Question 1

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Accepted Answer

A)   export agency.
B)   multinational corporation.
C)   strategic alliance.
D)   joint venture.
E)   trading company.

Question 2

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Accepted Answer

A)   It focuses on large businesses.
B)   It is a local business solutions unit.
C)   It offers U.S. firms a unique global network.
D)   It offers U.S. firms practical knowledge of national markets and industries.
E)   It doesn't use information technology.

Question 3

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of

Accepted Answer

A)   supply and demand.
B)   absolute advantage.
C)   a monopoly.
D)   exchange controls.
E)   comparative advantage.

Question 4

The World Trade Organization agreements were rejected by most of the world's trading nations.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are examples of multinational strategy EXCEPT

Accepted Answer

A)   in Vietnam, McDonald's offered its traditional menu items as well as McPork sandwiches targeted toward Vietnam consumers.
B)   soap and detergent manufacturers have adapted their products to local water conditions, washing equipment, and washing habits.
C)   Colgate-Palmolive Co. has developed an inexpensive, plastic, hand-powered washing machine for households without electricity.
D)   American clothing companies use social media sites to connect with global customers.
E)   companies have modified their advertising to adapt to language and cultural differences.

Question 6

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

Accepted Answer

A) True 
 B)False

Question 7

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Accepted Answer

A)   the United States.
B)   Cuba.
C)   Iran.
D)   Syria.
E)   North Korea.

Question 8

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Accepted Answer

A)   space
B)   time
C)   language
D)   ethics
E)   respect

Question 9

A country that imposes an embargo in response to some political event is attempting to

Accepted Answer

A)   restrict trade with other nations.
B)   increase trade with other nations.
C)   encourage dumping into the country.
D)   increase the amount of currency that can be brought into the country.
E)   increase the potential for countries to engage in dumping.

Question 10

What type of company benefits the most from licensing?

Accepted Answer

A)   a large manufacturer that wants to launch its own brand internationally
B)   a small manufacturer that wants to launch a well-known brand internationally
C)   a small manufacturer that wants to launch its own brand internationally
D)   a large manufacturer that wants to transform a less-known brand into a well-known brand internationally
E)   a small manufacturer that wants to launch a well-known brand locally

Question 11

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

Accepted Answer

A)   absolute advantage.
B)   strategic alliance.
C)   infrastructure.
D)   exchange rate.
E)   exchange controls.

Question 12

What is true regarding trading companies?

Accepted Answer

A)   They buy and sell goods in only one country.
B)   They handle all activities required to move products from one country to another.
C)   They rarely offer warehousing facilities.
D)   They are very different from export agents.
E)   They refrain from handling consulting activities.

Question 13

Which situation encourages the sale of domestic goods and tourism?

Accepted Answer

A)   inflation
B)   dumping
C)   outsourcing
D)   devaluation
E)   tariffs

Question 14

Explain why a company may opt for a joint venture or a strategic alliance.

Accepted Answer

When a company lacks sufficient resource...

Question 15

What is true of the World Bank?

Accepted Answer

A)   It funds the member nations of the NAFTA and EU.
B)   It provides aid to industrialized nations in times of financial crisis.
C)   It acts as a global police force.
D)   It finances construction projects in underdeveloped and developing countries.
E)   It helps developed nations obtain money to start businesses.

Question 16

Why has outsourcing become a controversial practice in the United States?

Accepted Answer

A)   Outsourcing takes away jobs that could be accomplished by workers in the United States.
B)   Outsourcing takes away a company's ability to develop a comparative advantage.
C)   Outsourcing has made U.S.-based products significantly more expensive.
D)   Outsourcing increases the cost of labor and supplies needed to get the job done.
E)   The outsourced products end up having sub-standard quality because their producers lack expertise.

Question 17

Which statement about less-developed countries (LDCs)  is true?

Accepted Answer

A)   Almost all countries in Europe are LDCs.
B)   In LDCs, consumers tend to purchase more nonessential products.
C)   LDCs are characterized by solid infrastructures.
D)   LDCs represent a potentially huge and profitable market for many businesses.
E)   LDCs are characterized by high per-capita income.

Question 18

Differences in spoken and written language represent a(n)  ________ barrier to international trade.

Accepted Answer

A)   technological
B)   political
C)   legal
D)   cultural
E)   economic

Question 19

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

Accepted Answer

A) True 
 B)False

Question 20

Describe the types of tariffs that are imposed on products and the reasons for their use.

Accepted Answer

Tariffs and other trade restrictions are...

Exam 3: Business in a Borderless World

What is true regarding trading companies?

Correct Answer
verified

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Correct Answer
verified

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Correct Answer
verified

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Correct Answer
verified

Which situation encourages the sale of domestic goods and tourism?

Correct Answer
verified

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Correct Answer
verified

Explain why a company may opt for a joint venture or a strategic alliance.

Correct Answer
verified
When a company lacks sufficient resource...
View Answer

What type of company benefits the most from licensing?

Correct Answer
verified

The World Trade Organization agreements were rejected by most of the world's trading nations.

Correct Answer
verified

A country that imposes an embargo in response to some political event is attempting to

Correct Answer
verified

Describe the types of tariffs that are imposed on products and the reasons for their use.

Correct Answer
verified
Tariffs and other trade restrictions are...
View Answer

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

Correct Answer
verified

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Correct Answer
verified

All of the following are examples of multinational strategy EXCEPT

Correct Answer
verified

What is true of the World Bank?

Correct Answer
verified

Which statement about less-developed countries (LDCs) is true?

Correct Answer
verified

Why has outsourcing become a controversial practice in the United States?

Correct Answer
verified

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

Correct Answer
verified

Correct Answer
verified

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

Correct Answer
verified

Exam 3: Business in a Borderless World

What is true regarding trading companies?

Correct AnswerverifiedShow Answer

All of the following nations have been subject to economic sanctions for political reasons in recent years EXCEPT

Correct AnswerverifiedShow Answer

Which statement is true of the Commercial Service of the U.S. Department of Commerce?

Correct AnswerverifiedShow Answer

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Correct AnswerverifiedShow Answer

Which situation encourages the sale of domestic goods and tourism?

Correct AnswerverifiedShow Answer

Suppose a company headquartered in Europe operates over 500 factories around the world but does not have any significant ties to any nation or region in which it operates. This company would be an example of a(n)

Correct AnswerverifiedShow Answer

Explain why a company may opt for a joint venture or a strategic alliance.

Correct AnswerverifiedWhen a company lacks sufficient resource...View AnswerShow Answer

What type of company benefits the most from licensing?

Correct AnswerverifiedShow Answer

The World Trade Organization agreements were rejected by most of the world's trading nations.

Correct AnswerverifiedShow Answer

A country that imposes an embargo in response to some political event is attempting to

Correct AnswerverifiedShow Answer

Describe the types of tariffs that are imposed on products and the reasons for their use.

Correct AnswerverifiedTariffs and other trade restrictions are...View AnswerShow Answer

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

Correct AnswerverifiedShow Answer

Americans value promptness in business meetings, while it is common in Mexico and Spain for a meeting to start thirty minutes late. This exemplifies how the perceptions of ________ differ among nations.

Correct AnswerverifiedShow Answer

All of the following are examples of multinational strategy EXCEPT

Correct AnswerverifiedShow Answer

What is true of the World Bank?

Correct AnswerverifiedShow Answer

Which statement about less-developed countries (LDCs) is true?

Correct AnswerverifiedShow Answer

Why has outsourcing become a controversial practice in the United States?

Correct AnswerverifiedShow Answer

Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When a company lacks sufficient resource...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Tariffs and other trade restrictions are...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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