Question 1

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

Accepted Answer

A)  America exports over $1.7 trillion in goods and services each year. 
B)  Almost one-third of U.S.corporate profits come from international trade and foreign investment. 
C)  Every U.S.state has realized net employment gains directly attributed to foreign trade. 
D)  Exports create jobs for over 50 million Americans. 
E)  The U.S.exports about 20 percent of its industrial production.

Question 2

Many people fear world trade because it:

Accepted Answer

A)  will inevitably lead to inflation 
B)  will cause living standards to increase at a slower rate 
C)  causes some people to lose their jobs as production shifts abroad 
D)  has brought entire nations out of poverty 
E)  has increased per capita income for some countries

Question 3

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

Accepted Answer

A) True 
 B)False

Question 4

The same environmental factors that operate in the domestic market also exist internationally.These factors (culture,economic,political structure and actions,demographic makeup,and natural resources)should be examined regardless of the country.

Accepted Answer

A) True 
 B)False

Question 5

About 85 percent of U.S.companies export their products to other countries on a regular basis.

Accepted Answer

A) True 
 B)False

Question 6

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market.In other words,South Korea was accused of:

Accepted Answer

A)  dumping 
B)  illegal importing 
C)  countertrading 
D)  fiscal impropriety 
E)  using an illegal cartel

Question 7

With a _____,a firm produces standardized products to be sold the same way all over the world.

Accepted Answer

A)  traditional marketing strategy 
B)  global marketing standardization approach 
C)  product extension approach 
D)  culturally based marketing strategy 
E)  synergistic approach to marketing

Question 8

Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for $2.00 in American markets.American producers of computer chips cannot supply chips at the low rates that the Chinese firm is supplying them.The Chinese firm is engaging in dumping.

Accepted Answer

A) True 
 B)False

Question 9

Identify at least three negatives of global trade.

Accepted Answer

The answer of Identify at least three negatives of global...

Question 10

International Marketing,Inc.is a company located in Brazil and assists businesses that export products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country in Brazil.This company is an example of a(n):

Accepted Answer

A)  agent broker 
B)  export agent 
C)  export broker 
D)  buyer for export 
E)  import broker

Question 11

Which of the following factors make the possibility of manufacturing in the United States more attractive than in the past?

Accepted Answer

A)  Wages in China are rising 10 to 15 percent a year. 
B)  In recent years,the value of the U.S.dollar has fallen against the Chinese yuan. 
C)  Shipping costs have risen dramatically across the globe. 
D)  All of the above. 
E)  None of the above.

Question 12

All of the following statements about global marketing are true EXCEPT:

Accepted Answer

A)  Marketing to target markets throughout the world has become an imperative for business. 
B)  Often a U.S.firm's toughest domestic competition comes from foreign companies. 
C)  Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home. 
D)  Adopting a global vision can be lucrative for a company,and global marketing can offset weak domestic performance. 
E)  Foreign competitors have not gained significant market share in the U.S.

Question 13

A company that is capital-intensive:

Accepted Answer

A)  has an altered fiscal strategy for overseas operations 
B)  spends more on equipment than on labor 
C)  makes better use of benchmarking than other types of business 
D)  creates employment monopolies 
E)  must engage in countertrading due to restrictive foreign legislature

Question 14

To enter the Chinese market,Walmart purchased the general merchandise chain Trust-Mart for about $1 billion.Walmart entered the Chinese market through the use of:

Accepted Answer

A)  contract marketing 
B)  direct investment 
C)  franchising 
D)  direct exporting 
E)  countertrading

Question 15

While some countries have elements of both capitalism and socialism,most nations are at one political extreme or the other.

Accepted Answer

A) True 
 B)False

Question 16

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

Accepted Answer

A)  Export agents 
B)  Export brokers 
C)  Import broker 
D)  Buyers for export 
E)  Licensing agents

Question 17

The U.S.government prohibits the importation of Havana cigars because of political differences with Cuba.This is an example of a boycott.

Accepted Answer

A) True 
 B)False

Question 18

Negotiations (such as GATT or the Uruguay Round)between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.

Accepted Answer

A)  trade 
B)  joint venture 
C)  CRM 
D)  exchange 
E)  licensing

Question 19

The North American Free Trade Agreement (NAFTA)did all of the following EXCEPT:

Accepted Answer

A)  created the world's largest free-trade zone including Canada,the United States,and Mexico 
B)  substantially reduced economic growth in Mexico 
C)  allowed U.S.and Canadian financial-services companies to own subsidiaries in Mexico 
D)  removed many tariffs and duties so that Mexico,Canada,and the United States can trade more freely 
E)  expanded opportunities for U.S.businesses in Mexico

Question 20

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA)finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is:

Accepted Answer

A)  developing international selling schemes 
B)  implementing standard international marketing 
C)  implementing global marketing standardization 
D)  supplementing its foreign vision 
E)  practicing global marketing

Exam 5: Developing a Global Vision

Which of the following statements about the impact of international business on the U.S.economy is NOT true?

Many people fear world trade because it:

Multinational companies typically begin the development of their global business with direct investment and continue using this strategy throughout the company's life span.

The same environmental factors that operate in the domestic market also exist internationally.These factors (culture,economic,political structure and actions,demographic makeup,and natural resources)should be examined regardless of the country.

About 85 percent of U.S.companies export their products to other countries on a regular basis.

The European Union accused South Korea of selling ships at a loss in an attempt to push its European rivals out of the market.In other words,South Korea was accused of:

With a _____,a firm produces standardized products to be sold the same way all over the world.

Suppose a Chinese firm makes computer chips at $4.00 per chip but sells the chips for $2.00 in American markets.American producers of computer chips cannot supply chips at the low rates that the Chinese firm is supplying them.The Chinese firm is engaging in dumping.

Identify at least three negatives of global trade.

International Marketing,Inc.is a company located in Brazil and assists businesses that export products to Brazil.This company helps with financing,shipping,and any aspect of marketing a product from another country in Brazil.This company is an example of a(n) :

Which of the following factors make the possibility of manufacturing in the United States more attractive than in the past?

All of the following statements about global marketing are true EXCEPT:

A company that is capital-intensive:

To enter the Chinese market,Walmart purchased the general merchandise chain Trust-Mart for about $1 billion.Walmart entered the Chinese market through the use of:

While some countries have elements of both capitalism and socialism,most nations are at one political extreme or the other.

_____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations.They perform the same functions as domestic manufacturers' agents who help with financing and shipping.

The U.S.government prohibits the importation of Havana cigars because of political differences with Cuba.This is an example of a boycott.

Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.

The North American Free Trade Agreement (NAFTA) did all of the following EXCEPT:

Basketball is played nearly everywhere in the world and is an easily understood sport.The National Basketball Association (NBA) finals reached more than 600 million televisions in 195 countries.From this information,you should be able to infer that the NBA is: