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Exam 3: The World Marketplace: Business Without Borders

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Question 61

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CuberTech, an American electronics company, set up its production facilities in Chuaga, an Asian country, because the workers in Chuaga work for about one-third the pay of American workers. This substantially lowered CuberTech's cost of production. This scenario is an example of _____.

A) direct investment
B) a joint venture
C) foreign outsourcing
D) foreign franchising

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Question 62

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Quotas are taxes levied against imports.

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Question 63

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Despite their huge populations, China and India represent a much smaller opportunity in terms of size and economic growth.

Chechinko, an African country, and Herito, an Asian country, use the same amount of resources to produce alcohol. Despite this, Chechinko is able to manufacture a higher quantity of alcohol than Herito. In this context, which of the following statements is definitely true of Chechinko?

Which of the following countries most likely has a comparative advantage?

A firm that expands through foreign franchising is called a franchisee.

_____ range from simple barter to a complex web of exchanges that end up meeting the needs of multiple parties.

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in Greitch, a South Asian country, and sets up a production facility despite the high costs involved. In this scenario, Boson Corp. is most likely involved in _____.

Luchen Modo, a software development firm in Asia, launched a new software for smartphones that allowed users to remotely control certain functions and features of their vehicles, such as ignition, windshields, and headlights. The success of this technology prompted other companies across the world to produce similar software. In this scenario, which of the following is most likely to have influenced other companies to produce similar software?

In the context of emerging economies, which of the following statements is true of the BRIC countries?

Which of the following is a function of the International Monetary Fund (IMF) ?

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports. In this scenario, the American government imposed a(n) _____.

In the context of economic considerations when entering a foreign market, which of the following is an example of the energy infrastructure in a country?

Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.

Elision Inc., an American software development company, outsourced its support operations to Luzenza, an Asian nation, because it found that Luzenza has a large cohort of English-speaking college graduates who are ready to work for one-fourth the pay of comparable American workers. Which of the following is most likely to have influenced Elision Inc.'s decision to outsource its support operations to Luzenza?

In the context of the strategies for reaching global markets, importing is a strategy to seek foreign customers.

Which of the following companies is engaged in importing?

Revia and Bramin are European nations that signed a trade agreement with each other. The agreement stated that Revia would supply sugarcane to Bramin and Bramin would supply cloves to Revia. The agreement would benefit both nations and would even out some of the resource imbalances in the two nations. In this scenario, which of the following is most likely to have influenced the trade agreement between Revia and Bramin?

Which of the following statements is true of international trade?

The balance of trade plays a central role in determining the balance of payments.