Question 1

A global marketing approach is ideal for marketing luxury items due to their universal appeal.

Accepted Answer

A) True 
 B)False

Question 2

An understanding of religious holidays is essential in order to overcome _____ international trade barriers.

Accepted Answer

A)  political 
B)  physical 
C)  cultural 
D)  legal

Question 3

XR Motor Company is merging its individual operation into one so that it can offer a standardized product. It also plans to sells the product in essentially the same manner throughout the world. This strategy can best be described as a(n) _____.

Accepted Answer

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

Question 4

The Foreign Corrupt Practices Act regulates the payment of bribes by U.S. firms to officials in foreign countries where such practices are customary.

Accepted Answer

A) True 
 B)False

Question 5

The hypothetical country of Rhodia requires foreign companies that buy and sell Austrica products to use only Rhodia 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 6

A revenue tariff is designed to generate income for citizens.

Accepted Answer

A) True 
 B)False

Question 7

The value of imports and exports within the United States has remained steady over the last ten years.

Accepted Answer

A) True 
 B)False

Question 8

The currency of all EU countries is the euro.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A global business strategy involves separate product and marketing strategies that vary from one nation to another.

Accepted Answer

A) True 
 B)False

Question 11

Goto, Inc., a U.S. based company, is trying to establish a supplier relationship with a parts manufacturer in a small Asian country. Filipe, the purchasing manager, is attempting to get to know the general manager and staff of the company to help finalize the agreement. Filipe is attempting to overcome what type of barrier?

Accepted Answer

A)  Physical barrier 
B)  Tariff restriction 
C)  Exchange controls 
D)  Cultural barrier

Question 12

MATCHING
Complete the following using the terms listed.
-_____monitors agreements among member nations, mediates disputes, and works to reduce trade barriers throughout the world.

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 business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage

Question 13

MATCHING
Complete the following using the terms listed.
-_____ refers to selling goods abroad at a price lower than that charged in the domestic market.

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 business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage

Question 14

The government of a less-developed country wants to build several new healthcare facilities in rural areas and improve port facilities to promote exports. The World Bank would likely deny a loan for related construction projects.

Accepted Answer

A) True 
 B)False

Question 15

A joint venture is a partnership between companies formed for a specific undertaking.

Accepted Answer

A) True 
 B)False

Question 16

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Accepted Answer

A) True 
 B)False

Question 17

A weak euro is a disadvantage to European exporters.

Accepted Answer

A) True 
 B)False

Question 18

AusterTech, a U.S. company, produces computer parts and sells them to South American countries. AusterTech is engaging in the international business activity known as _____.

Accepted Answer

A)  importing 
B)  dumping 
C)  countertrade 
D)  exporting

Question 19

A country's comparative advantage is measured only in manufactured goods.

Accepted Answer

A) True 
 B)False

Question 20

BMW and Toyota have agreed to develop a sports car together and cooperate in fuel-cell technology, powertrain electrification and lightweight technologies. This is an example of _____.

Accepted Answer

A)  a joint venture 
B)  direct exporting 
C)  foreign licensing 
D)  countertrade

Exam 4: Competing in World Markets

A global marketing approach is ideal for marketing luxury items due to their universal appeal.

An understanding of religious holidays is essential in order to overcome _____ international trade barriers.

XR Motor Company is merging its individual operation into one so that it can offer a standardized product. It also plans to sells the product in essentially the same manner throughout the world. This strategy can best be described as a(n) _____.

The Foreign Corrupt Practices Act regulates the payment of bribes by U.S. firms to officials in foreign countries where such practices are customary.

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

A revenue tariff is designed to generate income for citizens.

The value of imports and exports within the United States has remained steady over the last ten years.

The currency of all EU countries is the euro.

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

A global business strategy involves separate product and marketing strategies that vary from one nation to another.

MATCHING Complete the following using the terms listed. -_____monitors agreements among member nations, mediates disputes, and works to reduce trade barriers throughout the world.

MATCHING Complete the following using the terms listed. -_____ refers to selling goods abroad at a price lower than that charged in the domestic market.

The government of a less-developed country wants to build several new healthcare facilities in rural areas and improve port facilities to promote exports. The World Bank would likely deny a loan for related construction projects.

A joint venture is a partnership between companies formed for a specific undertaking.

One advantage of a licensing agreement is that little or no investment is required to begin operating.

A weak euro is a disadvantage to European exporters.

AusterTech, a U.S. company, produces computer parts and sells them to South American countries. AusterTech is engaging in the international business activity known as _____.

A country's comparative advantage is measured only in manufactured goods.

BMW and Toyota have agreed to develop a sports car together and cooperate in fuel-cell technology, powertrain electrification and lightweight technologies. This is an example of _____.