Question 1

The World Bank was founded to ________.

Accepted Answer

A)  help countries form their economic policies 
B)  investigate financial allegations 
C)  regulate exchange rates 
D)  provide short-term loans to firms 
E)  finance reconstruction after World War II 
A)  help countries form their economic policies 
B)  investigate financial allegations 
C)  regulate exchange rates 
D)  provide short-term loans to firms 
E)  finance reconstruction after World War II

Question 2

Which of the following is a principle that governs the world trade organization's work?

Accepted Answer

A)  giving preference to trading partners who provide maximum business 
B)  protecting domestic industries by offering financial assistance 
C)  making trade policies more predictable and less arbitrary 
D)  establishing dumping procedures to prevent pollution in developed countries 
E)  implementing protectionist ideologies to establish fair trade between nations 
A)  giving preference to trading partners who provide maximum business 
B)  protecting domestic industries by offering financial assistance 
C)  making trade policies more predictable and less arbitrary 
D)  establishing dumping procedures to prevent pollution in developed countries 
E)  implementing protectionist ideologies to establish fair trade between nations

Question 3

Which of the following is an example of a trading bloc?

Accepted Answer

A)  International Monetary Fund 
B)  United Nations 
C)  European Union 
D)  World Bank 
E)  World Trade Organization 
A)  International Monetary Fund 
B)  United Nations 
C)  European Union 
D)  World Bank 
E)  World Trade Organization

Question 4

The classic theory of comparative advantage suggests that each country should ________.

Accepted Answer

A)  attempt to maintain a trade surplus by exporting more than what it imports 
B)  attempt to maintain a trade deficit by importing more than what it exports 
C)  produce all goods and services it requires for domestic consumption 
D)  specialize in those areas where it can produce more efficiently than other countries 
E)  produce a wide range of products to maintain an attractive international portfolio 
A)  attempt to maintain a trade surplus by exporting more than what it imports 
B)  attempt to maintain a trade deficit by importing more than what it exports 
C)  produce all goods and services it requires for domestic consumption 
D)  specialize in those areas where it can produce more efficiently than other countries 
E)  produce a wide range of products to maintain an attractive international portfolio

Question 5

Which of the following is an objective of protectionism?

Accepted Answer

A)  reducing the purchasing power of individuals 
B)  guard specific industries in a nation 
C)  enhancing trade between nations 
D)  increasing foreign direct investment 
E)  helping developing nations engage in global trade 
A)  reducing the purchasing power of individuals 
B)  guard specific industries in a nation 
C)  enhancing trade between nations 
D)  increasing foreign direct investment 
E)  helping developing nations engage in global trade

Question 6

Multinational corporations are companies that ________.

Accepted Answer

A)  export to multiple countries from a central location 
B)  have formed strategic alliances with companies across the world 
C)  have formed operational alliances with companies across the world 
D)  procure supplies from multiple countries to improve their production 
E)  establish a physical presence in multiple countries through FDI 
A)  export to multiple countries from a central location 
B)  have formed strategic alliances with companies across the world 
C)  have formed operational alliances with companies across the world 
D)  procure supplies from multiple countries to improve their production 
E)  establish a physical presence in multiple countries through FDI

Question 7

Choose a country that follows strong protectionist policies.Construct a document,to be presented in an international conference,that supports the country's stand in foreign trade.

Accepted Answer

The students should construct a document

Question 8

Providing short-term loans to countries that are unable to meet their financial obligations is a primary function of the International Monetary Fund.

Accepted Answer

A) True 
 B)False

Question 9

Abarma Chemicals produces various types of drugs.The company has a centralized production facility in China.It manufactures standardized products and ships them to various countries from China.The company's procurement,operations,and customer service are controlled centrally from China.Abarma Chemicals is using a ________ strategy.

Accepted Answer

A)  franchising 
B)  global 
C)  distributed 
D)  transnational 
E)  multidomestic 
A)  franchising 
B)  global 
C)  distributed 
D)  transnational 
E)  multidomestic

Question 10

In a(n)________ strategy,managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

Accepted Answer

A)  multidomestic 
B)  franchising 
C)  global 
D)  distributed 
E)  transnational 
A)  multidomestic 
B)  franchising 
C)  global 
D)  distributed 
E)  transnational

Question 11

Comparative advantage theory states that countries should produce and sell to other countries those things it can produce most efficiently.

Accepted Answer

A) True 
 B)False

Question 12

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.

Accepted Answer

A)  Joint venture 
B)  Exporting 
C)  Franchising 
D)  Licensing 
E)  Strategic alliance 
A)  Joint venture 
B)  Exporting 
C)  Franchising 
D)  Licensing 
E)  Strategic alliance

Question 13

What type of governmental intervention,according to you,is the most severe? Categorize different types of governmental inventions based on their rigorousness.

Accepted Answer

Embargoes and sanctions appear to be the

Question 14

International travel would be more expensive for U.S.residents if the dollar is strong.

Accepted Answer

A) True 
 B)False

Question 15

The number of units of one currency that must be exchanged for a unit of the second currency is known as the exchange rate between the currencies.

Accepted Answer

A) True 
 B)False

Question 16

The World Bank is an agency of the U.S.federal government.

Accepted Answer

A) True 
 B)False

Question 17

Trade that takes place without interferences is known as free trade.

Accepted Answer

A) True 
 B)False

Question 18

Exporting is the least risky form of international business activity.

Accepted Answer

A) True 
 B)False

Question 19

In some countries,payoffs to government officials are so common that they are considered by business people as a standard operating practice.However,this practice is illegal in the U.S.under the Federal Corrupt Practices Act (FCPA).Do you feel that the FCPA tries to impose U.S.values on other cultures? Why or why not?

Accepted Answer

Some students may argue that the FCPA is

Question 20

When the U.S.dollar is strong,U.S.exports will likely ________.

Accepted Answer

A)  become more competitive in foreign markets 
B)  cost more in other countries 
C)  be limited by the U.S. government 
D)  face embargoes in developing nations 
E)  be restricted by governments across the world 
A)  become more competitive in foreign markets 
B)  cost more in other countries 
C)  be limited by the U.S. government 
D)  face embargoes in developing nations 
E)  be restricted by governments across the world

The World Bank was founded to ________.

Which of the following is a principle that governs the world trade organization's work?

Which of the following is an example of a trading bloc?

The classic theory of comparative advantage suggests that each country should ________.

Which of the following is an objective of protectionism?

Multinational corporations are companies that ________.

Choose a country that follows strong protectionist policies.Construct a document,to be presented in an international conference,that supports the country's stand in foreign trade.

Providing short-term loans to countries that are unable to meet their financial obligations is a primary function of the International Monetary Fund.

In a(n)________ strategy,managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

Comparative advantage theory states that countries should produce and sell to other countries those things it can produce most efficiently.

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.

What type of governmental intervention,according to you,is the most severe? Categorize different types of governmental inventions based on their rigorousness.

International travel would be more expensive for U.S.residents if the dollar is strong.

The number of units of one currency that must be exchanged for a unit of the second currency is known as the exchange rate between the currencies.

The World Bank is an agency of the U.S.federal government.

Trade that takes place without interferences is known as free trade.

Exporting is the least risky form of international business activity.

When the U.S.dollar is strong,U.S.exports will likely ________.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 3: The Global Marketplace

The World Bank was founded to ________.

Which of the following is a principle that governs the world trade organization's work?

Which of the following is an example of a trading bloc?

The classic theory of comparative advantage suggests that each country should ________.

Which of the following is an objective of protectionism?

Multinational corporations are companies that ________.

Choose a country that follows strong protectionist policies.Construct a document,to be presented in an international conference,that supports the country's stand in foreign trade.

Providing short-term loans to countries that are unable to meet their financial obligations is a primary function of the International Monetary Fund.

In a(n)________ strategy,managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

Comparative advantage theory states that countries should produce and sell to other countries those things it can produce most efficiently.

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.

What type of governmental intervention,according to you,is the most severe? Categorize different types of governmental inventions based on their rigorousness.

International travel would be more expensive for U.S.residents if the dollar is strong.

The number of units of one currency that must be exchanged for a unit of the second currency is known as the exchange rate between the currencies.

The World Bank is an agency of the U.S.federal government.

Trade that takes place without interferences is known as free trade.

Exporting is the least risky form of international business activity.

When the U.S.dollar is strong,U.S.exports will likely ________.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters