Question 1

A U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. This is an example of _____.

Accepted Answer

A)  countertrade 
B)  direct exporting 
C)  foreign licensing 
D)  international production 
A)  countertrade 
B)  direct exporting 
C)  foreign licensing 
D)  international production

Question 2

Under a multidomestic strategy, each national market is treated equally.

Accepted Answer

A) True 
 B)False

Question 3

When McDonald's franchises into foreign countries, they are engaging in direct international investment.

Accepted Answer

A) True 
 B)False

Question 4

MATCHING
Complete the following using the terms listed.
-A nation's _____ is the rate at which currency can be exchanged for the currency of another nation.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage 
A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage

Question 5

Vvey Inc, a pet accessories manufacturer exports large quantities of its product to U.S. at a lower price than the same product in the home market. Vvey Inc. could be accused of _____.

Accepted Answer

A)  exporting 
B)  embargo 
C)  dumping 
D)  quota 
A)  exporting 
B)  embargo 
C)  dumping 
D)  quota

Question 6

China is the least-preferred company for offshoring.

Accepted Answer

A) True 
 B)False

Question 7

One effect of the North American Free Trade Agreement (NAFTA) is:

Accepted Answer

A)  an increase in trade among the NAFTA member nations 
B)  an increase in the number of low-wage jobs in the United States 
C)  a decrease in trade among NAFTA member nations 
D)  an increase in trade restrictions among the member nations 
A)  an increase in trade among the NAFTA member nations 
B)  an increase in the number of low-wage jobs in the United States 
C)  a decrease in trade among NAFTA member nations 
D)  an increase in trade restrictions among the member nations

Question 8

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will _____ and the balance of payments with Japan will _____.

Accepted Answer

A)  not change; improve 
B)  not change; get worse 
C)  improve; improve 
D)  improve; get worse 
A)  not change; improve 
B)  not change; get worse 
C)  improve; improve 
D)  improve; get worse

Question 9

Trading with other countries may increase a company's risk.

Accepted Answer

A) True 
 B)False

Question 10

The purpose of ______is to make imports more expensive for domestic buyers.

Accepted Answer

A)  exchange controls 
B)  embargo 
C)  dumping 
D)  tariffs 
A)  exchange controls 
B)  embargo 
C)  dumping 
D)  tariffs

Question 11

The objective of quotas is to _____.

Accepted Answer

A)  prevent dumping 
B)  raise revenue for the government 
C)  ban the importation of certain goods 
D)  protect domestic industries 
A)  prevent dumping 
B)  raise revenue for the government 
C)  ban the importation of certain goods 
D)  protect domestic industries

Question 12

Even though the United States manufactures textiles, China is able to produce them more efficiently. Thus, China has a _____ in manufacturing textiles.

Accepted Answer

A)  tariff 
B)  quota 
C)  trade restriction 
D)  comparative advantage 
A)  tariff 
B)  quota 
C)  trade restriction 
D)  comparative advantage

Question 13

The country Artesia exported products totaling $86 billion last year. During the same year, Artesia imported products valued at $43 billion. Artesia has a(n) _____.

Accepted Answer

A)  exchange rate of 2 to 1 
B)  trade deficit of $43 billion 
C)  trade surplus of $43 billion 
D)  unfavorable balance of payments 
A)  exchange rate of 2 to 1 
B)  trade deficit of $43 billion 
C)  trade surplus of $43 billion 
D)  unfavorable balance of payments

Question 14

Allison, a U.S. citizen, travels to Europe and spends $2,000 on souvenirs. She is contributing to the _____.

Accepted Answer

A)  U.S. trade surplus 
B)  growing exchange rate 
C)  U.S. balance of payments surplus 
D)  U.S. balance of payments deficit 
A)  U.S. trade surplus 
B)  growing exchange rate 
C)  U.S. balance of payments surplus 
D)  U.S. balance of payments deficit

Question 15

The European Union (EU) _____.

Accepted Answer

A)  recently became part of the North American Free Trade Agreement 
B)  wants to introduce European citizenship as a complement to national citizenship 
C)  made trade with the United States more difficult 
D)  introduced the euro to coincide with each country's own currency 
A)  recently became part of the North American Free Trade Agreement 
B)  wants to introduce European citizenship as a complement to national citizenship 
C)  made trade with the United States more difficult 
D)  introduced the euro to coincide with each country's own currency

Question 16

Distinguish between a global strategy and a multidomestic strategy for marketing goods in other nations.

Accepted Answer

In a global business strategy, a firm se

Question 17

The Foreign Corrupt Practices Act:

Accepted Answer

A)  forbids U.S. companies from bribing foreign officials, political candidates, or government representatives. 
B)  funds projects that build or expand a nation's infrastructure. 
C)  mediates trade disputes among trade agreement member nations. 
D)  promotes trade through financial cooperation. 
A)  forbids U.S. companies from bribing foreign officials, political candidates, or government representatives. 
B)  funds projects that build or expand a nation's infrastructure. 
C)  mediates trade disputes among trade agreement member nations. 
D)  promotes trade through financial cooperation.

Question 18

Berry Corp. manufactures microprocessors and sells it to a computer manufacturing company in Japan. Berry Corp. is engaging in _____.

Accepted Answer

A)  international production 
B)  foreign licensing 
C)  Countertrade 
D)  indirect exporting 
A)  international production 
B)  foreign licensing 
C)  Countertrade 
D)  indirect exporting

Question 19

According to the U.S. Census Bureau, the global birth rate is steadily growing.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would result from devaluation of the U.S. dollar?

Accepted Answer

A)  Foreign goods would be less expensive for American consumers. 
B)  Foreign firms would have to pay more to purchase U.S. assets. 
C)  The cost of foreign vacations for U.S. citizens would be reduced. 
D)  U.S. goods would sell for less abroad. 
A)  Foreign goods would be less expensive for American consumers. 
B)  Foreign firms would have to pay more to purchase U.S. assets. 
C)  The cost of foreign vacations for U.S. citizens would be reduced. 
D)  U.S. goods would sell for less abroad.

A U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. This is an example of _____.

Under a multidomestic strategy, each national market is treated equally.

When McDonald's franchises into foreign countries, they are engaging in direct international investment.

MATCHING Complete the following using the terms listed. -A nation's _____ is the rate at which currency can be exchanged for the currency of another nation.

Vvey Inc, a pet accessories manufacturer exports large quantities of its product to U.S. at a lower price than the same product in the home market. Vvey Inc. could be accused of _____.

China is the least-preferred company for offshoring.

One effect of the North American Free Trade Agreement (NAFTA) is:

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will _ and the balance of payments with Japan will _.

Trading with other countries may increase a company's risk.

The purpose of ______is to make imports more expensive for domestic buyers.

The objective of quotas is to _____.

Even though the United States manufactures textiles, China is able to produce them more efficiently. Thus, China has a _____ in manufacturing textiles.

The country Artesia exported products totaling $86 billion last year. During the same year, Artesia imported products valued at $43 billion. Artesia has a(n) _____.

Allison, a U.S. citizen, travels to Europe and spends $2,000 on souvenirs. She is contributing to the _____.

The European Union (EU) _____.

Distinguish between a global strategy and a multidomestic strategy for marketing goods in other nations.

The Foreign Corrupt Practices Act:

Berry Corp. manufactures microprocessors and sells it to a computer manufacturing company in Japan. Berry Corp. is engaging in _____.

According to the U.S. Census Bureau, the global birth rate is steadily growing.

Which of the following would result from devaluation of the U.S. dollar?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 4: Competing in World Markets

A U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. This is an example of _____.

Under a multidomestic strategy, each national market is treated equally.

When McDonald's franchises into foreign countries, they are engaging in direct international investment.

MATCHING Complete the following using the terms listed. -A nation's _____ is the rate at which currency can be exchanged for the currency of another nation.

Vvey Inc, a pet accessories manufacturer exports large quantities of its product to U.S. at a lower price than the same product in the home market. Vvey Inc. could be accused of _____.

China is the least-preferred company for offshoring.

One effect of the North American Free Trade Agreement (NAFTA) is:

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will _____ and the balance of payments with Japan will _____.

Trading with other countries may increase a company's risk.

The purpose of ______is to make imports more expensive for domestic buyers.

The objective of quotas is to _____.

Even though the United States manufactures textiles, China is able to produce them more efficiently. Thus, China has a _____ in manufacturing textiles.

The country Artesia exported products totaling $86 billion last year. During the same year, Artesia imported products valued at $43 billion. Artesia has a(n) _____.

Allison, a U.S. citizen, travels to Europe and spends $2,000 on souvenirs. She is contributing to the _____.

The European Union (EU) _____.

Distinguish between a global strategy and a multidomestic strategy for marketing goods in other nations.

The Foreign Corrupt Practices Act:

Berry Corp. manufactures microprocessors and sells it to a computer manufacturing company in Japan. Berry Corp. is engaging in _____.

According to the U.S. Census Bureau, the global birth rate is steadily growing.

Which of the following would result from devaluation of the U.S. dollar?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will _ and the balance of payments with Japan will _.