Question 1

Joint ventures allow companies to share risks, costs, profits, and management responsibilities with one or more host country nationals.

Accepted Answer

A) True 
 B)False

Question 2

A U.S. company operating in the European Union (EU) is required to adhere to European regulations, such as mandatory vacation time.

Accepted Answer

A) True 
 B)False

Question 3

A country that cannot maintain a monopoly from producing a certain good can still have an absolute advantage.

Accepted Answer

A) True 
 B)False

Question 4

A less-developed country wants to build new port facilities, which will allow it to increase agricultural exports. Financing for this project could come from the _____.

Accepted Answer

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

Question 5

A superior education system has proven to have no effect on comparative advantages in human resources.

Accepted Answer

A) True 
 B)False

Question 6

Compared with the United States, Europeans value employee benefits more than low unemployment and business efficiency.

Accepted Answer

A) True 
 B)False

Question 7

Since NAFTA, U.S. trade with Latin American countries has tripled.

Accepted Answer

A) True 
 B)False

Question 8

If a nation has an unfavorable balance of trade, it also has an unfavorable balance of payments.

Accepted Answer

A) True 
 B)False

Question 9

An absolute advantage occurs when a country can maintain _____.

Accepted Answer

A)  a monopoly by outlawing foreign imports 
B)  a monopoly by levying high taxes on imports 
C)  a monopoly by being the lowest-cost producer of a good or service 
D)  its advantage by producing a good or service more efficiently 
A)  a monopoly by outlawing foreign imports 
B)  a monopoly by levying high taxes on imports 
C)  a monopoly by being the lowest-cost producer of a good or service 
D)  its advantage by producing a good or service more efficiently

Question 10

Companies such as Dell Computer adapt their Web sites to specific countries. These companies are following a(n) _____ strategy.

Accepted Answer

A)  international marketing 
B)  orderly marketing 
C)  global business 
D)  multidomestic 
A)  international marketing 
B)  orderly marketing 
C)  global business 
D)  multidomestic

Question 11

U.S. _____ make up about a quarter of the U.S. gross domestic product (GDP).

Accepted Answer

A)  petroleum exports 
B)  computer technology 
C)  exports and imports of goods and services 
D)  production of consumer electronic products 
A)  petroleum exports 
B)  computer technology 
C)  exports and imports of goods and services 
D)  production of consumer electronic products

Question 12

A less-developed nation is facing a financial crisis due to the rapid devaluation of its currency. Which of the following might aid this country?

Accepted Answer

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

Question 13

Although people in developing nations have lower per capita incomes than more highly developed nations, their ______represents a lucrative market for global trade.

Accepted Answer

A)  technology 
B)  political stability 
C)  huge populations 
D)  infrastructure 
A)  technology 
B)  political stability 
C)  huge populations 
D)  infrastructure

Question 14

Importing refers to selling domestically produced goods and services in foreign countries.

Accepted Answer

A) True 
 B)False

Question 15

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of _____.

Accepted Answer

A)  an exchange control 
B)  a quota 
C)  a protective tariff 
D)  dumping 
A)  an exchange control 
B)  a quota 
C)  a protective tariff 
D)  dumping

Question 16

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.

Accepted Answer

A) True 
 B)False

Question 17

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass. Upon returning to the United States, she was required to pay a _____ on the items.

Accepted Answer

A)  protective tariff 
B)  revenue tariff 
C)  service tax 
D)  exchange rate tax 
A)  protective tariff 
B)  revenue tariff 
C)  service tax 
D)  exchange rate tax

Question 18

Identify three important decisions a business must make before deciding to go global.

Accepted Answer

Three key decisions include de

Question 19

People in developing nations have higher per-capita incomes than people in developed nations.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true regarding hard currencies?

Accepted Answer

A)  Countries with hard currency typically use the barter system when exporting goods. 
B)  The U.S. dollar is an example of hard currency, which is easily converted into other currencies. 
C)  Hard currency is difficult to convert into other currency. 
D)  A country with hard currency is likely to have a trade deficit. 
A)  Countries with hard currency typically use the barter system when exporting goods. 
B)  The U.S. dollar is an example of hard currency, which is easily converted into other currencies. 
C)  Hard currency is difficult to convert into other currency. 
D)  A country with hard currency is likely to have a trade deficit.

Joint ventures allow companies to share risks, costs, profits, and management responsibilities with one or more host country nationals.

A U.S. company operating in the European Union (EU) is required to adhere to European regulations, such as mandatory vacation time.

A country that cannot maintain a monopoly from producing a certain good can still have an absolute advantage.

A less-developed country wants to build new port facilities, which will allow it to increase agricultural exports. Financing for this project could come from the _____.

A superior education system has proven to have no effect on comparative advantages in human resources.

Compared with the United States, Europeans value employee benefits more than low unemployment and business efficiency.

Since NAFTA, U.S. trade with Latin American countries has tripled.

If a nation has an unfavorable balance of trade, it also has an unfavorable balance of payments.

An absolute advantage occurs when a country can maintain _____.

Companies such as Dell Computer adapt their Web sites to specific countries. These companies are following a(n) _____ strategy.

U.S. _____ make up about a quarter of the U.S. gross domestic product (GDP).

A less-developed nation is facing a financial crisis due to the rapid devaluation of its currency. Which of the following might aid this country?

Although people in developing nations have lower per capita incomes than more highly developed nations, their ______represents a lucrative market for global trade.

Importing refers to selling domestically produced goods and services in foreign countries.

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of _____.

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass. Upon returning to the United States, she was required to pay a _____ on the items.

Identify three important decisions a business must make before deciding to go global.

People in developing nations have higher per-capita incomes than people in developed nations.

Which of the following statements is true regarding hard currencies?

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

Joint ventures allow companies to share risks, costs, profits, and management responsibilities with one or more host country nationals.

A U.S. company operating in the European Union (EU) is required to adhere to European regulations, such as mandatory vacation time.

A country that cannot maintain a monopoly from producing a certain good can still have an absolute advantage.

A less-developed country wants to build new port facilities, which will allow it to increase agricultural exports. Financing for this project could come from the _____.

A superior education system has proven to have no effect on comparative advantages in human resources.

Compared with the United States, Europeans value employee benefits more than low unemployment and business efficiency.

Since NAFTA, U.S. trade with Latin American countries has tripled.

If a nation has an unfavorable balance of trade, it also has an unfavorable balance of payments.

An absolute advantage occurs when a country can maintain _____.

Companies such as Dell Computer adapt their Web sites to specific countries. These companies are following a(n) _____ strategy.

U.S. _____ make up about a quarter of the U.S. gross domestic product (GDP).

A less-developed nation is facing a financial crisis due to the rapid devaluation of its currency. Which of the following might aid this country?

Although people in developing nations have lower per capita incomes than more highly developed nations, their ______represents a lucrative market for global trade.

Importing refers to selling domestically produced goods and services in foreign countries.

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of _____.

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass. Upon returning to the United States, she was required to pay a _____ on the items.

Identify three important decisions a business must make before deciding to go global.

People in developing nations have higher per-capita incomes than people in developed nations.

Which of the following statements is true regarding hard currencies?

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