Deck 3: Global Business

Question 1

The ability to produce a specific product more efficiently than any other nation is called comparative advantage.

Answer 1

False

Question 2

The balance of trade is the total value of a ountry's exports minus the total value of its imports over some period of time.

Answer 2

True

Question 3

An argument for trade restriction is that it protects national security.

Answer 3

True

Question 4

The General Agreement on Tariffs and Trade is an international organization whose goal is to reduce or eliminate tariffs and other barriers to world trade.

Question 5

A type of trade restriction that limits the amount of a particular good that may be imported into a country during a given period of time is

A) a tariff.
B) an import quota.
C) an embargo.
D) foreign-exchange control.
E) currency devaluation.

Question 6

A firm that operates on a worldwide scale is called

A) a multinational enterprise.
B) a multilateral development.
C) the Export-Import Bank of the United States.
D) the International Monetary Fund.
E) a strategic alliance.

Question 7

Which of the following arranges the sale of products to foreign intermediaries for a commission or fee?

A) Export-import merchant
B) Export-import agent
C) Sales office or branches
D) Joint venture
E) Franchisor

Question 8

The balance of payments is the total value of a country's exports minus the total value of its imports.

Question 9

Exporting is purchasing raw materials or products in other nations and bringing them into one's own country.

Question 10

An argument against trade restrictions is that they limit consumers' choices.

Question 11

Licensing is a contractual agreement in which one firm permits another to produce and market its product and to use its brand name in return for a royalty or other compensation.

Question 12

Which of the following extends and guarantees credit to overseas buyers of American goods and services, guarantees short-term financing for exports, and discounts negotiable instruments that arise from export transactions?

A) Ex-Im Bank
B) International Monetary Fund
C) Multilateral development banks
D) Bank of Washington, D.C.
E) National Trade Data Bank

Question 13

An argument against trade restriction is

A) to retaliate for another nation's trade restrictions.
B) to protect new or weak industries.
C) to protect national security.
D) misallocation of international resources.
E) to protect the health of citizens.

Question 14

An international bank that makes short-term loans to countries experiencing balance-of-payment deficits is the

A) Ex-Im Bank.
B) International Monetary Fund.
C) Export-Import Bank of the United States.
D) multilateral development bank.
E) World Bank.

Question 15

A partnership with a foreign country that can provide immediate market knowledge and access, reduced risk, and control over product attributes is a(n)

A) multinational enterprise.
B) economic community.
C) joint venture.
D) syndicate.
E) countertrade.

Question 16

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Mack Trucks __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 17

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Bic Pens __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 18

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Grey Goose Vodka __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 19

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Nokia __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 20

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Nestlé __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 21

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Nintendo __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 22

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Yahoo! __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 23

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Adidas __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 24

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Heineken __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 25

Match the Brand to the Country
If the following brands or product carried a passport, in what country would it be issued?

-Dr. Martens __________

A) Sweden
B) France
C) United States
D) Finland
E) Switzerland
F) Japan
G) Germany
H) Netherlands
I) United Kingdom

Question 26

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In Japan, loudly slurping your soup is considered to be

A) rude and obnoxious.
B) a sign that you like the soup.
C) okay at home but not in public.
D) something only foreigners do.

Question 27

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In Korea, business leaders tend to

A) encourage strong commitment to teamwork and cooperation.
B) encourage competition among subordinates.
C) discourage subordinates from reporting directly, preferring information to come through well-de-fined channels.
D) encourage close relationships with their subordinates.

Question 28

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In Latin America, managers

A) are most likely to hire members of their own families.
B) consider hiring members of their own families to be inappropriate.
C) stress the importance of hiring members of minority groups.
D) usually hire more people than are actually needed to do a job.

Question 29

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In Latin America, businesspeople

A) consider it impolite to make eye contact while talking to one another.
B) always wait until the other person is finished speaking before starting to speak.
C) touch each other more than North Americans do under similar circumstances.
D) avoid touching one another as it is considered an invasion of privacy.

Question 30

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In Thailand,

A) it is common to see men walking along holding hands.
B) it is common to see a man and a woman holding hands in public.
C) it is rude for men and women to walk together.
D) men and women traditionally kiss each other upon meeting in the street.

Question 31

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-When eating in India, it is appropriate to

A) take food with your right hand and eat with your left.
B) take food with your left hand and eat with your right.
C) take food and eat it with your left hand.
D) take food and eat it with your right hand.

Question 32

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-Pointing your toes at someone in Thailand is

A) a symbol of respect, much like the Japanese bow.
B) considered rude even if it is done by accident.
C) an invitation to dance.
D) the standard public greeting.

Question 33

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-American managers tend to base the performance appraisals of their subordinates on performance, while in Iran, managers are more likely to base their performance appraisals on

A) religion.
B) seniority.
C) friendship.
D) ability.

Question 34

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In China, the status of every business negotiation is

A) reported daily in the press.
B) private, and details are not discussed publicly.
C) subjected to scrutiny by a public tribunal on a regular basis.
D) directed by the elders of every commune.

Question 35

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-When rewarding a Hispanic worker for a job well done, it is best not to

A) praise him or her publicly.
B) say "thank you."
C) offer a raise.
D) offer a promotion.

Question 36

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In some South American countries, it is considered normal and acceptable to show up for a social ap-pointment

A) 10 to 15 minutes early.
B) 10 to 15 minutes late.
C) 15 minutes to an hour late.
D) one to two hours late.

Question 37

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-In France, when friends talk to one another

A) they generally stand about three feet apart.
B) it is typical to shout.
C) they stand closer to one another than Americans do.
D) it is always with a third party present.

Question 38

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-The doors in German offices and homes are generally kept

A) wide open to symbolize an acceptance and welcome of friends and strangers.
B) slightly ajar to suggest that people should knock before entering.
C) half-opened suggesting that some people are welcome and others are not.
D) tightly shut to preserve privacy and personal space.

Question 39

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-If you order "bubble and squeak" in a London pub, you will get

A) two goldfish fried in olive oil.
B) a very cold beer in a chilled glass, rather than the usual warm beer.
C) Alka Seltzer and a glass of water.
D) chopped cabbage and mashed potatoes fried together.

Question 40

Background
Few, if any, traditions and values are universally held. Many business dealings have succeeded or failed because of a manager's awareness or lack of understanding of the traditions and values of his or her foreign counterparts. With the world business community so closely intertwined and interdependent, it is critical that managers today become increasingly aware of the differences that exist.
How culturally aware are you? Try the questions below.

-When a stranger in India wants to know what you do for a living and how much you earn, he will

A) ask your guide.
B) invite you to his home and, after getting to know you, will ask.
C) come over and ask you directly, without introduction.
D) respect your privacy above all.