Question 1

________ is the use of government regulations to limit the import of goods and services.

Accepted Answer

A)   Trade protectionism
B)   Fiscal policy
C)   Countertrade policy
D)   Monetary policyE) None of the above
F) A) and B)

Question 2

The appeal of global marketing strategies is that they all involve the same amount of risk.

Accepted Answer

A) True 
 B)False

Question 3

While studying abroad, Joe found that his U.S. dollars did not stretch as far as he had hoped. Every time he exchanged U.S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following sociocultural forces can have a significant impact on global business operations?

Accepted Answer

A)   Religion
B)   Universal sales standards
C)   Single-phase marketing
D)   Global marketingE) B) and D)
F) A) and D)

Question 7

Under mercantilism, the basic economic idea was to achieve a favorable balance of trade.

Accepted Answer

A) True 
 B)False

Question 8

Global financial markets operate under a system of ________, where the supply and demand for various currencies will determine their value at any moment in time.

Accepted Answer

A)   living rates
B)   foreign good rates
C)   floating exchange rates
D)   live trading ratesE) B) and C)
F) A) and B)

Question 9

Candace is a flight attendant for a large, international airline. While in China, Candace often finds look-alikes in famous designer brands of watches, handbags, clothing, and golf clubs. In fact, she'll do her Christmas shopping there and will even buy good-quality items for auctioning at her son's preschool events back in the U.S. Candace's actions demonstrate

Accepted Answer

A)   a continual problem with product piracy in China.
B)   how expensive it is to trade with China. People who travel there are really the only ones who can benefit from China trade.
C)   the low level of economic development in China, and the fact that only tourists can afford to purchase name-brand goods in that nation.
D)   the World Trade Organization's encouragement of China to increase its production of counterfeit goods because there is a high demand for these globally.E) All of the above
F) None of the above

Question 10

Many business experts contend that ________ will likely be the growth market of the future.

Accepted Answer

A)   Asia
B)   Africa
C)   South America
D)   the Middle EastE) B) and D)
F) A) and D)

Question 11

A favorable balance of trade occurs when the value of a country's imports exceeds the value of its exports.

Accepted Answer

A) True 
 B)False

Question 12

Erin, an American citizen, says that her laptop was made in Japan. Erin purchased a(n)

Accepted Answer

A)   imported item.
B)   exported item.
C)   protected good.
D)   generic good.E) B) and C)
F) A) and C)

Question 13

A(n)  ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Accepted Answer

A)   trade cartel
B)   multinational corporation
C)   host company
D)   import trading companyE) None of the above
F) A) and B)

Question 14

Belgium, Hungary, Sweden, and Germany are all members of the EU. Which of the following statements is an accurate description of trade between these nations?

Accepted Answer

A)   Belgium and Germany are permitted to engage in free trade due to their proximity to each other, however, Sweden only has free trade with Finland, and Hungary only has free trade with Switzerland, Austria, and Croatia.
B)   The EU has abolished customs duties at internal borders for these and other member nations and put in place a uniform system for taxing imports. Internal border controls subsequently disappeared.
C)   Customs officers that collect tariffs are now found at the internal borders of all EU member nations.
D)   Belgium, Hungary, Sweden, and Germany are four nations strongly considering abandoning the EU common market. The global trading bloc has proved inefficient in these nations' attracting global business.E) None of the above
F) B) and C)

Question 15

Today, over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Accepted Answer

A) True 
 B)False

Question 16

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

Accepted Answer

A)   They may wish to contract manufacture with each other.
B)   They will save time to market if they pool their technological know-how.
C)   These arrangements are always less risky than strategic alliances.
D)   These arrangements avoid the temptation to tap into marketing and management expertise of the parent companies.E) A) and C)
F) B) and D)

Question 17

If a nation's currency is weak, people may have to fall back on

Accepted Answer

A)   exporting.
B)   bartering.
C)   importing.
D)   factoring.E) A) and B)
F) A) and C)

Question 18

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 can be an even more serious disruption to the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 19

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Accepted Answer

A) True 
 B)False

Question 20

Often, the strategy of common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

Many business experts contend that ________ will likely be the growth market of the future.

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 can be an even more serious disruption to the U.S. economy.

Correct Answer
verified

Which of the following sociocultural forces can have a significant impact on global business operations?

Correct Answer
verified

Often, the strategy of common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct Answer
verified

If a nation's currency is weak, people may have to fall back on

Correct Answer
verified

________ is the use of government regulations to limit the import of goods and services.

Correct Answer
verified

Erin, an American citizen, says that her laptop was made in Japan. Erin purchased a(n)

Correct Answer
verified

The appeal of global marketing strategies is that they all involve the same amount of risk.

Correct Answer
verified

Global financial markets operate under a system of ________, where the supply and demand for various currencies will determine their value at any moment in time.

Correct Answer
verified

Correct Answer
verified

Belgium, Hungary, Sweden, and Germany are all members of the EU. Which of the following statements is an accurate description of trade between these nations?

Correct Answer
verified

Today, over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Correct Answer
verified

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct Answer
verified

Under mercantilism, the basic economic idea was to achieve a favorable balance of trade.

Correct Answer
verified

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

Correct Answer
verified

While studying abroad, Joe found that his U.S. dollars did not stretch as far as he had hoped. Every time he exchanged U.S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro.

Correct Answer
verified

A favorable balance of trade occurs when the value of a country's imports exceeds the value of its exports.

Correct Answer
verified

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

Correct Answer
verified

A(n) ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Correct Answer
verified

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Correct Answer
verified

Exam 3: Doing Business in Global Markets

Many business experts contend that ________ will likely be the growth market of the future.

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 can be an even more serious disruption to the U.S. economy.

Correct AnswerverifiedShow Answer

Which of the following sociocultural forces can have a significant impact on global business operations?

Correct AnswerverifiedShow Answer

Often, the strategy of common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct AnswerverifiedShow Answer

If a nation's currency is weak, people may have to fall back on

Correct AnswerverifiedShow Answer

________ is the use of government regulations to limit the import of goods and services.

Correct AnswerverifiedShow Answer

Erin, an American citizen, says that her laptop was made in Japan. Erin purchased a(n)

Correct AnswerverifiedShow Answer

The appeal of global marketing strategies is that they all involve the same amount of risk.

Correct AnswerverifiedShow Answer

Global financial markets operate under a system of ________, where the supply and demand for various currencies will determine their value at any moment in time.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Belgium, Hungary, Sweden, and Germany are all members of the EU. Which of the following statements is an accurate description of trade between these nations?

Correct AnswerverifiedShow Answer

Today, over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Correct AnswerverifiedShow Answer

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct AnswerverifiedShow Answer

Under mercantilism, the basic economic idea was to achieve a favorable balance of trade.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

While studying abroad, Joe found that his U.S. dollars did not stretch as far as he had hoped. Every time he exchanged U.S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro.

Correct AnswerverifiedShow Answer

A favorable balance of trade occurs when the value of a country's imports exceeds the value of its exports.

Correct AnswerverifiedShow Answer

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

Correct AnswerverifiedShow Answer

A(n) ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Correct AnswerverifiedShow Answer

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Correct AnswerverifiedShow Answer

Correct Answer
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