Question 1

Identify a true statement about global trade.

Accepted Answer

A) It increases a firm's dependence on its domestic economy. 
B) It offers companies an invaluable source of new ideas. 
C) It increases the economic risk of multinational companies. 
D) It reduces a firm's opportunity to tap into growing new markets. 
A) It increases a firm's dependence on its domestic economy. 
B) It offers companies an invaluable source of new ideas. 
C) It increases the economic risk of multinational companies. 
D) It reduces a firm's opportunity to tap into growing new markets.

Question 2

Describe the tools used for measuring a nation's international trade. Use these tools to describe the United States' international trade experience over the past 30 years.

Accepted Answer

​A nation's balance of trade is a basic

Question 3

Describe foreign licensing and foreign franchising. What are the similarities and the differences between them? What are their benefits and challenges? Give an example of at least one company for each.

Accepted Answer

​Foreign licensing involves a domestic f

Question 4

Who among the following is most likely to benefit in a case where there is a strong dollar against a euro?

Accepted Answer

A) Hailinser, an American who exports goods to Europe 
B) Fieolia Corp., a European firm that imports goods from America 
C) Joinieker Inc., a European firm with American operations 
D) Ron, an American who is touring Europe 
A) Hailinser, an American who exports goods to Europe 
B) Fieolia Corp., a European firm that imports goods from America 
C) Joinieker Inc., a European firm with American operations 
D) Ron, an American who is touring Europe

Question 5

A disadvantage of foreign outsourcing is higher wages.

Accepted Answer

A) True 
 B)False

Question 6

Identify a true statement about the World Trade Organization (WTO).

Accepted Answer

A) It is beyond the scope of the WTO to monitor the provisions of the General Agreement on Tariffs and Trade (GATT). 
B) Ministers of the WTO meet every five years to address current world trade issues. 
C) The WTO promotes reduction of trade barriers and mediates disputes among members. 
D) It is beyond the scope of the WTO to settle international trade disputes. 
A) It is beyond the scope of the WTO to monitor the provisions of the General Agreement on Tariffs and Trade (GATT). 
B) Ministers of the WTO meet every five years to address current world trade issues. 
C) The WTO promotes reduction of trade barriers and mediates disputes among members. 
D) It is beyond the scope of the WTO to settle international trade disputes.

Question 7

Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?

Accepted Answer

A) Sloimekia has a higher trade surplus than its neighboring countries. 
B) Sloimekia enjoys an absolute advantage in producing this particular cloth. 
C) Sloimekia enjoys the highest balance of trade among its neighboring countries. 
D) Sloimekia has a lower balance of payments and a lower trade deficit. 
A) Sloimekia has a higher trade surplus than its neighboring countries. 
B) Sloimekia enjoys an absolute advantage in producing this particular cloth. 
C) Sloimekia enjoys the highest balance of trade among its neighboring countries. 
D) Sloimekia has a lower balance of payments and a lower trade deficit.

Question 8

The International Monetary Fund (IMF)exists to promote international economic cooperation and stable growth. Describe how the IMF accomplishes this.

Accepted Answer

​Like the World Bank, the International

Question 9

Identify a true statement about exporting.

Accepted Answer

A) It is colloquially known as foreign outsourcing. 
B) It is ineffective for small and mid-sized companies. 
C) It is the most basic level of international market development. 
D) It means producing products abroad and selling them domestically. 
A) It is colloquially known as foreign outsourcing. 
B) It is ineffective for small and mid-sized companies. 
C) It is the most basic level of international market development. 
D) It means producing products abroad and selling them domestically.

Question 10

Balance of payments includes foreign borrowing and lending, foreign aid payments and receipts, and foreign investments.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a disadvantage of foreign outsourcing?

Accepted Answer

A) The cost of shipping the goods can be very high. 
B) The risk of poor quality control becomes higher. 
C) The cost of production becomes irrecoverable. 
D) The foreign company pays higher wages to the workers. 
A) The cost of shipping the goods can be very high. 
B) The risk of poor quality control becomes higher. 
C) The cost of production becomes irrecoverable. 
D) The foreign company pays higher wages to the workers.

Question 12

Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.

Accepted Answer

A) countertrade 
B) importing 
C) direct selling 
D) product churning 
A) countertrade 
B) importing 
C) direct selling 
D) product churning

Question 13

Balance of payments deficit means that:

Accepted Answer

A) foreign borrowing and lending are excluded from calculating the balance of payments. 
B) more money flows in than out. 
C) more money flows out than in. 
D) foreign payments and receipts are excluded from calculating the balance of payments. 
A) foreign borrowing and lending are excluded from calculating the balance of payments. 
B) more money flows in than out. 
C) more money flows out than in. 
D) foreign payments and receipts are excluded from calculating the balance of payments.

Question 14

Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter the Chinese market. The firm offers a small-scale producer in China to produce and market its goods based on the set of specific operating functions and requirements Willister offers to the firm. This is an example of _____.

Accepted Answer

A) foreign franchising 
B) direct investment 
C) a strategic alliance 
D) a joint venture 
A) foreign franchising 
B) direct investment 
C) a strategic alliance 
D) a joint venture

Question 15

Compared to the U.S., China and India have:

Accepted Answer

A) smaller market size. 
B) higher GDP growth rates. 
C) higher per capita GDPs. 
D) limited market potential. 
A) smaller market size. 
B) higher GDP growth rates. 
C) higher per capita GDPs. 
D) limited market potential.

Question 16

_________ means buying products from overseas that have already been produced

Accepted Answer

A) Importing 
B) Exporting 
C) Franchising 
D) Outsourcing 
A) Importing 
B) Exporting 
C) Franchising 
D) Outsourcing

Question 17

Identify a true statement about comparative advantage.

Accepted Answer

A) It is the tendency of a country to choose goods that have a higher opportunity cost compared to other countries. 
B) It stays the same regardless of the changes in the technology or workforce in a country. 
C) It is affected by major trade barriers to international trade. 
D) It always remains static for developing countries. 
A) It is the tendency of a country to choose goods that have a higher opportunity cost compared to other countries. 
B) It stays the same regardless of the changes in the technology or workforce in a country. 
C) It is affected by major trade barriers to international trade. 
D) It always remains static for developing countries.

Question 18

_____ include differences among countries in language, attitudes, and values.

Accepted Answer

A) Economic differences 
B) Sociocultural differences 
C) Political differences 
D) Legal differences 
A) Economic differences 
B) Sociocultural differences 
C) Political differences 
D) Legal differences

Question 19

Requiring red-tape-intensive import licenses for certain categories is an example of a(n):

Accepted Answer

A) embargo. 
B) nontariff barrier. 
C) quota. 
D) voluntary export restraint. 
A) embargo. 
B) nontariff barrier. 
C) quota. 
D) voluntary export restraint.

Question 20

Which of the following statements is true about the markets around the world?

Accepted Answer

A) India's subscriber base for cell phones has grown explosively over the past five years. 
B) China has lower gross domestic product (GDP) growth rate than the U.S. 
C) China and India have a smaller opportunity to attract investments because of to their economic growth. 
D) Most of the developing countries remain ahead of the United States in terms of development and prosperity. 
A) India's subscriber base for cell phones has grown explosively over the past five years. 
B) China has lower gross domestic product (GDP) growth rate than the U.S. 
C) China and India have a smaller opportunity to attract investments because of to their economic growth. 
D) Most of the developing countries remain ahead of the United States in terms of development and prosperity.

Identify a true statement about global trade.

Describe the tools used for measuring a nation's international trade. Use these tools to describe the United States' international trade experience over the past 30 years.

Describe foreign licensing and foreign franchising. What are the similarities and the differences between them? What are their benefits and challenges? Give an example of at least one company for each.

Who among the following is most likely to benefit in a case where there is a strong dollar against a euro?

A disadvantage of foreign outsourcing is higher wages.

Identify a true statement about the World Trade Organization (WTO).

Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?

The International Monetary Fund (IMF)exists to promote international economic cooperation and stable growth. Describe how the IMF accomplishes this.

Identify a true statement about exporting.

Balance of payments includes foreign borrowing and lending, foreign aid payments and receipts, and foreign investments.

Which of the following is a disadvantage of foreign outsourcing?

Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.

Balance of payments deficit means that:

Compared to the U.S., China and India have:

_________ means buying products from overseas that have already been produced

Identify a true statement about comparative advantage.

_____ include differences among countries in language, attitudes, and values.

Requiring red-tape-intensive import licenses for certain categories is an example of a(n):

Which of the following statements is true about the markets around the world?

Business Now: Change Is the Only Constant

Economics: The Framework for Business

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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Exam 3: The World Marketplace: Business Without Borders

Identify a true statement about global trade.

Describe the tools used for measuring a nation's international trade. Use these tools to describe the United States' international trade experience over the past 30 years.

Describe foreign licensing and foreign franchising. What are the similarities and the differences between them? What are their benefits and challenges? Give an example of at least one company for each.

Who among the following is most likely to benefit in a case where there is a strong dollar against a euro?

A disadvantage of foreign outsourcing is higher wages.

Identify a true statement about the World Trade Organization (WTO).

Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?

The International Monetary Fund (IMF)exists to promote international economic cooperation and stable growth. Describe how the IMF accomplishes this.

Identify a true statement about exporting.

Balance of payments includes foreign borrowing and lending, foreign aid payments and receipts, and foreign investments.

Which of the following is a disadvantage of foreign outsourcing?

Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.

Balance of payments deficit means that:

Compared to the U.S., China and India have:

_________ means buying products from overseas that have already been produced

Identify a true statement about comparative advantage.

_____ include differences among countries in language, attitudes, and values.

Requiring red-tape-intensive import licenses for certain categories is an example of a(n):

Which of the following statements is true about the markets around the world?

Business Now: Change Is the Only Constant

Economics: The Framework for Business

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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