Question 1

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

Accepted Answer

A) True 
 B)False

Question 2

A(n)_____ allows a company to share risks,costs,profits,and management responsibilities with another company.

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)countertrade

Question 3

Many developing nations have lower per capita incomes than highly developed countries.This fact ________.

Accepted Answer

A)  indicates that they represent an insignificant market for most products 
B)  means that the developing nations are unlikely to experience much economic growth 
C)  does not mean there is little opportunity for sales 
D)  means that they are only likely to purchase low-tech merchandise

Question 4

A nation's _____ is the rate at which currency can be exchanged for the currency of another nation.

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)countertrade

Question 5

Under a multidomestic strategy,each national market is treated differently.

Accepted Answer

A) True 
 B)False

Question 6

The EU bans imports of any U.S.agricultural product that has been treated with growth hormones.In response,the United States triples tariffs on imports of selected European products.This would be an example of a protective tariff.

Accepted Answer

A) True 
 B)False

Question 7

Countries establish a __________ where they can trade among themselves without trade barriers.

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)countertrade

Question 8

Trade among the NAFTA nations has changed little since the adoption of the agreement.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

By allowing a company to purchase another existing firm in the host country,a(n)________ permits a largely domestic business to gain an international presence very quickly.

Accepted Answer

A)  acquisition 
B)  foreign licensing agreement 
C)  joint venture 
D)  countertrade

Question 11

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

Question 12

Discuss the various levels of involvement in international business.

Accepted Answer

The answer of Discuss the various levels of involvement in...

Question 13

What is dumping? How do countries counteract this practice?

Accepted Answer

The answer of What is dumping? How do countries counteract...

Question 14

Canada tends to maintain a balance between exports and imports.

Accepted Answer

A) True 
 B)False

Question 15

The Corruption of Foreign Public Officials Act:

Accepted Answer

A)  mediates trade disputes among trade agreement member nations 
B)  funds projects that build or expand a nation's infrastructure 
C)  prescribes fines and jail times for managers who are aware of bribe activity 
D)  promotes trade through financial cooperation

Question 16

All of the following are included in the top five nations Canada trades with EXCEPT ________.

Accepted Answer

A)  Japan 
B)  United States 
C)  China 
D)  Mexico

Question 17

Maria is the Middle Eastern sales manager for a large company.She avoids giving pork products and wine to Arab customers as gifts.Maria is being sensitive to ________.

Accepted Answer

A)  religious differences 
B)  language differences 
C)  differences in consumer habits 
D)  differences in business practices

Question 18

Which of the following statements is true regarding comparative advantage?

Accepted Answer

A)  Comparative advantage is becoming rarer these days. 
B)  Every country possesses an absolute advantage. 
C)  Developing countries possess no comparative advantage. 
D)  A nation must first possess an absolute advantage in a particular area before it can gain a comparative advantage.

Question 19

Decisions made by the ___________ regarding trade disputes are binding on the parties involved.

Accepted Answer

A)  World Bank 
B)  General Agreement on Tariffs and Trade (GATT) 
C)  North American Free Trade Agreement (NAFT
A)  
D)  International Monetary Fund (IMF)

Question 20

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically.To give the domestic industry a better chance to operate profitably,the government restricts the number of these appliances that can be imported by applying a(n)________.

Accepted Answer

A)  import quota 
B)  embargo 
C)  protective tariff 
D)  revenue tariff

Exam 4: Competing in World Markets

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

A(n) _____ allows a company to share risks,costs,profits,and management responsibilities with another company.

Many developing nations have lower per capita incomes than highly developed countries.This fact ________.

A nation's _____ is the rate at which currency can be exchanged for the currency of another nation.

Under a multidomestic strategy,each national market is treated differently.

The EU bans imports of any U.S.agricultural product that has been treated with growth hormones.In response,the United States triples tariffs on imports of selected European products.This would be an example of a protective tariff.

Countries establish a __________ where they can trade among themselves without trade barriers.

Trade among the NAFTA nations has changed little since the adoption of the agreement.

The European Union (EU) ________.

By allowing a company to purchase another existing firm in the host country,a(n) ________ permits a largely domestic business to gain an international presence very quickly.

A trade deficit occurs when ________.

Discuss the various levels of involvement in international business.

What is dumping? How do countries counteract this practice?

Canada tends to maintain a balance between exports and imports.

The Corruption of Foreign Public Officials Act:

All of the following are included in the top five nations Canada trades with EXCEPT ________.

Maria is the Middle Eastern sales manager for a large company.She avoids giving pork products and wine to Arab customers as gifts.Maria is being sensitive to ________.

Which of the following statements is true regarding comparative advantage?

Decisions made by the ___________ regarding trade disputes are binding on the parties involved.

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically.To give the domestic industry a better chance to operate profitably,the government restricts the number of these appliances that can be imported by applying a(n) ________.