Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Film distributors sometimes change movie titles when marketing overseas due to language or slang barriers.Studios usually allow modification of its product as part of a ________ strategy.

Accepted Answer

A)  multinational 
B)  multidomestic business 
C)  global 
D)  uniform

Question 4

A weak euro benefits European exporters.

Accepted Answer

A) True 
 B)False

Question 5

Trading with other countries significantly increases a company's risk.

Accepted Answer

A) True 
 B)False

Question 6

A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company.Under this agreement,the Japanese firm has the right to manufacture and sell the Canadian firm's games in Japan.This agreement is an example of ________.

Accepted Answer

A)  countertrade 
B)  foreign licensing 
C)  international production 
D)  direct exporting

Question 7

Ford Motor Company is merging its individual operation into one so that it can use a standardized product and marketing strategy worldwide.This strategy can best be described as a(n)________.

Accepted Answer

A)  international marketing strategy 
B)  orderly marketing strategy 
C)  global strategy 
D)  multidomestic strategy

Question 8

The hypothetical country of Austrica requires foreign companies that buy and sell Austrica products to use only Austrica currency in these transactions.Austrica is using ________ as a means of controlling international trade.

Accepted Answer

A)  governmentally granted rights 
B)  exchange control 
C)  international currency trading 
D)  local banks

Question 9

All countries in Europe are now members of the European Union (EU).

Accepted Answer

A) True 
 B)False

Question 10

A nation's exchange rate is the rate at which its currency can be exchanged for goods and services.

Accepted Answer

A) True 
 B)False

Question 11

Distinguish between absolute advantage and comparative advantage.Provide an example of each.

Accepted Answer

The answer of Distinguish between absolute advantage and comparative advantage.Provide...

Question 12

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)countertrade

Question 13

Economically speaking,unlike countries included in the EU,Canada is a national market with a single economy.

Accepted Answer

A) True 
 B)False

Question 14

Exchange rates are set by the various national governments.

Accepted Answer

A) True 
 B)False

Question 15

Explain the concept of floating exchange rates.Identify factors that influence foreign exchange rates.

Accepted Answer

The answer of Explain the concept of floating exchange rates.Identify...

Question 16

Indirect exporting involves producing a component for a product that is subsequently exported.

Accepted Answer

A) True 
 B)False

Question 17

_____ are foreign-made products and services purchased by domestic consumers.

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 18

All of the following constitute a country's infrastructure EXCEPT ________.

Accepted Answer

A)  political climate 
B)  communication 
C)  energy facilities 
D)  transportation

Question 19

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

Question 20

Berry Corp.sells microprocessors to an electronic equipment manufacturer in this country who then sells equipment containing the microprocessors to Japan.Berry Corp.is engaging in ________.

Accepted Answer

A)  indirect exporting 
B)  countertrade 
C)  foreign licensing 
D)  international production

Exam 4: Competing in World Markets

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

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.

Film distributors sometimes change movie titles when marketing overseas due to language or slang barriers.Studios usually allow modification of its product as part of a ________ strategy.

A weak euro benefits European exporters.

Trading with other countries significantly increases a company's risk.

A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company.Under this agreement,the Japanese firm has the right to manufacture and sell the Canadian firm's games in Japan.This agreement is an example of ________.

Ford Motor Company is merging its individual operation into one so that it can use a standardized product and marketing strategy worldwide.This strategy can best be described as a(n) ________.

The hypothetical country of Austrica requires foreign companies that buy and sell Austrica products to use only Austrica currency in these transactions.Austrica is using ________ as a means of controlling international trade.

All countries in Europe are now members of the European Union (EU).

A nation's exchange rate is the rate at which its currency can be exchanged for goods and services.

Distinguish between absolute advantage and comparative advantage.Provide an example of each.

A(n) _____ is a tax levied on imported products.

Economically speaking,unlike countries included in the EU,Canada is a national market with a single economy.

Exchange rates are set by the various national governments.

Explain the concept of floating exchange rates.Identify factors that influence foreign exchange rates.

Indirect exporting involves producing a component for a product that is subsequently exported.

_____ are foreign-made products and services purchased by domestic consumers.

All of the following constitute a country's infrastructure EXCEPT ________.

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

Berry Corp.sells microprocessors to an electronic equipment manufacturer in this country who then sells equipment containing the microprocessors to Japan.Berry Corp.is engaging in ________.