from tourism and welfare benefits paid to citizens and immigrants.

Under a(n) _____ between a U.S.based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model.

Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy

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

Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S. company's products, using your name and processes and perhaps your intellectual property.