Question 1

Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.

Accepted Answer

A) True 
 B)False

Question 2

A disadvantage of licensing is:

Accepted Answer

A)   it's very costly for the licensor.
B)   the licensee can decide to end the contract at a moment's notice.
C)   your company's image is never permitted to be associated with the product,even though you are the developer.
D)   the licensee may decide to use the expertise you have developed,break the agreement,and begin producing the product on his/her own.E) C) and D)
F) All of the above

Question 3

A disadvantage of creating a foreign subsidiary is the loss of control over technology and expertise used in the production of the product.

Accepted Answer

A) True 
 B)False

Question 4

In the past few decades,U.S.manufacturers shifted focus from manufacturing and assembling products,to the design and architecture of products.Now,a new shift: the offshore outsourcing of design and architecture is proving to be an even more serious disruption to the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 5

A free trade agreement is likely to result in:

Accepted Answer

A)   an increase in imported goods and services.
B)   an absolute advantage.
C)   less competition.
D)   productivity increases in all product categories,for all participating nations.E) A) and B)
F) B) and C)

Question 6

Idle Time Gaming,Inc.needed silicon wafers that it knew could be massed produced efficiently by Silicon City,Inc. ,a start-up firm in India.The Indian company needed MSG (metallurgical grade silicon) in order to make the wafers which it knew it could get from a Chinese firm.The Chinese firm (mostly owned by the Chinese government) agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time.This beneficial exchange is described as:

Accepted Answer

A)   Beneficial contracting.
B)   Contract manufacturing.
C)   Third Party purchasing.
D)   Countertrading.E) All of the above
F) A) and B)

Question 7

A major concern voiced by U.S.critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

Accepted Answer

A)   higher prices for consumer goods.
B)   loss of jobs in the U.S.economy.
C)   national security problems.
D)   increased illegal immigration from Mexico.E) B) and C)
F) All of the above

Question 8

Boasting a $1.6 billion Ketchup brand,the H.J.Heinz Company is flying high with a 44% increase in its sales of Indonesian based ABC,a soy sauce company that it owns.ABC is a _____________ of Heinz.

Accepted Answer

A)   licensed venture
B)   joint venture
C)   export trading company
D)   foreign subsidiaryE) A) and C)
F) B) and C)

Question 9

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports.Bogusland has:

Accepted Answer

A)   an unfavorable balance of trade.
B)   a trade surplus.
C)   a trade deficit.
D)   a low balance of trade.E) A) and D)
F) C) and D)

Question 10

Firms with a physical presence in several different nations are considered multinational corporations.

Accepted Answer

A) True 
 B)False

Question 11

Some firms will practice "dumping" in order to gain a foothold in a new market.

Accepted Answer

A) True 
 B)False

Question 12

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Accepted Answer

A) True 
 B)False

Question 13

Why does it make sense to trade with other nations?

Accepted Answer

A)   After producing all the product and service its people want and need,a nation can sell the excess products to the world.
B)   Some nations have lots of natural resources and technological know-how.They have an ethical obligation to offer the rest to other nations.
C)   Other nations need foreign currency.
D)   A nation will produce what it can produce most efficiently and effectively and buy from other nations what they can produce most efficiently and effectively.E) None of the above
F) B) and D)

Question 14

According to the theory of mercantilism,a country should develop policies that encourage a favorable balance of trade.

Accepted Answer

A) True 
 B)False

Question 15

The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan.Ozark Bike Company sees itself in a favorable position because the Yen is gaining strength compared to the U.S.dollar making it cheaper for Japanese customers to buy U.S.products.

Accepted Answer

A) True 
 B)False

Question 16

Any corporation that exports at least 50% of its total output can be classified as a multinational corporation.

Accepted Answer

A) True 
 B)False

Question 17

Global trade includes the exchange of art,sports,and cultural events.

Accepted Answer

A) True 
 B)False

Question 18

According to current U.S.laws,American firms are prohibited from participating in joint ventures with foreign firms.

Accepted Answer

A) True 
 B)False

Question 19

Under the floating exchange rate system,the value of a country's currency is determined by:

Accepted Answer

A)   the monetary authorities of that country.
B)   the United Nations Committee on Floating Currencies.
C)   the currency's supply and demand in the global market.
D)   countertrading.E) None of the above
F) A) and D)

Question 20

An important principle for firms desiring to export is:

Accepted Answer

A)   sell to countries with high standards of living.
B)   keep in mind that American methods are probably always best.
C)   find a need in the global market and fill it.
D)   if your product sells well in the U.S.it will sell well globally.E) None of the above
F) B) and C)

Exam 3: Doing Business in Global Markets

Some firms will practice "dumping" in order to gain a foothold in a new market.

Correct Answer
verified

In the past few decades,U.S.manufacturers shifted focus from manufacturing and assembling products,to the design and architecture of products.Now,a new shift: the offshore outsourcing of design and architecture is proving to be an even more serious disruption to the U.S.economy.

Correct Answer
verified

Firms with a physical presence in several different nations are considered multinational corporations.

Correct Answer
verified

A disadvantage of licensing is:

Correct Answer
verified

Any corporation that exports at least 50% of its total output can be classified as a multinational corporation.

Correct Answer
verified

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Correct Answer
verified

An important principle for firms desiring to export is:

Correct Answer
verified

A disadvantage of creating a foreign subsidiary is the loss of control over technology and expertise used in the production of the product.

Correct Answer
verified

Under the floating exchange rate system,the value of a country's currency is determined by:

Correct Answer
verified

According to the theory of mercantilism,a country should develop policies that encourage a favorable balance of trade.

Correct Answer
verified

Global trade includes the exchange of art,sports,and cultural events.

Correct Answer
verified

Boasting a $1.6 billion Ketchup brand,the H.J.Heinz Company is flying high with a 44% increase in its sales of Indonesian based ABC,a soy sauce company that it owns.ABC is a _____________ of Heinz.

Correct Answer
verified

Why does it make sense to trade with other nations?

Correct Answer
verified

A free trade agreement is likely to result in:

Correct Answer
verified

A major concern voiced by U.S.critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

Correct Answer
verified

According to current U.S.laws,American firms are prohibited from participating in joint ventures with foreign firms.

Correct Answer
verified

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports.Bogusland has:

Correct Answer
verified

Correct Answer
verified

Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.

Correct Answer
verified

Correct Answer
verified

Exam 3: Doing Business in Global Markets

Some firms will practice "dumping" in order to gain a foothold in a new market.

Correct AnswerverifiedShow Answer

In the past few decades,U.S.manufacturers shifted focus from manufacturing and assembling products,to the design and architecture of products.Now,a new shift: the offshore outsourcing of design and architecture is proving to be an even more serious disruption to the U.S.economy.

Correct AnswerverifiedShow Answer

Firms with a physical presence in several different nations are considered multinational corporations.

Correct AnswerverifiedShow Answer

A disadvantage of licensing is:

Correct AnswerverifiedShow Answer

Any corporation that exports at least 50% of its total output can be classified as a multinational corporation.

Correct AnswerverifiedShow Answer

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Correct AnswerverifiedShow Answer

An important principle for firms desiring to export is:

Correct AnswerverifiedShow Answer

A disadvantage of creating a foreign subsidiary is the loss of control over technology and expertise used in the production of the product.

Correct AnswerverifiedShow Answer

Under the floating exchange rate system,the value of a country's currency is determined by:

Correct AnswerverifiedShow Answer

According to the theory of mercantilism,a country should develop policies that encourage a favorable balance of trade.

Correct AnswerverifiedShow Answer

Global trade includes the exchange of art,sports,and cultural events.

Correct AnswerverifiedShow Answer

Boasting a $1.6 billion Ketchup brand,the H.J.Heinz Company is flying high with a 44% increase in its sales of Indonesian based ABC,a soy sauce company that it owns.ABC is a _____________ of Heinz.

Correct AnswerverifiedShow Answer

Why does it make sense to trade with other nations?

Correct AnswerverifiedShow Answer

A free trade agreement is likely to result in:

Correct AnswerverifiedShow Answer

A major concern voiced by U.S.critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

Correct AnswerverifiedShow Answer

According to current U.S.laws,American firms are prohibited from participating in joint ventures with foreign firms.

Correct AnswerverifiedShow Answer

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports.Bogusland has:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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