Question 1

In general, a country accumulates reserves when the net of its current and capital account transactions shows a deficit.

Accepted Answer

A) True 
 B)False  False

Question 2

Global companies entering new markets will need to adapt their offerings, distribution systems, and operations to local demand and custom.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is a characteristic of countries in a free trade area?

Accepted Answer

A)  abolition of internal tariffs and quotas 
B)  establishment of common external barriers 
C)  removal of restriction on factor movements 
D)  harmonization of economic, social, and regulatory policies 
A)  abolition of internal tariffs and quotas 
B)  establishment of common external barriers 
C)  removal of restriction on factor movements 
D)  harmonization of economic, social, and regulatory policies A

Question 4

The members of a customs union agree to the establishment of individual external trade barriers.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is characteristic of low-income countries?

Accepted Answer

A)  sustained economic growth 
B)  low engagement in agriculture 
C)  high degree of urbanization 
D)  heavy reliance on foreign aid 
A)  sustained economic growth 
B)  low engagement in agriculture 
C)  high degree of urbanization 
D)  heavy reliance on foreign aid

Question 6

The macro dimensions of the environment are economic, social and cultural, political and legal, and technological.

Accepted Answer

A) True 
 B)False

Question 7

Low-income countries typically have low birth rates and high literacy rates.

Accepted Answer

A) True 
 B)False

Question 8

With regard to Gross National Product per capita, which of the following categories of countries is considered to be developed?

Accepted Answer

A)  lower-middle income 
B)  high-income 
C)  low-income 
D)  upper-middle income 
A)  lower-middle income 
B)  high-income 
C)  low-income 
D)  upper-middle income

Question 9

Which of the following statements is true of global trade patterns?

Accepted Answer

A)  The annual rate of output is less than the total merchandise trade. 
B)  In most countries, the share of trade as a percentage of the national economy has reduced. 
C)  Import and export growth has outpaced the rate of increase in GNP. 
D)  The share of agriculture in exports has increased over the past decade. 
A)  The annual rate of output is less than the total merchandise trade. 
B)  In most countries, the share of trade as a percentage of the national economy has reduced. 
C)  Import and export growth has outpaced the rate of increase in GNP. 
D)  The share of agriculture in exports has increased over the past decade.

Question 10

Which of the following is the most valuable economic variable used to chart strategic plans for global market expansion of commercial products?

Accepted Answer

A)  regulations 
B)  competitors 
C)  income 
D)  location 
A)  regulations 
B)  competitors 
C)  income 
D)  location

Question 11

The United States is an example of a country that follows a fixed exchange-rate system.

Accepted Answer

A) True 
 B)False

Question 12

________ accounts for the largest share of output in less developed countries.

Accepted Answer

A)  Education 
B)  Agriculture 
C)  Consumer goods 
D)  Heavy industries 
A)  Education 
B)  Agriculture 
C)  Consumer goods 
D)  Heavy industries

Question 13

Which of the following is an example of a customs union?

Accepted Answer

A)  CSME 
B)  European Economic Area 
C)  NAFTA 
D)  Mercosur 
A)  CSME 
B)  European Economic Area 
C)  NAFTA 
D)  Mercosur

Question 14

Which of the following categories of countries is referred to as a postindustrial country?

Accepted Answer

A)  low-income 
B)  upper-middle income 
C)  lower-middle income 
D)  high-income 
A)  low-income 
B)  upper-middle income 
C)  lower-middle income 
D)  high-income

Question 15

________ refers to the price of one currency in terms of another.

Accepted Answer

A)  Tariff 
B)  Exchange rate 
C)  Duty 
D)  National income 
A)  Tariff 
B)  Exchange rate 
C)  Duty 
D)  National income

Question 16

What are the characteristics of a low-income country?

Accepted Answer

Low-income countries share the following

Question 17

The current account is a record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows.

Accepted Answer

A) True 
 B)False

Question 18

Purchasing power differences can account for differential in demand of products and services, and also provide an indication on differences in costs.

Accepted Answer

A) True 
 B)False

Question 19

Technology as a factor has contributed to the flattening of the world economy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true about the trends in world economy?

Accepted Answer

A)  Global economic activity will shift from the East to the West. 
B)  The demand for natural resources will continue to grow. 
C)  Shifts in consumer segments will not affect the consumer marketplace. 
D)  An aging worldwide population will demand decreasing levels of productivity. 
A)  Global economic activity will shift from the East to the West. 
B)  The demand for natural resources will continue to grow. 
C)  Shifts in consumer segments will not affect the consumer marketplace. 
D)  An aging worldwide population will demand decreasing levels of productivity.

In general, a country accumulates reserves when the net of its current and capital account transactions shows a deficit.

Global companies entering new markets will need to adapt their offerings, distribution systems, and operations to local demand and custom.

Which of the following is a characteristic of countries in a free trade area?

The members of a customs union agree to the establishment of individual external trade barriers.

Which of the following is characteristic of low-income countries?

The macro dimensions of the environment are economic, social and cultural, political and legal, and technological.

Low-income countries typically have low birth rates and high literacy rates.

With regard to Gross National Product per capita, which of the following categories of countries is considered to be developed?

Which of the following statements is true of global trade patterns?

Which of the following is the most valuable economic variable used to chart strategic plans for global market expansion of commercial products?

The United States is an example of a country that follows a fixed exchange-rate system.

________ accounts for the largest share of output in less developed countries.

Which of the following is an example of a customs union?

Which of the following categories of countries is referred to as a postindustrial country?

________ refers to the price of one currency in terms of another.

What are the characteristics of a low-income country?

The current account is a record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows.

Purchasing power differences can account for differential in demand of products and services, and also provide an indication on differences in costs.

Technology as a factor has contributed to the flattening of the world economy.

Which of the following statements is true about the trends in world economy?

Introduction to Global Marketing

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Global Entry and Expansion Strategies

Competitive Analysis and Strategy

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters

Exam 2: The Global Economic Environment

In general, a country accumulates reserves when the net of its current and capital account transactions shows a deficit.

Global companies entering new markets will need to adapt their offerings, distribution systems, and operations to local demand and custom.

Which of the following is a characteristic of countries in a free trade area?

The members of a customs union agree to the establishment of individual external trade barriers.

Which of the following is characteristic of low-income countries?

The macro dimensions of the environment are economic, social and cultural, political and legal, and technological.

Low-income countries typically have low birth rates and high literacy rates.

With regard to Gross National Product per capita, which of the following categories of countries is considered to be developed?

Which of the following statements is true of global trade patterns?

Which of the following is the most valuable economic variable used to chart strategic plans for global market expansion of commercial products?

The United States is an example of a country that follows a fixed exchange-rate system.

________ accounts for the largest share of output in less developed countries.

Which of the following is an example of a customs union?

Which of the following categories of countries is referred to as a postindustrial country?

________ refers to the price of one currency in terms of another.

What are the characteristics of a low-income country?

The current account is a record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows.

Purchasing power differences can account for differential in demand of products and services, and also provide an indication on differences in costs.

Technology as a factor has contributed to the flattening of the world economy.

Which of the following statements is true about the trends in world economy?

Introduction to Global Marketing

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Global Entry and Expansion Strategies

Competitive Analysis and Strategy

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters