Question 1

Companies doing international business often face a smorgasbord of _____.

Accepted Answer

A) bribes to pay 
B) unreasonable taxes 
C) tariffs 
D) inconsistent laws and regulations

Question 2

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n)____ advantage.

Accepted Answer

A) comparative 
B) resource/input 
C) absolute 
D) hard-core technological

Question 3

A strategic alliance between a U.S.firm and a German firm can achieve all of the following benefits except _____.

Accepted Answer

A) enhancing marketing efforts 
B) improving products 
C) reducing production and distribution costs 
D) guaranteeing increased market share

Question 4

When researching global business opportunities,firms must grasp a variety of cultural,technological,economic,and political differences.

Accepted Answer

A) True 
 B)False

Question 5

Nations practice dumping in order to _____.

Accepted Answer

A) sell off surpluses of domestic goods that can't be sold in the home country 
B) clean out the economic system 
C) gain market share in developing countries 
D) all of these

Question 6

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts,improved products,and the reduction of production and distribution costs.

Accepted Answer

A) True 
 B)False

Question 7

All of the following pieces of advice are significant to someone preparing for a career in international business except:

Accepted Answer

A) plan your undergraduate education accordingly. 
B) get some direct experience in the area of international business. 
C) interact with people from other cultures. 
D) read widely about the types of businesses in countries that interest you.

Question 8

The United States currently enjoys an international trade equilibrium.

Accepted Answer

A) True 
 B)False

Question 9

If a country is the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries we say that the country has an absolute advantage in economic terms.

Accepted Answer

A) True 
 B)False

Question 10

The euro,the common currency of the European Union,facilitates trade and finance by _____.

Accepted Answer

A) enabling different member economies to act as one 
B) simplifying exchange rate differences 
C) banning the U.S.dollar in member countries 
D) guaranteeing economic stability to member nations

Question 11

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

Accepted Answer

A) True 
 B)False

Question 12

Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good.
-If Cajun Chicken opens company owned stores and restaurants in Europe,it will be engaged in _____.

Accepted Answer

A) licensing 
B) franchising 
C) exporting 
D) foreign direct investment

Question 13

All of the following nations belong to the European Union: Ireland,the United Kingdom,Spain,Portugal,Sweden,Denmark,Finland,and Switzerland.

Accepted Answer

A) True 
 B)False

Question 14

If you were in charge of a developing country,where would you go for financial assistance?

Accepted Answer

A) The International Monetary Fund 
B) World Trade Organization 
C) The World Bank 
D) both (a)and (c)

Question 15

Which powerful trading bloc came about because of an agreement between the United States,Canada and Mexico?

Accepted Answer

A) EU (European Union) 
B) MERCOSUR (for Mercado Commun del Sur) 
C) NAFTA (North American Free Trade Association) 
D) ASEAN (the Association of Southeast Asian Nations)

Question 16

Unless a country's absolute advantage is based on some limited natural resource,it seldom lasts.

Accepted Answer

A) True 
 B)False

Question 17

When they started overseas operations,top managers at Keyboard Electronics had to learn to appreciate other countries' systems of shared beliefs,values,customs,and behaviors.In other words,they had to come to grips with elements of what is best characterized as the social environment.

Accepted Answer

A) True 
 B)False

Question 18

Ben Franklin's adage "Time is money" is now a universally accepted principle.

Accepted Answer

A) True 
 B)False

Question 19

By forming a foreign subsidiary,Cane Productions Ltd.hopes to realize such advantages as _____.

Accepted Answer

A) getting full access to local markets 
B) exempting itself from regulations that hamper the activities of foreign firms 
C) gaining tighter controls over the subsidiary's operations 
D) all of these

Question 20

Chic Clothing Inc. has expanded to six locations in four different countries. Having seized the opportunity to make this move two years ago, top managers are now very glad they did (as are shareholders). Business is booming in both the U.S. and foreign markets. Current plans call for opening four new stores every year—two in the United States and two in Europe—for each of the next ten years. Chic’s managers are well aware that they’ll have to put a great deal of effort into learning new languages, traditions, customs, exchange rates, religions, and political practices
-Chic managers must appreciate the system of shared beliefs,values,customs,and behaviors-called "norms" or the "national normalcy scheme"-of each country in which they want to do business.

Accepted Answer

A) True 
 B)False

Exam 9: Business in a Global Environment

Companies doing international business often face a smorgasbord of _____.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n) ____ advantage.

A strategic alliance between a U.S.firm and a German firm can achieve all of the following benefits except _____.

When researching global business opportunities,firms must grasp a variety of cultural,technological,economic,and political differences.

Nations practice dumping in order to _____.

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts,improved products,and the reduction of production and distribution costs.

All of the following pieces of advice are significant to someone preparing for a career in international business except:

The United States currently enjoys an international trade equilibrium.

If a country is the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries we say that the country has an absolute advantage in economic terms.

The euro,the common currency of the European Union,facilitates trade and finance by _____.

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

All of the following nations belong to the European Union: Ireland,the United Kingdom,Spain,Portugal,Sweden,Denmark,Finland,and Switzerland.

If you were in charge of a developing country,where would you go for financial assistance?

Which powerful trading bloc came about because of an agreement between the United States,Canada and Mexico?

Unless a country's absolute advantage is based on some limited natural resource,it seldom lasts.

When they started overseas operations,top managers at Keyboard Electronics had to learn to appreciate other countries' systems of shared beliefs,values,customs,and behaviors.In other words,they had to come to grips with elements of what is best characterized as the social environment.

Ben Franklin's adage "Time is money" is now a universally accepted principle.

By forming a foreign subsidiary,Cane Productions Ltd.hopes to realize such advantages as _____.