Question 1

HydroCan and Ozo of Asia work together to research and develop water filtration. They have been manufacturing two water filters in the Asia plant. With regard to this strategic alliance, which of the following is true?

Accepted Answer

A)  A clear vision of the future of the venture must be held by at least one of HydroCan or Ozo for it to be a success. 
B)  Partner compatibility is guaranteed by financial agreements at the outset. 
C)  The satisfaction of Ozo must be assured for it to work, since it is the most influential party. 
D)  Each party agrees to cooperate for mutual benefit. 
E)  All of these are true.

Question 2

In which international organizational structure would royalties likely be paid to the exporter?

Accepted Answer

A)  Strategic alliance 
B)  Joint venture 
C)  Licensing arrangement 
D)  A green field manufacturing plant 
E)  Branch office

Question 3

According to the World Bank, ________ are high-income countries, while ________ are upper middle income countries.

Accepted Answer

A)  Australia, Japan, and Israel; China, Argentina, and South Africa 
B)  China, Colombia, and Lebanon; Armenia, Guatemala, and Vietnam 
C)  Argentina and South Africa; Colombia, Lebanon, and Turkey 
D)  Colombia, Lebanon, and Turkey; Australia, Japan, South Korea; 
E)  Canada, the United States, and most countries in Europe; Kuwait, the United Arab Emirates and Oman.

Question 4

A Canadian company has given exclusive rights to a Swiss company to manufacture its products. This is an example of

Accepted Answer

A)  foreign direct investment. 
B)  a licensing arrangement. 
C)  a branch office setup. 
D)  a strategic alliance. 
E)  an import-export relationship.

Question 5

When the value of the Canadian dollar drops

Accepted Answer

A)  both our imports and our exports become more expensive. 
B)  our imports become cheaper and our exports become more expensive. 
C)  our imports become more expensive and our exports become cheaper. 
D)  both our imports and our exports become cheaper. 
E)  there is no change in the price of our imports and our exports.

Question 6

Tariffs increase government revenue, discourage the sale of imported products, and raise prices for consumers.

Accepted Answer

A) True 
 B)False

Question 7

Which areas represent the three major market places for international business?

Accepted Answer

A)  North America, South America, and Asia-Pacific 
B)  North America, Europe, and Asia-Pacific 
C)  South America, Africa, and Asia-Pacific 
D)  South America, Europe, and Africa 
E)  Asia-Pacific, Europe, and Africa

Question 8

The global business environment encompasses many international forces that influence the outcomes of companies doing business in foreign countries. Which of the following scenarios would best count as evidence of globalization?

Accepted Answer

A)  Diamonds mined in Country X are sold on the markets in Country Y. The proceeds are then used to fund a coup against the government in Country X. 
B)  A natural disaster disables factories in Country X that produce computer chips for Company Y. Company Y reduces the number of employee shifts and raises the price of its products. 
C)  Farmers in Country X have lost most of their wheat crops due to a drought. The market price for wheat triples and the government pays the farmers for a percentage of the lost wheat. 
D)  Country X has almost mined all of its available natural energy sources. The government has been investing in alternative energy research for years and now an efficient synthetic energy source has been developed. 
E)  Country X has raised the tax on oil products. As a result more people are taking public transportation and reducing unnecessary car travel.

Question 9

In assessing a country's national competitive advantage, what is meant by "factor conditions"?

Accepted Answer

The answer of In assessing a country's national competitive advantage,...

Question 10

The contemporary world economy revolves around the major marketplaces of North America, Europe, and Asia-Pacific.

Accepted Answer

A) True 
 B)False

Question 11

Describe the impact of exports and imports on a country's balance of trade and its balance of payments.

Accepted Answer

The answer of Describe the impact of exports and imports...

Question 12

Canada ranks ________ among the G8 countries in the proportion of production that is exported.

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth 
E)  fifth

Question 13

Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?

Accepted Answer

The answer of Why would two companies, both earning large...

Question 14

The results for Canada from the North American Free Trade Agreement include all of the following except

Accepted Answer

A)  Canada has become an exporting powerhouse. 
B)  direct foreign investment increased. 
C)  Canada now exports 40 percent of its GDP. 
D)  U.S. imports from (and exports) to Mexico increased. 
E)  Canada is the least trade-intensive country in the G7 group.

Question 15

According to the World Economic Forum's global competitiveness ranking, the top three countries in 2015 were

Accepted Answer

A)  China, India, and Ireland. 
B)  Switzerland, Singapore, and the United States. 
C)  the United States, Canada, and Australia. 
D)  Ireland, Iceland, and Sweden. 
E)  China, Singapore, and Japan.

Question 16

In the World Economic Forum's 2015 global competitiveness ranking, Canada ranked

Accepted Answer

A)  first. 
B)  second. 
C)  fourth. 
D)  sixth. 
E)  fifteenth.

Question 17

With respect to exchange rates and competition, it is correct to say that

Accepted Answer

A)  companies that conduct international operations do not have to worry about the effect of exchange-rate fluctuations on competition because the accounting department does the conversions. 
B)  as the value of a country's currency falls, its balance of trade becomes less favourable. 
C)  as the value of a country's currency falls, there is an increased incentive for foreign companies to ship products into the domestic market. 
D)  Canadian firms can deal with a stronger Canadian dollar by increasing the efficiency their operations. 
E)  all of these are correct.

Question 18

Imports are

Accepted Answer

A)  services that are created in Canada and sold abroad. 
B)  products that are made or grown abroad and sold in Canada; services cannot be imported. 
C)  goods and services that are made or grown in Canada and sold abroad. 
D)  products that are made or grown in Canada and sold abroad; services cannot be imported. 
E)  goods and services that are made or grown abroad and sold in Canada.

Question 19

What is globalization?

Accepted Answer

The answer of What is globalization?...

Question 20

The aim of NAFTA is to create a free trade area for Canada, the United States, and Western Europe.

Accepted Answer

A) True 
 B)False

Exam 5: The Global Context of Business

HydroCan and Ozo of Asia work together to research and develop water filtration. They have been manufacturing two water filters in the Asia plant. With regard to this strategic alliance, which of the following is true?

In which international organizational structure would royalties likely be paid to the exporter?

According to the World Bank, are high-income countries, while are upper middle income countries.

A Canadian company has given exclusive rights to a Swiss company to manufacture its products. This is an example of

When the value of the Canadian dollar drops

Tariffs increase government revenue, discourage the sale of imported products, and raise prices for consumers.

Which areas represent the three major market places for international business?

The global business environment encompasses many international forces that influence the outcomes of companies doing business in foreign countries. Which of the following scenarios would best count as evidence of globalization?

In assessing a country's national competitive advantage, what is meant by "factor conditions"?

The contemporary world economy revolves around the major marketplaces of North America, Europe, and Asia-Pacific.

Describe the impact of exports and imports on a country's balance of trade and its balance of payments.

Canada ranks ________ among the G8 countries in the proportion of production that is exported.

Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?

The results for Canada from the North American Free Trade Agreement include all of the following except

According to the World Economic Forum's global competitiveness ranking, the top three countries in 2015 were

In the World Economic Forum's 2015 global competitiveness ranking, Canada ranked

With respect to exchange rates and competition, it is correct to say that

Imports are

What is globalization?

The aim of NAFTA is to create a free trade area for Canada, the United States, and Western Europe.