Question 1

What is the difference between absolute advantage and comparative advantage?

Accepted Answer

A country has absolute advantage when it

Question 2

Because of its climate and terrain, Guatemala possesses a ______ over Canada in coffee production.

Accepted Answer

A)  higher GDP 
B)  higher standard of living 
C)  comparative advantage 
D)  absolute advantage 
A)  higher GDP 
B)  higher standard of living 
C)  comparative advantage 
D)  absolute advantage

Question 3

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

Accepted Answer

A firm that follows a global strategy us

Question 4

Complete the following using the terms listed below.
-A(n) ______ is a tax levied on imported products.

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 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 strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage

Question 5

A trade deficit occurs when ______.

Accepted Answer

A)  imports exceed exports 
B)  foreign-aid payments exceed exports 
C)  imports are sold at low profits 
D)  there is a net flow of money into a country 
A)  imports exceed exports 
B)  foreign-aid payments exceed exports 
C)  imports are sold at low profits 
D)  there is a net flow of money into a country

Question 6

Countries may establish ______ where they can trade among themselves with no tariffs or other trade restrictions.

Accepted Answer

A)  a free trade area 
B)  a trade treaty 
C)  economic zones 
D)  countertrade 
A)  a free trade area 
B)  a trade treaty 
C)  economic zones 
D)  countertrade

Question 7

What is the difference between a global business strategy and a multidomestic business strategy?

Accepted Answer

A global business strategy is the strate

Question 8

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Accepted Answer

A) True 
 B)False

Question 9

Complete the following using the terms listed below.
-A(n) ______ uses a standardized product and marketing strategy worldwide.

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 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 strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage

Question 10

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. 
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. 
C)  Hard currency is difficult to convert into other currency. 
D)  A country with hard currency is likely to have a trade deficit.

Question 11

An understanding of religious holidays is essential in order to overcome ______ international trade barriers.

Accepted Answer

A)  physical 
B)  cultural 
C)  political 
D)  legal 
A)  physical 
B)  cultural 
C)  political 
D)  legal

Question 12

Currencies that can be easily converted into other currencies are called soft currencies.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

Three key decisions include: d

Question 14

The European Union (EU) ______.

Accepted Answer

A)  recently became part of the North American Free Trade Agreement 
B)  wants to promote 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 promote 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 15

During the past 10 years, the value of Canadian imports and exports has ______.

Accepted Answer

A)  decreased 
B)  remained about the same 
C)  more than doubled 
D)  risen slightly 
A)  decreased 
B)  remained about the same 
C)  more than doubled 
D)  risen slightly

Question 16

The Corruption of Foreign Public Officials Act regulates the payment of bribes by Canadian firms to officials in foreign countries where such practices are customary.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations?

Accepted Answer

A)  host country strategy 
B)  global strategy 
C)  multidomestic strategy 
D)  uniform pricing strategy 
A)  host country strategy 
B)  global strategy 
C)  multidomestic strategy 
D)  uniform pricing strategy

Question 19

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

Accepted Answer

A) True 
 B)False

Question 20

Which of these countries is NOT a member in the Central American-Dominican Republic Free Trade Agreement?

Accepted Answer

A)  Unites States 
B)  Costa Rica 
C)  Dominican Republic 
D)  Canada 
A)  Unites States 
B)  Costa Rica 
C)  Dominican Republic 
D)  Canada

What is the difference between absolute advantage and comparative advantage?

Because of its climate and terrain, Guatemala possesses a ______ over Canada in coffee production.

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

Complete the following using the terms listed below. -A(n) ______ is a tax levied on imported products.

A trade deficit occurs when ______.

Countries may establish ______ where they can trade among themselves with no tariffs or other trade restrictions.

What is the difference between a global business strategy and a multidomestic business strategy?

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Complete the following using the terms listed below. -A(n) ______ uses a standardized product and marketing strategy worldwide.

Which of the following statements is true regarding hard currencies?

An understanding of religious holidays is essential in order to overcome ______ international trade barriers.

Currencies that can be easily converted into other currencies are called soft currencies.

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

The European Union (EU) ______.

During the past 10 years, the value of Canadian imports and exports has ______.

The Corruption of Foreign Public Officials Act regulates the payment of bribes by Canadian firms to officials in foreign countries where such practices are customary.

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 .

The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations?

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

Which of these countries is NOT a member in the Central American-Dominican Republic Free Trade Agreement?

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 Labour 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

What is the difference between absolute advantage and comparative advantage?

Because of its climate and terrain, Guatemala possesses a ______ over Canada in coffee production.

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

Complete the following using the terms listed below. -A(n) ______ is a tax levied on imported products.

A trade deficit occurs when ______.

Countries may establish ______ where they can trade among themselves with no tariffs or other trade restrictions.

What is the difference between a global business strategy and a multidomestic business strategy?

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Complete the following using the terms listed below. -A(n) ______ uses a standardized product and marketing strategy worldwide.

Which of the following statements is true regarding hard currencies?

An understanding of religious holidays is essential in order to overcome ______ international trade barriers.

Currencies that can be easily converted into other currencies are called soft currencies.

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

The European Union (EU) ______.

During the past 10 years, the value of Canadian imports and exports has ______.

The Corruption of Foreign Public Officials Act regulates the payment of bribes by Canadian firms to officials in foreign countries where such practices are customary.

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 ______.

The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations?

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

Which of these countries is NOT a member in the Central American-Dominican Republic Free Trade Agreement?

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 Labour 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 .