Question 1

Which of the following arguments supports the idea of free trade?

Accepted Answer

A)  Dumping rules and tariffs should be stricter in developing countries. 
B)  International trade must take place without any interference. 
C)  Organizations should prefer local workers to foreign workers. 
D)  Local businesses should obtain help from governments. 
E)  Governments should subsidize exporters to promote global trade. 
A)  Dumping rules and tariffs should be stricter in developing countries. 
B)  International trade must take place without any interference. 
C)  Organizations should prefer local workers to foreign workers. 
D)  Local businesses should obtain help from governments. 
E)  Governments should subsidize exporters to promote global trade.

Question 2

Ethnocentrism is the tendency to assign a wide range of generalized attributes to an individual.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following changes in the exchange market is disadvantageous to Charles Associates?

Accepted Answer

A)  The U.S. dollar has weakened against the Renminbi. 
B)  The U.S. dollar has strengthened against the Rupee. 
C)  The U.S. dollar has strengthened against the Euro. 
D)  The Yen has become strong against U.S. dollars. 
E)  The Euro became weaker against most major currencies. 
A)  The U.S. dollar has weakened against the Renminbi. 
B)  The U.S. dollar has strengthened against the Rupee. 
C)  The U.S. dollar has strengthened against the Euro. 
D)  The Yen has become strong against U.S. dollars. 
E)  The Euro became weaker against most major currencies.

Question 4

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

Accepted Answer

The classic theory of comparative advant

Question 5

A country has a trade surplus when the ________.

Accepted Answer

A)  value of its exports exceeds the value of its imports 
B)  exchange rate of its currency with other currencies is variable 
C)  exchange rate of its currency with other currencies is fixed 
D)  value of its imports exceeds the value of its exports 
E)  total flow of money into the country equals the total flow of money out of the country 
A)  value of its exports exceeds the value of its imports 
B)  exchange rate of its currency with other currencies is variable 
C)  exchange rate of its currency with other currencies is fixed 
D)  value of its imports exceeds the value of its exports 
E)  total flow of money into the country equals the total flow of money out of the country

Question 6

Coca Foods markets packaged foods in the United States.The company recently decided to expand globally and produce in large quantities from a central location.How will this decision impact the company's unit cost of production?

Accepted Answer

International expansion involves more th

Question 7

Which of the following is a major disadvantage of customizing products to suit local markets?

Accepted Answer

A)  Customization is likely to increase the costs and operational complexity. 
B)  Customized products attract more taxes and duties. 
C)  It reduces the diversity of a company's offerings. 
D)  Customization prevents companies from obtaining subsidies. 
E)  Customers' preferences will likely be ignored when using customization. 
A)  Customization is likely to increase the costs and operational complexity. 
B)  Customized products attract more taxes and duties. 
C)  It reduces the diversity of a company's offerings. 
D)  Customization prevents companies from obtaining subsidies. 
E)  Customers' preferences will likely be ignored when using customization.

Question 8

Foreign direct investment (FDI)________.

Accepted Answer

A)  usually does not receive support from domestic governments 
B)  carries much lesser political risk 
C)  typically gives companies greater control 
D)  carries much lesser economic risk 
E)  is less complex than any other form of global entry 
A)  usually does not receive support from domestic governments 
B)  carries much lesser political risk 
C)  typically gives companies greater control 
D)  carries much lesser economic risk 
E)  is less complex than any other form of global entry

Question 9

Theocratic law is found in Iran and Pakistan and is based on ________.

Accepted Answer

A)  traditions and customs 
B)  religious principles 
C)  detailed legal codes 
D)  legal parameters 
E)  judicial interpretations 
A)  traditions and customs 
B)  religious principles 
C)  detailed legal codes 
D)  legal parameters 
E)  judicial interpretations

Question 10

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

Accepted Answer

A)  U.S has a trade surplus against Italy 
B)  Euro has depreciated in value recently 
C)  U.S. dollar has weakened in the past year 
D)  U.S has a trade deficit against Italy 
E)  balance of payment between U.S. and Europe is unfavorable 
A)  U.S has a trade surplus against Italy 
B)  Euro has depreciated in value recently 
C)  U.S. dollar has weakened in the past year 
D)  U.S has a trade deficit against Italy 
E)  balance of payment between U.S. and Europe is unfavorable

Question 11

Do you think protectionism is totally unwarranted? Explain your answer.

Accepted Answer

There are benefits also in protecting ce

Question 12

Electrobox is a firm that manufactures commercial kitchen equipment.The firm decides to enter China and bonds with a Chinese firm to form a new company named Electrokitchen.This is an example of a(n)________.

Accepted Answer

A)  transactional alliance 
B)  operational partnership 
C)  strategic alliance 
D)  joint venture 
E)  international franchise 
A)  transactional alliance 
B)  operational partnership 
C)  strategic alliance 
D)  joint venture 
E)  international franchise

Question 13

________ are long-term partnerships between two or more companies to jointly develop,produce,or sell products.

Accepted Answer

A)  Strategic alliances 
B)  Global franchises 
C)  Joint ventures 
D)  Strategic mergers 
E)  Incorporated partnerships 
A)  Strategic alliances 
B)  Global franchises 
C)  Joint ventures 
D)  Strategic mergers 
E)  Incorporated partnerships

Question 14

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

Accepted Answer

A)  balance payment 
B)  trading bloc 
C)  tariff rate 
D)  exchange rate 
E)  trade balance 
A)  balance payment 
B)  trading bloc 
C)  tariff rate 
D)  exchange rate 
E)  trade balance

Question 15

In the ________ strategy,a company uses a hybrid approach as it attempts to reap the benefits of international scale while being responsive to local market dynamics.

Accepted Answer

A)  integrated marketing 
B)  transnational 
C)  global 
D)  franchising 
E)  multidomestic 
A)  integrated marketing 
B)  transnational 
C)  global 
D)  franchising 
E)  multidomestic

Question 16

Legal systems in Great Britain and the U.S.are based on ________ law.

Accepted Answer

A)  bijuridical 
B)  theocratic 
C)  common 
D)  civil 
E)  civilian 
A)  bijuridical 
B)  theocratic 
C)  common 
D)  civil 
E)  civilian

Question 17

The U.S.restricts the import of peanuts to a maximum of 1.7 million pounds per year to protect the price that domestic producers can charge.This is an example of a(n)________.

Accepted Answer

A)  import subsidy 
B)  embargo 
C)  import quota 
D)  import tariff 
E)  restrictive import standard 
A)  import subsidy 
B)  embargo 
C)  import quota 
D)  import tariff 
E)  restrictive import standard

Question 18

France and Germany rely on a legal system known as ________,in which legal parameters are specified in detailed legal codes.

Accepted Answer

A)  theocratic law 
B)  case law 
C)  common law 
D)  precedent law 
E)  civil law 
A)  theocratic law 
B)  case law 
C)  common law 
D)  precedent law 
E)  civil law

Question 19

The World Trade Organization is a permanent forum for negotiating,implementing,and monitoring international trade procedures.

Accepted Answer

A) True 
 B)False

Question 20

________ limit the amount of particular goods that countries allow to be imported during a given year.

Accepted Answer

A)  Import subsidies 
B)  Embargoes 
C)  Import quotas 
D)  Import tariffs 
E)  Restrictive import standards 
A)  Import subsidies 
B)  Embargoes 
C)  Import quotas 
D)  Import tariffs 
E)  Restrictive import standards

Which of the following arguments supports the idea of free trade?

Ethnocentrism is the tendency to assign a wide range of generalized attributes to an individual.

Which of the following changes in the exchange market is disadvantageous to Charles Associates?

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

A country has a trade surplus when the ________.

Coca Foods markets packaged foods in the United States.The company recently decided to expand globally and produce in large quantities from a central location.How will this decision impact the company's unit cost of production?

Which of the following is a major disadvantage of customizing products to suit local markets?

Foreign direct investment (FDI)________.

Theocratic law is found in Iran and Pakistan and is based on ________.

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

Do you think protectionism is totally unwarranted? Explain your answer.

Electrobox is a firm that manufactures commercial kitchen equipment.The firm decides to enter China and bonds with a Chinese firm to form a new company named Electrokitchen.This is an example of a(n)________.

________ are long-term partnerships between two or more companies to jointly develop,produce,or sell products.

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

In the ________ strategy,a company uses a hybrid approach as it attempts to reap the benefits of international scale while being responsive to local market dynamics.

Legal systems in Great Britain and the U.S.are based on ________ law.

The U.S.restricts the import of peanuts to a maximum of 1.7 million pounds per year to protect the price that domestic producers can charge.This is an example of a(n)________.

France and Germany rely on a legal system known as ________,in which legal parameters are specified in detailed legal codes.

The World Trade Organization is a permanent forum for negotiating,implementing,and monitoring international trade procedures.

________ limit the amount of particular goods that countries allow to be imported during a given year.

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

Which of the following arguments supports the idea of free trade?

Ethnocentrism is the tendency to assign a wide range of generalized attributes to an individual.

Which of the following changes in the exchange market is disadvantageous to Charles Associates?

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

A country has a trade surplus when the ________.

Coca Foods markets packaged foods in the United States.The company recently decided to expand globally and produce in large quantities from a central location.How will this decision impact the company's unit cost of production?

Which of the following is a major disadvantage of customizing products to suit local markets?

Foreign direct investment (FDI)________.

Theocratic law is found in Iran and Pakistan and is based on ________.

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

Do you think protectionism is totally unwarranted? Explain your answer.

Electrobox is a firm that manufactures commercial kitchen equipment.The firm decides to enter China and bonds with a Chinese firm to form a new company named Electrokitchen.This is an example of a(n)________.

________ are long-term partnerships between two or more companies to jointly develop,produce,or sell products.

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

In the ________ strategy,a company uses a hybrid approach as it attempts to reap the benefits of international scale while being responsive to local market dynamics.

Legal systems in Great Britain and the U.S.are based on ________ law.

The U.S.restricts the import of peanuts to a maximum of 1.7 million pounds per year to protect the price that domestic producers can charge.This is an example of a(n)________.

France and Germany rely on a legal system known as ________,in which legal parameters are specified in detailed legal codes.

The World Trade Organization is a permanent forum for negotiating,implementing,and monitoring international trade procedures.

________ limit the amount of particular goods that countries allow to be imported during a given year.

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