Question 1

Which of the following is an example of a natural trade barrier?

Accepted Answer

A)  price 
B)  exchange controls 
C)  product characteristic 
D)  distance 
A)  price 
B)  exchange controls 
C)  product characteristic 
D)  distance

Question 2

A trade deficit is when a country imports more than it exports.

Accepted Answer

A) True 
 B)False

Question 3

To promote trade through financial cooperation is the role of which of the following organizations?

Accepted Answer

A)  World Bank 
B)  World Trade Organization (WTO) 
C)  International Monetary Fund (IMF) 
D)  United Nations 
A)  World Bank 
B)  World Trade Organization (WTO) 
C)  International Monetary Fund (IMF) 
D)  United Nations

Question 4

Grand Metropolitan, a British company, purchased North American-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products. Metropolitan's purchase was an example of which of the following?

Accepted Answer

A)  direct foreign investment 
B)  an international corporation 
C)  an international cooperative 
D)  a limited partnership 
A)  direct foreign investment 
B)  an international corporation 
C)  an international cooperative 
D)  a limited partnership

Question 5

Bombardier sells trains to European countries. To the European countries, these trains are an example of which of the following?

Accepted Answer

A)  imports 
B)  countertrades 
C)  intangibles 
D)  exports 
A)  imports 
B)  countertrades 
C)  intangibles 
D)  exports

Question 6

Which of the following is one of the advantages associated with multinational corporations?

Accepted Answer

A)  They have easy access to financial resources. 
B)  They have the ability to shift production from one country to another. 
C)  They have no need to be concerned about foreign currency regulations. 
D)  They have no need to worry about social and cultural issues. 
A)  They have easy access to financial resources. 
B)  They have the ability to shift production from one country to another. 
C)  They have no need to be concerned about foreign currency regulations. 
D)  They have no need to worry about social and cultural issues.

Question 7

The tax that Canada imposes on imported carbon steel products is called a tariff.

Accepted Answer

A) True 
 B)False

Question 8

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a benefit associated with free trade and globalization?

Accepted Answer

A)  a closed economy 
B)  increased per capita income 
C)  declining productivity 
D)  an increase in the number of better-paying jobs 
A)  a closed economy 
B)  increased per capita income 
C)  declining productivity 
D)  an increase in the number of better-paying jobs

Question 10

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of which of the following activities?

Accepted Answer

A)  contract manufacturing 
B)  licensing 
C)  importing 
D)  franchising 
A)  contract manufacturing 
B)  licensing 
C)  importing 
D)  franchising

Question 11

What new trade organization was created by the Uruguay Round to replace the old General Agreement on Tariffs and Trade (GATT)?

Accepted Answer

the World

Question 12

Mercosur is a free trade zone for countries in South East Asia.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following represents the world's largest free-trade zone?

Accepted Answer

A)  the ASEAN Free Trade Agreement 
B)  the North American Free Trade Agreement 
C)  the European Union Free Trade Agreement 
D)  the South Asia Free Trade Agreement 
A)  the ASEAN Free Trade Agreement 
B)  the North American Free Trade Agreement 
C)  the European Union Free Trade Agreement 
D)  the South Asia Free Trade Agreement

Question 14

Which of the following is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services?

Accepted Answer

A)  a countertrade 
B)  a counteroffer 
C)  a nonfinancial exchange 
D)  a counteraction 
A)  a countertrade 
B)  a counteroffer 
C)  a nonfinancial exchange 
D)  a counteraction

Question 15

Farmers in the United States sell peanuts to Canada. To Canadians, the peanuts are an export.

Accepted Answer

A) True 
 B)False

Question 16

The method for a company to enter a foreign market with the greatest financial rewards is foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 17

A domestic company may decide to sign an agreement for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is known as which of the following?

Accepted Answer

A)  duplicate labelling 
B)  franchising 
C)  international labelling 
D)  contract manufacturing 
A)  duplicate labelling 
B)  franchising 
C)  international labelling 
D)  contract manufacturing

Question 18

Which of the following statements best describes dumping?

Accepted Answer

A)  Dumping is legal provided that it is government subsidized. 
B)  Most industrialized nations have passed laws to make dumping illegal. 
C)  Canada has not been a victim of dumping. 
D)  Dumping is a form of export quota. 
A)  Dumping is legal provided that it is government subsidized. 
B)  Most industrialized nations have passed laws to make dumping illegal. 
C)  Canada has not been a victim of dumping. 
D)  Dumping is a form of export quota.

Question 19

Which of the following is one of the primary objectives of the EU for all its members?

Accepted Answer

A)  increase access to other trade zones 
B)  promote economic progress 
C)  ease travel between countries 
D)  improve the unemployment rate 
A)  increase access to other trade zones 
B)  promote economic progress 
C)  ease travel between countries 
D)  improve the unemployment rate

Question 20

BRIC stands for Brazil, Russia, India, and Canada.

Accepted Answer

A) True 
 B)False

Which of the following is an example of a natural trade barrier?

A trade deficit is when a country imports more than it exports.

To promote trade through financial cooperation is the role of which of the following organizations?

Grand Metropolitan, a British company, purchased North American-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products. Metropolitan's purchase was an example of which of the following?

Bombardier sells trains to European countries. To the European countries, these trains are an example of which of the following?

Which of the following is one of the advantages associated with multinational corporations?

The tax that Canada imposes on imported carbon steel products is called a tariff.

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

Which of the following is a benefit associated with free trade and globalization?

What new trade organization was created by the Uruguay Round to replace the old General Agreement on Tariffs and Trade (GATT)?

Mercosur is a free trade zone for countries in South East Asia.

Which of the following represents the world's largest free-trade zone?

Which of the following is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services?

Farmers in the United States sell peanuts to Canada. To Canadians, the peanuts are an export.

The method for a company to enter a foreign market with the greatest financial rewards is foreign direct investment.

A domestic company may decide to sign an agreement for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is known as which of the following?

Which of the following statements best describes dumping?

Which of the following is one of the primary objectives of the EU for all its members?

BRIC stands for Brazil, Russia, India, and Canada.

Political Environment

Economic Environment

Social Environment

Technological Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

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Exam 5: International Environment

Which of the following is an example of a natural trade barrier?

A trade deficit is when a country imports more than it exports.

To promote trade through financial cooperation is the role of which of the following organizations?

Grand Metropolitan, a British company, purchased North American-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products. Metropolitan's purchase was an example of which of the following?

Bombardier sells trains to European countries. To the European countries, these trains are an example of which of the following?

Which of the following is one of the advantages associated with multinational corporations?

The tax that Canada imposes on imported carbon steel products is called a tariff.

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

Which of the following is a benefit associated with free trade and globalization?

What new trade organization was created by the Uruguay Round to replace the old General Agreement on Tariffs and Trade (GATT)?

Mercosur is a free trade zone for countries in South East Asia.

Which of the following represents the world's largest free-trade zone?

Which of the following is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services?

Farmers in the United States sell peanuts to Canada. To Canadians, the peanuts are an export.

The method for a company to enter a foreign market with the greatest financial rewards is foreign direct investment.

A domestic company may decide to sign an agreement for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is known as which of the following?

Which of the following statements best describes dumping?

Which of the following is one of the primary objectives of the EU for all its members?

BRIC stands for Brazil, Russia, India, and Canada.

Political Environment

Economic Environment

Social Environment

Technological Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

Filters